A State-of-the-Art System
Brazil's financial system has been highly automated for more than a decade, but in April the country addressed remaining weaknesses in its payment infrastructure and now has global standards in place.
In April 2002, the Brazilian Central Bank adopted a new
regime that brings the country's payment and securities
settlement system in line with recommendations made by key
forums and associations such as G-30, BIS, CPSS-IOSCO Task
Force and ISSA1. This milestone is important because Brazil now
complies with international best practices and its payment
system now is, one of the most modern in the world.
Rather than take a gradual step-by-step approach to
reorganizing its payment and settlement infrastructure, the
Brazilian Central Bank adopted a leapfrogging strategy opting
to implement global standards benefiting from the international
experience. The Central Bank's strategy brought about a
significant and rapid reduction of systemic risk, as well as a
considerable improvement of safety and efficiency of the
Brazilian financial infrastructure, which now performs far
beyond the minimum standards required by the financial
Partially as a consequence of hyperinflation,...
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