Brazil’s Central Bank named Best Monetary Authority

Central Banking, a publication specializing in finance and coverage of monetary authorities, awarded the Central Bank of Brazil as the best in its field this year. 

The magazine cited the “excellent conduct” of the country’s monetary policy amid the Covid pandemic and the challenge of putting into practice the institution’s autonomy, recently granted by law.

Chairman Roberto Campos Neto’s work during the health crisis was also the main reason why he received the prestigious Central Banker of the Year award from The Banker magazine in 2021.

Other international organizations also praised the actions of the Central Bank during the pandemic. It was the first to cut interest rates to generate liquidity in times of social isolation and reduced economic activity, as well as one of the first to raise the country’s benchmark interest rate to contain the inflationary effects of the economic recovery.

Central Banking’s award also highlighted the commitment of the Brazilian Central Bank to transparency, innovation, and sustainability. 

The publication highlighted the Central Bank’s direct contact with the population through seven social networks, on which it has 1.8 million followers, and a weekly live broadcast called LiveBC on the institution’s YouTube channel — a very different communication strategy from many of its peers, which are much more closed and indecipherable to ordinary citizens. 

The magazine highlighted the country’s innovation initiatives — such as the Central Bank’s PIX instant payment system, launched in late 2020 and fully controlled by the monetary authority. 

In addition to being used by more than 70 percent of the population, PIX has turned out to be a new source and avenue of innovation for the entire financial ecosystem. 

The publication also wrote that the authority “made the code to PIX open source, so other central banks can use the coding,” which means more innovation will be shared globally as well.

In Central Banking’s evaluation, inflation in Brazil is under better control than in many advanced economies, and the authority’s autonomy “has ensured greater consistency in policy during a transition of government.”

A recent survey by banking federation Febraban showed that Brazilians began 2024 more concerned (67 percent) about inflation than in 2023 (54 percent). This is mainly due to the rise in food prices in recent months. Another factor that could hinder a more robust recovery in retail is the likely slowdown in the labor market.

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