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SDDS
Special Data
Dissemination Standard

 Date of last update: 01/09/2004

ANALYTICAL ACCOUNTS OF THE CENTRAL BANK

Category Provider's Data

Contact Person

 Ericsom Semerene Costa

Organization

 Banco Central do Brasil, Departamento Econômico, Divisão Monetária e Bancária
SBS Qd.3 Bl. B, Ed. Sede, 10º andar
Brasília (DF) - Brasil
CEP 70.074-900

Phone Number

 55 61 3414-1031

Fax Number

 55 61 3414-1031

E-mail

 dimob.depec@bcb.gov.br

 

Description
The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

 Data are disseminated in millions of national currency units (current values, not seasonally adjusted).The analytical balance sheet of the monetary authority, published in the monthly Central Bank Bulletin, includes the accounts of the Central Bank of Brazil, rearranged and regrouped to facilitate economic interpretation, and the international reserves, which is a consolidation of the foreign assets and liabilities of the public sector, including accounts of the National Treasury and of the Central Bank of Brazil related to the function of monetary authority. The following assets are published: foreign assets, claims on federal, state and municipal governments, on private sector, on deposit money banks, on other banking institutions and on nonbank financial institutions. The Central Bank of Brazil does not extend credit to non-financial public enterprises.

The liability items are: reserve money, money market instruments, liabilities for Central Bank - securities, restricted deposits, foreign liabilities, long-term foreign liabilities, National Treasury deposits, capital accounts and other items.

Data on the narrow monetary base (and its components: currency issued and bank reserves) and the broad monetary base (and its components: narrow monetary base, required cash reserves, and custody positions in federal government securities, both of the Central Bank of Brazil and of the National Treasury) are published in the monthly Central Bank Bulletin and in the Press Release.

Periodicity

 Monthly

Timeliness

 The analytical accounts of the monetary authority are produced and published 2 weeks after the end of the reference month, available in the Central Bank Bulletin and on Central Bank's website:
http://www.bcb.gov.br
Access by the Public

Advance dissemination of release calendar

 An advance release calendar that gives one quarter ahead notice of the precise release dates is published on the website of the Central Bank of Brazil (http://www.bcb.gov.br/sddsi/calendar_i.htm ) and on the IMF’s Data Dissemination Standards Bulletin Board (http://dsbb.imf.org). A calendar for the entire following year is published on each December issue of the Central Bank Press Release and on Central Bank's website:

http://www.bcb.gov.br

Simultaneous release to all interested parties

 Data published in the Press Release (monetary base) and in the monthly Bulletin (Central Bank accounts) are made available to all interested parties at the same time on the Central Bank of Brazil's website on the Internet (http://www.bcb.gov.br ). These documents are also available to all at the Central Bank's library.
Integrity

Dissemination of terms and conditions under which official statistics are produced, including those relating to confidentiality of individual responses

 The Central Bank of Brazil compiles and publishes monetary and financial statistics pursuant to the legislation in force, specifically the Law establishing the Central Bank (Law Nr. 4595 of Dec. 31st, 1964) and the National Monetary Council resolutions, governing the generation and release of data and information, in particular with regard to the confidentiality of data.

The Central Bank guarantees the confidentiality of the data relating to individuals and institutions, in observance of the established in Article 38 of the Law Nr. 4595.

The Law Nr. 4595, the National Monetary Council resolutions, and other rules issued by the Central Bank of Brazil, as well as other legislation, can be found in Portuguese on the Central Bank's Internet page:

http://www.bcb.gov.br/mPag.asp?cod=106&Perfil=1&codP=0

These laws are available to the public in Portuguese at the Internet page of the Presidency of the Republic, under search of decrees and laws

http://www.planalto.gov.br.

Identification of internal government access to data before release

  

Identification of ministerial commentary on the occasion of statistical releases

 The data are released without ministerial comment. The only comments in the document released are those of the Central Bank.

Provision of information about revision and advance notice of major changes in methodology

 Data for the analytical accounts of the Central Bank of Brazil are final, except those related to balance sheet closing periods (June and December). Data for broad monetary base may be reviewed as a result of calculation of custody positions in federal government securities.

Significant conceptual and methodological changes are described in special notes in the monthly Central Bank Bulletin in which such changes are introduced. Less important changes or methodological details are presented in footnotes to the relevant tables. Changes that compromise temporal comparisons of published data are indicated in all publications in which the affected series appear.
Quality

Dissemination of documentation on methodology and sources used in preparing statistics

 Methodological comments are presented as explanatory notes in the monthly Bulletin. Information on the comparability of statistical series is also published in explanatory notes in the monthly Bulletin.

Dissemination of component detail, reconcilliations with related data, and statistical frameworks that support statistical cross-checks and provide assurance of reasonableness

  

Notes

 Summary page on observance and transition plan

 

Dissemination Formats
Hardcopy
X X News release Central Bank Press Release is published in Portuguese and English and is available free of charge.
    Weekly bulletin  
    Monthly bulletin The Central Bank Bulletins (on Central Bank analytical accounts) are available in Portuguese and in English at the Central Bank's library or by paid subscription from: DEMAP/DISUP/SUIMP
SIG - Quadra 8 – Lote 2025
70610-400 Brasilia (DF) - Brasil

Telephone 55 61 3344-1554
Fax          55 61 3344-2982
e-mail: demap.disup@bcb.gov.br

The cost is R$ 19.05 per issue.
    Quarterly bulletin  
    Other  
Electronic media
X   On-line country bulletin board or database  
X   Internet address

Data published in the monthly Central Bank Bulletin (on Central Bank analytical accounts) are available on the Central Bank of Brazil's website in the Internet
http://www.bcb.gov.br/?BULLETINCR

Data published in the Central Bank Press Release (on monetary base) is available on the Central Bank of Brazil's website in the Internet:
http://www.bcb.gov.br/?OPERATIONS
X   Diskette  
    CD ROM  
    Other  
 

Summary Methodology
Analytical framework, concepts, definitions, and classifications (including reference to applicable guidelines)
Consolidated Data on the Monetary Authority The analytical accounts of the Central Bank are divided into two groups. One represents assets, the other liabilities. Accounting data are reclassified to facilitate economic interpretation in accordance with internationally accepted standards.

Assets include the following accounts: Foreign Assets, Claims on Central Government, Claims on State and Local Governments, Claims on Private Sector, Claims on Deposit Money Banks, Claims on Other Banking Institutions, and Claims on Nonbank Financial Institutions.

Liabilities include the following accounts: Reserve money (of which the volume of currency outside deposit money banks is shown separately), money market instruments, Liabilities for Central Bank-Securities, Restricted Deposits, Foreign Liabilities, Long-term Foreign Liabilities, Central Government Deposits, Capital Accounts, and Other Items.

  • Foreign Assets – comprises liquid and short-term assets, gold included, positions in the IMF, current assets and SDRs, advance notice deposits, fixed and short-term deposits, government bills and discount notes, among other assets.

  • Claims on Central Government – the main items are National Treasury securities in the portfolio of the Central Bank of Brazil. This portfolio is held with the purpose of implementing monetary policy.

  • Claims on State and Local Governments – corresponds to securities of state and municipal treasuries in the portfolio of the Central Bank of Brazil, including free portfolio securities and those associated with repurchase agreements.

  • Claims on Private Sector – corresponds to residual positions of securities that were accepted for payment of debts, besides patrimony positions in Stock Market Brazilian Institute (IBMEC).

  • Claims on Deposit Money Banks – includes financial assistance granted for liquidity, rediscount operation, credits granted under the heading of financial system restructuring programs and financing consequent upon resale agreements with federal securities.

  • Claims on Other Banking Institutions – includes financial assistance granted for liquidity, rediscount and credits consequent upon resale agreements with federal securities.

  • Claims on Nonbank Financial Institutions – corresponds to securities that were accepted from nonbank financial institutions for the negotiation of debts and credits consequent upon resale agreements with federal securities.

  • Reserve Money – comprises currency issued and bank deposits. The main bank deposits refer to banking reserves, compulsory deposits stemming from shortfalls in targeted lending by the financial system and compulsory deposits of mutual funds, which were excluded on August, 1999. It also includes liabilities consequent upon repurchase agreements with deposit money banks, other banking institutions and nonbank financial istitutions. Following reserve money data, the volume of currency held by the public is shown separately.

  • Money market instruments - it corresponds to liabilities consequent upon repurchase agreements with the private sector, state and local governments and nonfinancial public enterprises.
  • Liabilities for Central Bank Securities – represents the value of securities issued by the Central Bank of Brazil that are in circulation outside the Central Bank. Pursuant Complementary Law Nº 101, dated 5.4.2000 (Fiscal Responsibility Law) issuing of public securities by Central Bank as of May, 2002 has been prohibited.
  • Restricted Deposits – corresponds to the proceeds of foreign loans deposited with the Central Bank of Brazil pursuant to regulatory provisions in force in Brazil, as well as the interest on such loans. Though denominated in foreign currencies, these deposits are made and withdrawn in local currency, so that there is no activity in the correspondent’s account abroad.
  • Foreign Liabilities – includes only those that are short-term, such as the accounts representing credit from the IMF and liabilities for Reciprocal Payment and Credit Agreement - a counterbalance system among central banks of several countries in Latin America target at facilitating trade transactions.
  • Long-term Foreign Liabilities – included under this heading are restructuring operations of the external debt and those registered in foreign currencies to be liquidated.
  • National Treasury Deposits – refers mostly to the single account maintained by the National Treasury with the Central Bank of Brazil for the receipt of tax and non-tax funds, in which activity occurs by order of the Treasury.
  • Capital Accounts – includes the Central Bank of Brazil's own funds, broken down into capital, reserves, provisions and Allocations of Special Drawing Rights (SDR).

  • Other Items (Net) – corresponds to the net position of other asset and liability accounts for which it is not possible to identify the counterpart sector.

Narrow Monetary Base and Broad Monetary Base

The Monetary Base corresponds to the monetary liabilities of the Central Bank, also known as Primary Currency Issue. It includes all currency issued and the funds in the "Bank Reserves" account.

The Broad Monetary Base concept was introduced following implementation of the Real Plan, on the assumption that broader aggregates correlate better with prices in the Brazilian economy, as they more accurately reflect the capacity for substitution between money, narrowly defined, and other financial assets. It includes, in addition to the narrow monetary base, liabilities of the Central Bank of Brazil and the National Treasury—more precisely, funds kept in required cash deposits and custody positions in federal securities, whether of the Central Bank or of the National Treasury. Custody positions are the result of adding up the portfolio positions to net financing positions of federal securities granted by Monetary Authority and the positions referred to in Resolution 2308 (8/28/96). LBC-E securities are excluded from Central Bank securities.

In the analytical accounts of the Monetary Authority, data related to reserve money result from compilation of accounting data, according to the methodology proposed by IMF. Therefore, they are different from the monetary base, which is gathered for analytical purposes when carrying out the economic policy.
Scope of the data (coverage of, e.g., institutional units, transactions and stock, commodities, industries, and geographic areas)
Consolidated Data on the Monetary Authority

The data refer to the universe covered and originate in the accounting records of the Central Bank of Brazil and the international reserves, which is a consolidation of the foreign assets and liabilities of the public sector, including accounts of the National Treasury and the Central Bank of Brazil related to the function of Monetary Authority. In addition, extra-accounting documents are used for purposes of identifying the sectors related to commitment operations with federal securities.
Accounting conventions (e.g. time of recording, valuation methods)
Consolidated Data on the Monetary Authority

Revenue and expenditure are recorded on an accrual basis, with monthly periodicity.

Foreign assets and liabilities are converted at the exchange rates in effect on the date of the balance sheet and those with variable interest rates are adjusted according to the indices agreed on by contract or pursuant to legal and regulatory provisions. The investments in gold and foreign currency securities are daily adjusted using information released by the major international data services. The country’s international reserves are deposited in the Central Bank of Brazil pursuant to Law 4595 of 12/31/64.

Federal securities portfolio is divided into held up to maturity and trading securities. The securities classified as held up to maturity are registered by the updated purchasing cost and those classified as trading are evaluated according to their market value. The securities issued by the Central Bank are adjusted using the yield curve method.

The cash holdings of the Union are deposited in the Central Bank of Brazil under the provisions of the Federal Constitution. As of January 18, 1999, these cash holdings have been daily remunerated by the weighted average rate obtained from the intrinsic yield of the Treasury securities of the Central Bank portfolio, pursuant to Provisional Measure 1789 (12/29/98).

Narrow Monetary Base and Broad Monetary Base

The original data used to calculate the narrow monetary base are recorded on an accrual basis. The broad monetary base is calculated including accounting and non-accounting data.
Nature of the basic data (e.g., administrative records, surveys censuses, combinations of these)
The data come from two sets of internal information at the Central Bank of Brazil. The first includes the balance sheet and adjusted balance sheet of the institution. The second is produced by the Balance of Payments Division of the Department of Economics – DEPEC/DIBAP, which is a consolidation of foreign assets and liabilities of the public sector, including accounts of the National Treasury and the Central Bank of Brazil related to the function of Monetary Authority. The third one refers to non-accounting documents provided by the Open Market Operations Department (Demab). These documents are used to identify the sectors related to commitment operations with federal securities.
Compilation practices (e.g., weighting schemes, imputation methods, balancing/cross-checking techniques)
In relation to the analytical accounts of the Central Bank, compilation procedures include reclassifying and regrouping the accounting categories, taking data from the foreign assets and liabilities in the international reserves and using non-accounting data to identify the sectors related to commitment operations with federal securities.

First, the accounting data are processed in such a way as to generate an analytical document, called BAMON, which regroups the accounts so as to permit direct extraction of the data in accord with previously established categories.

After the rearrangement of the daily accounting data from Central Bank, the Narrow Monetary Base and the Broad Monetary Base are calculated as follows:

A. Narrow Monetary Base

A.1 Formula

BMr = PME + RB

where

BMr = Narrow Monetary Base;
PME = Currency Issued (*); and
RB = Banking Reserve (**).

(*) The PME amounts are taken directly from the specific Daily Analytical Balance Sheet account in Central Bank.
(**) The Banking Reserve amounts are taken from the specific Daily Analytical Balance Sheet account in Central Bank and are calculated as follows:

  1. Basis: amount of demand deposits in commercial banks, multiservice and investment banks, banking reserves account holders and savings banks, subdivided into:
  • demand deposits and advance notice deposits
  • third-party funds in transit, collection and receipts of taxes and the like, banker's drafts, contracts for taking over liabilities linked to operations carried out in the country, liabilities consequent upon rendering of payment services, funds from guarantees executed and deposits for investment.
  1. Rate: 45% (Circular 3,199, dated 08.08.2003)

  2. Deductions:

c.1 - the rate is applied to the average of amounts subject to the deposit requirement registered in business days of two week period, with deduction of R$ 44 million.

c.2 – Other deductions:

  • payment orders in foreign currencies;

  • federal and state public financial institutions may deduct demand deposits, advance notice deposits and deposits for investments of the respective governments, government agencies, and mixed-economy firms in which they hold a majority interest; and

  • state public financial institutions may deduct demand deposits, advance notice deposits and deposits for investments of municipal public entities in the respective federative unit.

  1. The period for calculating the amounts subject to the deposit requirement and the transfer or adjustment consists, in each case, of the business days of two weeks.

  2. Financial institutions are exempted from depositing their quick liabilities if they are R$ 10,000 or less.

  3. The deposit requirement on demand resources must be complied with exclusively in cash.

  4. Financial institution cash resources up to the limit of 40% of claims of reserve requirements on demand resources - which have been calculated through levying the 45% rate on the data base - may be used to comply with the above mentioned reserve requirement.

  5. At the end of each day, the financial institution must maintain a Banking Reserves balance of at least 80 percent of the required reserve calculated for the respective activity period.

A.2 – Operating procedures

Daily data from the Central Bank accounting system, which are used to calculate the restricted monetary base, are considered final after its calculation procedure.

B. Broad Monetary Base

B.1 – Formula

BMa = BMr + DC + TPF

where

BMa = Broad Monetary Base;

BMr = Narrow Monetary Base;

DC = Mandatory cash deposits; and

TPF = Custody position in Central Bank (except LBC-E) and National Treasury securities.

B.2 – Operating procedures

Broad monetary base data are considered definitive provided that the restricted monetary base is final and if the other components of the broad monetary base are final.
Other aspects (e.g., seasonal adjustment, disclosure avoidance, base years, reference years, transformations from fiscal to calendar years)