CMN Resolution No. 4520 — Establishes Guidelines for the Acquisition of Paper Currency and Metal Coins for Circulating Medium Services

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes it public that the National Monetary Council, in an extraordinary session held on September 16, 2016, based on Article 4, item II, of the aforementioned Law and Article 1, sole paragraph, of Provisional Measure No. 745 of September 15, 2016,

R E S O L V E S:

Article 1. In the acquisition of paper currency and metal coins from the Casa da Moeda do Brasil or foreign suppliers, the Central Bank of Brazil must observe the following guidelines:

I - adequacy between the volume of banknotes and metal coins in circulation, in all denominations of the "Real" monetary standard, and the demand of the national economy for circulating medium;

II - timeliness in meeting the national economy's needs regarding the availability of circulating medium;

III - efficiency in the execution of resources available in the Revenue and Expense Budget of Monetary Authority Operations (OAM) for the funding of circulating medium services; and

IV - compliance with security standards applicable to banknotes and metal coins of the "Real" monetary standard.

Article 2. In situations where the Central Bank of Brazil identifies impossibility or well-founded uncertainty regarding the ability of the Casa da Moeda do Brasil to meet the demand for circulating medium or the schedule for its supply, the Central Bank of Brazil must adopt the necessary measures to ensure the emergency supply of banknotes and coins in the national economy, observing the guidelines established in Article 1.

Article 3. The Central Bank of Brazil is authorized to adopt complementary measures necessary for the execution of the provisions of this Resolution.

Article 4. This Resolution enters into force on the date of its publication.

Ilan Goldfajn
President of the Central Bank of Brazil