The Brazilian central bank will add excess reserves to its toolkit to control liquidity and increase the efficiency of monetary policy, central bank chief Ilan Goldfajn said on Tuesday.
In a briefing, Goldfajn announced measures to reduce credit costs for companies and consumers in the medium- to long-term as part of the government’s push to revive an economy mired in recession.
He said the creation of the excess reserves, a mechanism in which the bank pays interest on excess reserves kept at the bank, is not aimed at reducing the fiscal deficit or the country’s debt burden.
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