Brazilian Senate Committee Advances Central Bank Financial Autonomy Bill Despite Lula Opposition

Brazil's Senate committee advanced a constitutional amendment on June 10 that would grant the central bank financial autonomy, allowing it to control its own budget for salaries and investments using income from its financial assets. The proposal, championed by Central Bank Governor Gabriel Galipolo and his predecessor Roberto Campos Neto, faces opposition from President Lula's leftist administration, which views it as a further loss of executive influence over the institution. The bill must pass two rounds in the full Senate before undergoing the same process in the lower house. Beyond financial autonomy, the amendment enshrines Brazil's Pix instant payment system in the constitution as an exclusive central bank function, effectively preventing privatization. The central bank argues the financial autonomy is necessary to address staff losses, expanding supervisory responsibilities, and technology investments, though the U.S. administration has criticized the bank's dual regulatory and operational role in Pix as an unfair trade practice.