Logomarca BCB

Complete glossary


Term Description
Abimaq Brazilian Association of the Machines and Equipment Industry
ACC Advances on Exchange Contracts
ACSP São Paulo Trade Association
ALADI Latin-American Integration Association
Anfavea National Association of Automotive Vehicle Manufacturers
ANP National Petroleum Agency
BCE European Central Bank
BID Inter-American Development Bank
Bird International Bank for Reconstruction and Development
BNDES National Bank of Economic and Social Development
BNDESpar BNDES Participações S.A.
BoE Bank of England
BoJ Bank of Japan
Bradies Brazilian foreign debt securities backed by US Treasury securities.

Brazil issued about US$ 50 billion of bonds in the process of renegotiation of external debt elaborated by Nicholas Brady, then Secretary of the US Treasury. Hence arose the term “Brady”.

To learn more about Bradies, see the Frequently Asked Questions about country risk (in English).
Brazilian Payments System (SPB) The SPB consists of the entities, systems and procedures related to the clearing and settlement of funds transfer, financial assets, securities transactions, and foreign currency operations.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
Broad National Consumer Price Index Extended National Consumer Price Index. Calculated monthly by the Brazilian Institute of Geography and Statistics (IBGE), reflects changes in the cost of living of families with monthly income of 1 to 40 minimum wages, living in the metropolitan areas of Belém, Belo Horizonte, Brasília, Curitiba, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo, and the cities of Campo Grande and Goiânia. The Central Bank uses the IPCA as a reference to the inflation targeting system. For IPCA historical data, see Economic Indicators Consolidated (Chapter I). To obtain data from market expectations for the IPCA, see the Focus report or historical expectations series. To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
Cadip System of Registration of Credit Operations with the Public Sector
Caged General File of the Employed and Unemployed
Camex Foreign Trade Chamber
CCR Reciprocal Credit and Payment Agreement
CDS Credit Default Swap. CDS is a bilateral contract that allows the investor to buy protection for a specific credit against a credit event of the issuer of a certain asset.

To learn more about CDS and country risk, see the Frequently Asked Questions about country risk (in English).
Cerj Rio de Janeiro State Electricity Company
CETIP Central for Custody and Financial Settlement of Securities. CETIP keeps custody of securities of corporate debt securities, time deposits (CDB), derivatives, bonds of state and municipal debts, as well as part of the federal government securities, such as CFT (Treasury Financing Certificate), CTN (National Treasury Certificate) and others.

Since 2009, Cetip is a publicly-held company for profit.

To learn more about the custody of federal government securities, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap(in English) (in English).
Cide Contribution on Intervention in the Economic Domain
CLT Consolidated Labor Legislation
CNAE National File of Economic Activities
CNI National Confederation of Industry
Cofig Export Financing and Guarantee Committee
Cofins Contribution to Social Security Financing
Cofins Import Contribution to Social Security Financing due by the Importer of Goods and Services
Compe Checks Clearinghouse. Further information.
Conab National Supply Company
Consensus rate In the Brazilian government bond market, the consensus rate tells what market estimates for the price of the auctioned security or currency. It is obtained through surveying dealer institutions some minutes before each auction end, serving as a reference for determining its result.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Copom The Monetary Policy Committee, or Copom, is the decision making body of the Central Bank of Brazil (BCB) on monetary policy. The Committee was created in June 1996.

It is responsible for setting the target for the benchmark interest rate, which in Brazil is the Over-Selic rate, or Selic rate. This target should apply in the period between Copom meetings. In some cases, the Copom also sets a bias for the Selic interest rate.

To learn more, see the Frequently Asked Questions about Copom (in English).
Core inflation Price index derived from another price index and which aims at obtaining the persistent component of inflation, or the long term inflation. The core inflation calculation has the objective of obtaining a less volatile measure than the traditional indices, allowing a view of the underlying behavior of prices that exclude seasonal increases, caused by temporary or casual factors, or assign less weight in the index composition to them.

To learn more about price indices and core inflation, see the Frequently Asked Questions about Price Indices (in English).
Country risk The country risk is an indicator which intends to objectively express the risk to which foreign investors are subject to when investing in the country.

To learn more about country risk, see the Frequently Asked Questions about country risk (in English).
CPI Consumer Price Index
CPMF Provisional Contribution on Financial Transactions
CRB Commodity Research Bureau
Debt Securitization Securitization is the operation through which several financial and non-financial assets are gathered – called base assets – as the basis over which negotiable financial securities are issued. Securitization of receivables in general is an operation in which the issuer of the security ensures to the buyer the right to the credit or receivable free from the issuer risk. Thus, these credit rights or receivables are removed from the issuer balance sheet, releasing capital for new loans, in the case of banks, or liberating resources for other objectives, in the case of companies.

Debt securitization may be understood as a process of debt renegotiation, in many cases due and not paid, having as subjacent mechanism the contractual renewal or renegotiation of clauses of the original contracts.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Decex Department of Foreign Trade Operations
DI Interbank Deposits
DI rate DI rate is the average of the interest rates on one-day-exchange-of-resources-operations, made through interfinancial deposits (DI). Only operations not involving financial institutions of the same group are taken into account for the calculation.

This rate is calculated and released by Cetip.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Direct Debt (Automatic Debt) The Direct Debt, also known as Automatic Debt, is the payment instrument through which the payer previously authorizes (the bank or the payment´s beneficiary) to debit his/her current account, usually to settle recurrent or periodic liabilities, such as the ones regarding concession of public services (water, electricity, telephone, etc.), school tuitions, insurance fees, etc.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
Direct Foreign Investment Foreign Direct Investment. One component of the Capital and Financial Account, which is a part of the Balance of Payments of a country. It is also one of the modules that make up the Electronic Declaratory Registration (RDE) in which are recorded the foreign direct investment operations in Brazil (RDE-IED). To learn more about the balance of payments and its components, see the Frequently Asked Questions about External Accounts (in English).
Direct issuance (of public debt security) Direct issuances are held by the National Treasury Secretariat (STN) directly to the beneficiary, with no public offer(auction). These issuances are related to attend specific aims defined by law, such as: securitizing federal debt (federal government’s debt or other entities’ debt that was or may be assumed by the federal government); increasing capital of public entities; guaranteeing loans; land reform; rural credit; holding structured financial operations; among others.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap(in English).
DJIA Dow Jones Industrial Average
DNIT Department of National Transportation Infrastructure
DOC DOC - Credit Document - is an order of interbank funds transfer for or on behalf of individuals or corporations, clients of financial or payment institutions and can only be sent and received by commercial banks, multiple banks with commercial portfolio, savings banks, and payment institutions authorized to operate by the BCB.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
DPMFi Domestic Federal Securitized Public Debt.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap(in English).
DRU Release of Federal Government Entitlements
Embi+ Emerging Market Bond Index Plus. Index that shows the performance of marketable securities of the foreign debt of developing countries. It is a theoretical portfolio composed of Brady bonds, Eurobonds and also instruments in dollars in the local market. It is broader than the Embi, since it includes securities other than just Brady Bonds.

To learn more about Embi and Embi+, see the Frequently Asked Questions about country risk (in English).
Embi+Br The EMBI+Br is an index which reflects the behavior of the Brazilian external debt securities. The spread over Treasury of EMBI+Br is the value commonly used by investors and general public as a measure of Brazil-risk.

To learn more about country risk, EMBI, EMBI+ and EMBI+Br, see the Frequently Asked Questions about country risk (in English).
Emerging Market Bond Index Plus Emerging Market Bond Index Plus Emerging Market Bond Index Plus.Index that shows the performance of marketable securities of the foreign debt of developing countries. It is a theoretical portfolio composed of Brady bonds, Eurobonds and also instruments in dollars in the local market. It is broader than the Embi, since it includes securities other than just Brady Bonds. To learn more about Embi and Embi+, see the Frequently Asked Questions about country risk (in English).
E-money According to Law n. 12,865, of October 9th, 2013 (art. 6, incise VI), e-money is defined as “resources stored in a device or an electronic system that allow the end user to perform a payment transaction”, exclusively in national currency (Brazilian Real).

Procedures used by payment instruments ruled by payment schemes, may be citted as examples of e-money.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
EUA United States of America
External Financing Needs External financing needs comprehend the current account deficit deducted by the net FDI (including intercompany loans), i.e., it corresponds to the parcel of the current account deficit that is not financed by the net inflow of direct investment.

To learn more about external financial needs and external accounts, see the Frequently Asked Questions about External Accounts (in English).
FAT Worker Suport Fund
FBCF Gross Fixed Capital Formation
FCVS Wage Variation Compensation Fund
FDI Direct Foreign Investment. One component of the Capital and Financial Account, which is a part of the Balance of Payments of a country.

It is also one of the modules that make up the Electronic Declaratory Registration (RDE) in which are recorded the foreign direct investment operations in Brazil (RDE-IED).

To learn more about the balance of payments and its components, see the Frequently Asked Questions about External Accounts (in English).
Fecomercio SP Trade Federation of the State of São Paulo
Fed Federal Reserve
Federal public debt security The (federal government) public debt securities are fixed income financial instruments (pre- or post-fixed) issued by the federal government to get funding from the society, aiming at financing its expenses.

They may be issued with three objectives: to finance budget deficits; to make operations with specific aims, as defined by law; and to refinance public debt.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
FGC Credit Guaranty Fund
FGV Getulio Vargas Foundation
Fiesp Federation of Industries of the State of São Paulo
FIF Financial Investment Funds
Finam Special Industrial Financing Agency
Fiscal Indicator Fiscal indicators are measures of public sector finance evolution which allow the assessment of a country"s fiscal performance over time.

To learn more, see the Frequently Asked Questions about Fiscal Data (in English).
FITVM Funds Based on Investments in Securities and Stocks
FMI Financial Market Infrastructure
FMP Mutual Privatization Funds
FOMC Federal Open-Market Committee
Foreign Exchange Coupon The fx coupon represents the interest rate of funds referenced in dollar, in the domestic market. It may be calculated as the difference between the interest rate in reais and the expected devaluation of the national currency.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap(in English).
Foreign Exchange Hedge Fx hedge may be defined as a protection against exchange rate changes. These changes, either negative or positive, may affect the economic agents’ position, depending on their exposure (active/long or passive/short exposure to the exchange rate). The hedge may be held through cash flow exchanges via swap operations or other fx derivatives, purchase or sale of assets indexed to the exchange rate, etc.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Funcex Foreign Trade Studies Center Foundation
FX swap and reverse swap Swap is a derivative instrument which allows swapping asset yields.

The FX swap held by the BCB is a purchase or a sale of a standard derivative contract traded at BMF& Bovespa, denominated “Contract of FX Swap with Periodic Adjustment Based on One-Day Repo Operations (SCS)”.

By market convention, the currency swap purchase transaction by the BCB is traditional foreign exchange swap call, and the sale of operation of these contracts is called reverse swap.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
General Government Gross Debt General Government Gross Debt (DBGG) covers the total debt liability of the federal, state and local governments (including direct and indirect administration and INSS) with the private sector, the financial public sector, the Central Bank and the rest of the world.

To learn more, see the Frequently Asked Questions about Fiscal Data (in English).
General Price Index – Internal Supply General Price Index-Internal Availability. Calculated by the Getúlio Vargas Foundation (FGV). It is a weighted average of the Wholesale Price Index (IPA-DI, 60%), the Consumer Price Index (IPC-DI, 30%) and the National Index of Construction Cost (INCC-DI, 10%). IGP-DI is collected between the first and the last day of the reference month. To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
General Price Index – Market General Price Index – Market General Market Price Index. Calculated by the Getúlio Vargas Foundation (FGV). It is a weighted average of the Wholesale Price Index (IPA-M, 60%), the Consumer Price Index (IPC-M, 30%) and the National Index of Construction Cost (INCC-M, 10%). IGP-M is collected between the 21st day of the previous month and the 20th day of the reference month. To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
Gerin Investor Relations Group of the Central Bank of Brazil
GLP Liquefied Petroleum Gas
IBC-Br Brazilian Economic Activity Index
IBGE Brazilian Institute of Geography and Statistics
Ibovespa São Paulo Stock Exchange Index
IC-Br Commodities Brazil Index
Icei Industry Businessman Confidence Index
ICMS Tax on the Circulation of Goods and Services
IGP General Price Index
IGP-DI General Price Index-Internal Availability. Calculated by the Getúlio Vargas Foundation (FGV). It is a weighted average of the Wholesale Price Index (IPA-DI, 60%), the Consumer Price Index (IPC-DI, 30%) and the National Index of Construction Cost (INCC-DI, 10%). IGP-DI is collected between the first and the last day of the reference month.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IGP-M General Market Price Index. Calculated by the Getúlio Vargas Foundation (FGV). It is a weighted average of the Wholesale Price Index (IPA-M, 60%), the Consumer Price Index (IPC-M, 30%) and the National Index of Construction Cost (INCC-M, 10%). IGP-M is collected between the 21st day of the previous month and the 20th day of the reference month.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IIA Index of Current Intentions
IIC Consumer Intentions Index
IIF 1) Institute of International Finance.
2) Index of Future Intentions.
IMF International Monetary Fund. Further information.
IMO International Maritime Organization
INCC National Construction Cost Index. Calculated by the Getúlio Vargas Foundation (FGV). It has three variants, which differ by the collection period: INCC-10, INCC-M and INCC-DI.

To learn more about this and other price índices, see the Frequently Asked Questions about Price Indices (in English).
Inec Consumer Expectation National Index
INPC National Consumer Price Index. Calculated by the Brazilian Institute of Geography and Statistics (IBGE), reflects changes in the cost of living of families with monthly income of 1 to 5 minimum wages, living in the metropolitan areas of Belém, Belo Horizonte, Brasília, Curitiba, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo, and the cities of Campo Grande and Goiânia.

To learn more about this and other price índices, see the Frequently Asked Questions about Price Indices (in English).
INSS National Social Security Institute
IPA Broad Producer Price Index. Calculated by the Getúlio Vargas Foundation (FGV). It records changes of prices of products sold by domestic producers at wholesale. It has three variants, which differ by the collection period: IPA-10, IPA-M and IPA-DI.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IPA-DI Wholesale Price Index – Internal Supply
IPA-Industrial Wholesale Price Index – Industry
IPA-M Wholesale Price Index – Markets
IPA-OG-PI Wholesale Price Index – Overall Supply – Industrial Products
IPC Consumer Price Index
IPCA Extended National Consumer Price Index. Calculated monthly by the Brazilian Institute of Geography and Statistics (IBGE), reflects changes in the cost of living of families with monthly income of 1 to 40 minimum wages, living in the metropolitan areas of Belém, Belo Horizonte, Brasília, Curitiba, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo, and the cities of Campo Grande and Goiânia.

The Central Bank uses the IPCA as a reference to the inflation targeting system.

For IPCA historical data, see Economic Indicators (Chapter I).

To obtain data from market expectations for the IPCA, see the Focus Report or historical expectations series.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IPCA-15 Extended National Consumer Price Index-15. Calculated monthly by the Brazilian Institute of Geography and Statistics (IBGE). It is calculated in the same way as the IPCA, but with the collection period 15 days in advance (i.e., computing from the 16th of the previous month to the 15th of the current month), excluding the city of Campo Grande.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IPCA-PI Broad National Consumer Price Index – Industrial Products
IPC-Br Consumer Price Index – Brazil
IPC-Fipe Fipe"s Consumer Price Index. Calculated by the Institute for Economic Research - Fipe. It reflects changes in the cost of living of families with monthly income from 1 to 10 minimum wages, living in the city of São Paulo-SP.

To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).
IPI Industrialized Products Tax
IRPF Income Tax on Individual Persons
ITR Rural Land Tax
IVG-R The Financed Housing Collateral Value Index – IVG-R measures the long term trend of the household’s houses in Brazil. The index is calculated using the evaluation data of housing loans that are granted to natural persons and collateralized by financed real estate. The IVG-R is constructed using information from eleven Brazilian metropolitan regions : Belém, Belo Horizonte, Brasília, Curitiba, Fortaleza, Goiânia, Porto Alegre, Recife, Rio de Janeiro, Salvador e São Paulo.
LCI Real Estate Exchange Bill
LFT Treasury Financial Bill. Post-fixed federal government securities whose pay is given by the variation of the accumulated Selic rate since the base date until the security"s maturity date.

It is a security issued by the National Treasury Secretariat for budget deficit coverage exclusively in book-entry form, with custody in the Selic (Special System for Settlement and Custody).

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
LH Mortgage Bills
LRF Fiscal Responsibility Law
LSPA Systematic Farm Production Survey
LTN National Treasury Bill. Prefixed federal government securities whose pay is calculated based on the discount over the nominal value (R$1,000.00) obtained in the sale of the security by National Treasury Secretariat (STN) – through public offer or direct issuance.

It does not pay coupon interest. Interest is received by the investor only at maturity of the security.

It is a security issued by the National Treasury Secretariat for budget deficit coverage exclusively in book-entry form, with custody in the Selic (Special System for Settlement and Custody).

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
mbd million barrels/day
MDIC Ministry of Development, Industry and Foreign Trade
Mercosul Southern Common Market
MIB Milan Stock Exchange
Moderfrota Program of Modernization of the Farm Tractor Fleet and Like Implements and Harvesters
Monetary Policy Committee The Monetary Policy Committee, or Copom, is the decision making body of the Central Bank of Brazil (BCB) on monetary policy. The Committee was created in June 1996. It is responsible for setting the target for the benchmark interest rate, which in Brazil is the Over-Selic rate, or Selic rate. This target should apply in the period between Copom meetings. In some cases, the Copom also sets a bias for the Selic interest rate. To learn more, see the Frequently Asked Questions about Copom (in English).
MTE Ministry of Labor and Employment
Nasdaq National Association of Securities Dealers Automated Quotations
National Consumer Price Index National Consumer Price Index. Calculated by the Brazilian Institute of Geography and Statistics (IBGE), reflects changes in the cost of living of families with monthly income of 1 to 5 minimum wages, living in the metropolitan areas of Belém, Belo Horizonte, Brasília, Curitiba, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo, and the cities of Campo Grande and Goiânia. To learn more about price indices, see the Frequently Asked Questions about Price Indices (in English).
NBCE Banco Central Note Special – Series E
NCM Common Mercosul Nomenclature
Net Public Sector Debt The Net Public Sector Debt (NPSD, or DLSP, in Portuguese) consolidates the net debt of non-financial public sector and the BCB with the financial system (public and private), the non-financial private sector and the rest of the world.

To learn more, see the Frequently Asked Questions about Fiscal Data (in English).
NTN National Treasury Note
NTN-B National Treasury Notes – Series B. . Post-fixed federal government securities whose yields are linked to the variation of the Consumer Price Index - IPCA.

The bond pays interest coupon semi-annually.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
NTN-C National Treasury Notes – Series C. Post-fixed federal government securities whose yields are linked to the variation of the IGP-M (a price index).

The bond pays interest coupon semi-annually.

The NTN-C has not been issued since December 2006.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
NTN-D National Treasury Notes – Series D
NTN-F National Treasury Notes - Series F. Prefixed federal government securities, whose pay is calculated based on the discount over the nominal value (R$1,000.00) obtained in the sale of the security by the National Treasury Secretariat (STN) – through public offer or direct issuance.

The bond pays interest coupon semi-annually.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
NTN-I National Treasury Notes – Series I
OECD Organization for Economic Cooperation and Development
OIT International Labour Organization
Opec Organization of Petroleum Exporting Countries
Open Market Operation Open market operations (OMO) comprise purchases and sales of securities in the secondary market, either definitive or considering resale and repurchase agreements (repos). These operations are held by central banks to implement monetary policy.

In Brazil, the OMO are the main instrument used by the BCB to regulate availability and cost of banking reserves, such as to keep basic interest rate (Selic rate) compatible with the target level set by the Monetary Policy Committee (Copom). On its OMO, the BCB uses exclusively federal public debt securities under custody in Selic (Special System for Settlement and Custody).

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Par value Par value is the nominal value of the security on the issuance date, or base date, updated by its respective index, when it is the case. This value does not incorporate interest rate coupons. For LTN and NTN-F, prefixed securities, par price is always equal to face value (R$1,000.00).

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Pasep Program of Civil Service Asset Formation
Pasep-Importação Program of Civil Service Asset Formation levied on imports of goods and services
Payment Institution Payment institution is a legal non-financial company that performs payment services under the payment scheme, responsible for the relationship between end users, payers and recipients/payees.

Examples of payment institutions are the enablers of merchants to accept cards, and non-financial institutions that receive funds from the public to be used to make payments or transfer funds using, for example, e-money.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
Payment schemes Payment scheme is a set of rules and procedures that disciplines a provision of a certain service of payment to the public.

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
PEA Working Population
PF Individual Person
PIA-Empresa Annual Industrial Survey – Company
PIA-Produto Annual Industrial Survey – Product
PIB Gross Domestic Product
PIM Monthly Industrial Survey
PIM-PF Monthly Industrial Survey – Physical Output
PIS Social Integration Program
PMC Monthly Trade Sector Survey
PME Monthly Employment Survey
Portfolio Investment Portfolio investment is the international flow of assets and liabilities comprised of issuance of credit securities commonly negotiated in the secondary market.

Asset-side of portfolio investment refers to Brazilian funds used to purchase foreign securities, negotiated domestically or abroad. Liabilities-side registers purchases by non-residents of equities and fixed rate securities issued in Brazil.

To learn more about prtfolio investment and external accounts, see the Frequently Asked Questions about External Accounts (in English).
Price at the curve In the securities market, price at the curve is the security price updated by its original yield, defined at the issuance.

According to the characteristics of the security, this price incorporates the index change, interest rate coupons and premium or discount factors. For calculating the price at the curve for LTN and NTN-F (two federal government bonds), it is necessary to build the yield curve for each security, based on the placement rate in the auctions.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Price Index Price indices are numbers that aggregate and represent the prices of a particular product basket. Its variation measures, therefore, the average variation in the prices of the products in this basket.

To learn more about price indices, see the Frequently Asked Questions about Price Indices (in English).
Privatization Currencies Privatization currencies are certain Brazilian debt securities which may be used as payment for acquiring public companies in privatization processes. However, in each privatization process, the National Council of Privatization is responsible for defining the maximum share of each security in the payment, and the remaining share must be settled in cash.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Prodilist Industrial Products List
Proer Program of Incentives to the Restructuring and Strengthening of the National Financial System
Proex Export Financing Program
Rating A rating is a risk assessment attributed to a debt issuer (a country or a company, for example). This rating is based on an evaluation conducted by an institution specialized in analyzing credit, about the ability and willingness of this issuer to honor, timely and totally, its debt service. The rating is a relevant instrument for the market, since it gives to potential creditors an independent opinion regarding credit risk for the debt of the analyzed issuer.

To learn more about country risk and rating, see the Frequently Asked Questions about country risk (in English).
Real Effective Exchange Rate The real effective exchange rate (REER) is a measure of export competitiveness. It is the average exchange rate of the Brazilian real against the currencies of our 15 main trade partners, weighted by the share of these countries in the total Brazilian exports.

To learn more about real effective Exchange rate, see the Frequently Asked Questions about External Accounts (in English).
Regulated Prices Prices insensitive to supply and demand because they are determined by pre-established contract or set by a public sector entity.

To learn more, see the Frequently Asked Questions about Regulated Prices (in English).
Repo (repurchase agreement) operations In the fixed income market, repo (repurchase agreement) operations are operations of purchase (or sale) of securities with an agreement of resale (or repurchase) of the same securities on a future date, up to the securities maturity.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
RGPS Social Security General System
RMSP Metropolitan Region of São Paulo
S&P 500 Standard and Poor"s 500
Sars Severe Acute Respiratory Syndrome
SBPE Brazilian System of Savings and Loans
Secex Foreign Trade Secretariat
Securities public offers Securities public offers are auctions held by STN to sell or (re)buy securities, aiming at managing domestic securitized public debt.

These auctions, in which financial institutions directly participate, are announced through a STN communiqué, and held through a BCB electronic system, when involving offer of securities under custody in Selic (Special System for Settlement and Custody), or through Cetip (Central for Custody and Financial Settlement of Securities), when involving offer of securities registered there.

To learn more, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Selic The Special System for Settlement and Custody (Selic), managed by the BCB, is the central depository of book-entry securities issued by the National Treasury, and registers and settles operations with these securities.

To learn more about Selic, click here.

To learn more about the custody of federal securities, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
Selic rate The effective Selic rate is the average of the interest rates of 1-working-day repo operations with federal public securities registered with Selic, settled in Selic or in systems operated by clearing and asset settlement houses.

The Monetary Policy Committee (Copom) defines the Selic rate target and its possible bias. The interest rate fixed at the Copom meeting is the target for the Selic rate, which lasts for the whole period between regular Committee meetings. If so, the Committee may also set the bias, a prerrogative given to the Central Bank governor to change (in the bias direction) the target for the Selic rate at any time between meetings.

For more information about the Selic rate (concept, methodology, normatives, daily evolution since 1986), click here.

To learn more about the setting of the basic interest rate by the Copom, see the Frequently Asked Questions about the Copom (in English). To learn more about the custody of federal securities in the Selic, see the Frequently Asked Questions about Public Debt Management, Open Market Operations and FX Swap (in English).
TED TED - Electronic Funds Transfer, is an interbank funds transfer order between corporations or individuals accounts.

The holders of accounts at the BCB, except clearing houses and providers of clearing and settlement services, may offer the TED to their customers, but it is not mandatory.

To see the table of fees charged by financial institutions, click here (in Portuguese).

Para learn more, see the Frequently Asked Questions about the Brazilian Payments System (in English).
TJLP Long-Term Interest Rate
USDA United States Department of Agriculture
Wholesale Price Index Broad Producer Price Index. Calculated by the Getúlio Vargas Foundation (FGV). It records changes of prices of products sold by domestic producers at wholesale. It has three variants, which differ by the collection period: IPA-10, IPA-M and IPA-DI. To learn more about this and other price indices, see the Frequently Asked Questions about Price Indices (in English).