Brazil to formally enshrine central bank’s autonomy

Whichever way the spinmasters spin it, the power remains in the same hands; its the system that does not work; period; a new model, a resource and people-based system with participation of all is required;

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Thousands of demonstrators protest against Brazilian President Dilma Rousseff, the federal government, ex-president Luiz Inacio Lula da Silva and the corruption cases being reported and currently investigated on March 13, 2016 in Manaus, Amazonas, northern Brazil. Some three million Brazilians enraged at corruption, recession and demanding the removal of leftist President Dilma Rousseff demonstrated across Latin America's biggest nation Sunday. AFP PHOTO/ Raphael ALVES / AFP / RAPHAEL ALVES (Photo credit should read RAPHAEL ALVES/AFP/Getty Images)

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Brazil’s government is formulating a constitutional amendment that would for the first time formally enshrine the autonomy of the central bank, the institution’s new head,Ilan Goldfajn said.

The new law would give the central bank licence to use whatever instruments it considered necessary to meet its objectives, which include financial stability and meeting an inflation target set in consultation with the government.

“There is a [bill] that will say explicitly that the central bank is autonomous: we call it operational autonomy,” Mr Goldfajn said in an interview.

The new law, which could go to Congress as a constitutional amendment as early as this year, would aim to shore up the central bank’s credibility in markets by reducing perceptions that it is vulnerable to political interference.

Under President Dilma Rousseff, who has been suspended from power pending an impeachment process for allegedly manipulating the government budget, there were…

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