Resolution No. 61

RESOLUTION

BCB NO. 61, OF JANUARY 13, 2021

Approves the Bylaws of the Monetary Policy Committee (Copom).

The Collegiate Board of the Central Bank of Brazil, in a session held on January 13, 2021, based on arts. 9 and 10, item XII, of Law No. 4.595, of December 31, 1964, and on art. 2 of Decree No. 3.088, of June 21, 1999,

RESOLVES:

Art. 1 The Annexed Bylaws, which regulate the structure and functioning of the Monetary Policy Committee (Copom), are hereby approved.

Art. 2 Circular No. 3.868, of December 19, 2017, is hereby revoked.

Art. 3 This Resolution enters into force on the date of its publication.

Bruno Serra Fernandes Fabio Kanczuk Director of Monetary Policy Director of Economic Policy

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ANNEXED BYLAWS TO RESOLUTION BCB NO. 61, OF JANUARY 13, 2021

Regulates the structure and functioning of the Monetary Policy Committee (Copom).

CHAPTER I

COMPETENCE

Art. 1 The Monetary Policy Committee (Copom), constituted within the Central Bank of Brazil, is responsible, based on an assessment of the macroeconomic scenario and the main risks associated with it:

I - to define the target for the Selic Rate;

II - to define the strategic orientations and guidelines for the execution of monetary policy;

III - to publish the Inflation Report referred to in art. 5 of Decree No. 3.088, of June 21, 1999.

§ 1 The Selic Rate is the average adjusted rate of daily financing obtained in the Special Settlement and Custody System (Selic) for federal public securities, calculated according to the methodology established in Resolution BCB No. 46, of November 24, 2020.

§ 2 The validity period of the target for the Selic Rate shall begin on the business day following the end of each Copom meeting.

CHAPTER II

STRUCTURE AND FUNCTIONING

Art. 2 The members of Copom are the President and the Directors of the Central Bank of Brazil.

Art. 3 Copom shall meet ordinarily eight times a year and extraordinarily upon convocation by the President.

Sole Paragraph. The annual calendar of ordinary Copom meetings shall be published, through a Communication from the Director of Monetary Policy, by the end of June of the year prior to the holding of the meetings, with adjustments allowed until the last day of the year in which the publication occurs.

Art. 4 Ordinary and extraordinary meetings shall be held with the presence of, at minimum, the President, or his substitute, and half the number of Directors.

Art. 5 Ordinary meetings shall be held in two sessions:

I - the first session shall be dedicated to technical presentations on the economic situation; and

II - the second session shall be dedicated to the decision on the target for the Selic Rate.

§ 1 In the first session of ordinary meetings, in addition to the Copom members, the Heads of the following Units shall participate, who will carry out the technical presentations:

I - Department of International Affairs (Derin);

II - Economic Department (Depec);

III - Department of Studies and Research (Depep);

IV - Department of Banking Operations and Payment Systems (Deban);

V - Open Market Operations Department (Demab); and

VI - International Reserves Department (Depin).

§ 2 In the event of absence of the Unit Heads mentioned in § 1, the Directors of the corresponding areas shall indicate substitutes, who will carry out the technical presentations.

§ 3 In the first session of ordinary meetings, other employees of the Central Bank of Brazil and the Press Advisor of the Central Bank of Brazil may participate, when authorized by the President.

§ 4 In the second session of ordinary meetings, in addition to the Copom members, the Head of Depep shall participate, without the right to vote, who will carry out a technical presentation.

§ 5 In extraordinary meetings, the Copom members shall participate, and, when authorized by the President, other employees of the Central Bank of Brazil.

Art. 6 Copom shall deliberate by simple majority of votes, to be cast orally, with the President having the casting vote.

Art. 7 The Communication of Copom's decision shall be published on the date of the second session of the ordinary meeting, from 18:30 (eight thirty p.m.) and immediately after the end of the session.

§ 1 The Communication referred to in this article shall identify the vote of each Copom member.

§ 2 In the case of an extraordinary meeting, the time for publishing the Communication shall be determined by the Director of Monetary Policy.

Art. 8 The Minutes of the Copom meeting shall contain the decision taken by Copom, the nominal record of the votes cast by its members, and a summary of the discussions that occurred during the meeting.

Sole Paragraph. The Minutes of the Copom meeting shall be published within 4 (four) business days counted from the date of the end of the meeting.

CHAPTER III

ATTRIBUTES OF THE PARTICIPANTS IN COPOM MEETINGS

Art. 9 The attributes of the Copom members are:

I - President and Directors: to evaluate information, presentations, and documents offered as subsidies for the collegiate's deliberation;

II - President: to preside over the meetings and, at the end, forward the vote;

III - Director of Monetary Policy:

a) to organize and coordinate the meetings;

b) to publish, through a Communication, the decisions taken by Copom;

IV - Director of Economic Policy: to coordinate the preparation of the Inflation Report and the Minutes referred to in art. 8.

Art. 10. In the technical presentations referred to in art. 5, the Unit Heads shall bring to the knowledge of the Copom members the most relevant facts related to the diagnosis and prognosis of the following subjects:

I - Head of Derin: international economic situation;

II - Head of Depec: domestic economic situation and analysts' expectations for macroeconomic variables;

III - Head of Depep: prospective assessment of inflation;

IV - Head of Deban: liquidity conditions and functioning of the banking system;

V - Head of Demab: money market and open market operations; and

VI - Head of Depin: international financial and foreign exchange markets.

CHAPTER IV

SILENCE PERIOD

Art. 11. Silence Period is the period before and after Copom meetings.

Sole Paragraph. The Silence Period extends from Wednesday of the week prior to the week in which the ordinary Copom meeting occurs until the moment of publication of the Minutes referred to in art. 8.

Art. 12. During the Silence Period, it is prohibited for Copom members:

I - to issue statements on Copom Matters in speeches, press interviews, and meetings with persons who may have an interest in Copom decisions, including regulated entities, economists, investors, market analysts, and businesspeople; and

II - to authorize the dissemination of pronouncements in which they have issued statements on Copom Matters, even if the statement was issued outside the Silence Period.

Sole Paragraph. Copom Matters are all subjects related to the situation of the Brazilian or international economy, including interest rates, exchange rates, and any others, provided they can influence or be influenced by Copom decisions.

Art. 13. During the Silence Period, provided that the prohibition established in art. 12 is respected, the participation of Copom members in events and meetings is permitted, including:

I - meetings of national, international, or multilateral groups or organizations of which they are members; and

II - meetings on subjects of lato sensu supervision.

Art. 14. Non-compliance with the provisions of art. 12 by any Copom member shall be promptly communicated to the President, who shall decide on the participation of that member in the meeting.

Art. 15. The prohibition established in art. 12 may be waived by decision of the President.

Sole Paragraph. In the event of exceptional need to communicate on Copom Matters during the Silence Period, the President may make public statements, to which he must seek to give maximum publicity.