The National Monetary Council ¹ is the major institution of the National Financial System (SFN) . The CMN is in charge of formulating monetary and credit policies, aiming to preserve Brazilian monetary stability, and to promote economic and social development.

The Council was created on December 31, 1964 by Law No. 4,595. Through the years, the Council has made subsequent modifications in its composition, when compared to the original provision. It is presently composed of the following members [Law No. 9,069/1995 - amended]:

• The Minister of Finance (chairperson)
• The Minister of Planning and Budget (chairperson)
• The Governor of the Central Bank of Brazil (BCB)

The CMN meets once a month, at least, in order to deliberate about currency and finance-related issues. Specifically, the CMN's legal objectives are:

• Coordinate monetary, credit, budget, fiscal, and the internal and external public debt-related policies. It is worth mentioning that the targets for monetary policy are set by the CMN, and the BCB is in charge of conducting monetary policy as necessary to achieve those targets [Law No. 179/2021].
  
• Issue guidelines for the application of resources by financial institutions, whether public or private; with a view to providing favorable conditions for the harmonious development of the national economy across the different regions of the country.
• Encourage the improvement of financial institutions and instruments, with a view to greater efficiency in the payment system and resource mobilization.
• Ensure the liquidity and solvency of financial institutions.