CMN Resolution No. 5,211 — Establishes Limits and Conditions for the Execution of the Currency Swap Agreement between the Central Bank of Brazil and the People's Bank of China

CMN RESOLUTION NO. 5,211, OF MAY 12, 2025

Establishes limits and conditions for the execution of the currency swap agreement between the Central Bank of Brazil and the People's Bank of China.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on May 9, 2025, based on Article 4, caput, item V, of Law No. 4,595, of December 31, 1964, Article 6 of Law No. 11,908, of March 3, 2009, and in view of the provisions of Law No. 14,286, of December 29, 2021,

R E S O L V E D:

Article 1. This Resolution establishes the limits and conditions to be observed in the execution of a local currency swap agreement to be entered into between the Central Bank of Brazil and the People's Bank of China, in accordance with Article 6 of Law No. 11,908, of March 3, 2009.

Article 2. The outstanding value of operations arising from the agreement referred to in Article 1 may not exceed the aggregate amount of R$157,000,000,000.00 (one hundred and fifty-seven billion reais), allowing for the execution of operations for up to five years from the date of effectiveness, as established in the agreement referred to in Article 1, which may, however, be extended according to the will of the parties.

Article 3. The BRL amounts received by the People's Bank of China shall be credited to a special deposit account opened in its name at the Central Bank of Brazil, without remuneration or access to credit, the use of which shall be restricted to fund movements related to the execution of the agreement referred to in Article 1 and conditioned on the objective of this agreement.

Article 4. The Central Bank of Brazil, at the time of contracting the operations governed by this Resolution, must observe the exchange rates, relative to the two currencies, practiced in the national and international foreign exchange markets, as well as the interest rates and risk premiums of sovereign obligations traded in the national and international financial markets, in order to ensure that the established and agreed conditions guarantee the economic and financial equilibrium of the assets and/or obligations eventually assumed.

Article 5. The Central Bank of Brazil will adopt the necessary measures for the execution of the provisions of this Resolution.

Article 6. This Resolution enters into force on the date of its publication.

RENATO DIAS DE BRITO GOMES

Acting President of the Central Bank of Brazil