Mediating transactions with government securities in matched operations (which allow the Brazilian Central Bank to regulate the daily money supply and interest) is the Dealer’s function
The Bank gets greater autonomy in managing its financial availabilities, thus it no longer depends on other dealers.
This Tuesday, August 8, the Brazilian Development Bank (BNDES) was invited by the Brazilian Central Bank, to act as Dealer of the Open Market Operations Department (DEMAB). BNDES has accepted the invitation and the start of its operations as Dealer will take place on Thursday, August 10, as reported on BC’s website
This is the first time BNDES will act as Dealer for BC, a status that is granted by the Brazilian Central Bank every six months to only 10 banks and two brokerage companies. The Dealer’s role is to mediate market transactions of the Brazilian Central Bank with government securities in matched operations, which allow the daily adjustment of the money supply and interest rates.
The invitation represents the recognition and trust of the Brazilian Central Bank with respect to the operational quality of BNDES, in terms of financial volume, efficiency and risk management and compliance.
The opportunity brings important advantages for BNDES. Firstly, the Bank gets greater autonomy in managing its financial availabilities, thus it no longer depends on other dealers. In addition, taking on the role of Dealer for BC contributes to a closer relationship with the Brazilian Central Bank and other financial institutions.