ITCN Legal Advisor advocates continued use of the new note that has been in circulation in Brazil since September 2020

Central Bank not to withdraw R$ 200 banknote from circulation, according to new opinionNOTÍCIAS

The Central Bank (BC) will keep the R$200 bill in circulation in Brazil, according to the opinion of legal advisor Mariana Chaimovich of the Institute for Strategic Studies in Technology and Currency Cycle (ITCN), in an interview for ConJur.

Thus, according to the institution’s legal advisor, the Central Bank should not collect the new banknotes that have been in circulation in the country since the beginning of September 2020.

As recently requested by the Public Defender’s Office (DPU) and the Organization of the Blind of Brazil in a public civil action, the R$200 banknote should be withdrawn from circulation after being the same size as the R$20 note.

The Central Bank should withdraw a R$200 note from circulation or pay a daily fine of R$50,000
However, the ITCN argues that the R$200 bill should remain in circulation in the way it is being produced by the CB. In other words, for the institution, the size of the new banknote would not be a problem for the accessibility of visually impaired people.

R$200 note
The Central Bank officially launched the R$200 bill in Brazil on 2 September 2020. Since then, millions of copies have been put into circulation, moving the Brazilian economy with a new note.

However, the size of the R$200 note was the reason for a public civil action against the Central Bank. For the DPU, the new banknote was to be withdrawn from circulation and its production interrupted.

Payment of emergency aid runs the risk of deadlock at the Mint, which also affects the R$200 banknote.
The agency argues that the size of the R$200 note has the same measures as the R$20 note, which would make it difficult for people with some kind of visual impairment to recognize the money.

In the action, the DPU argues that the new note represents „discrimination“ against the visually impaired, who use the size of other notes to identify the money.

It also blames the Public Administration for presenting the note with the same size as the R$20 note in the public civil suit. On the other hand, the lawsuit foresees a daily fine of R$50,000, which may be charged by the Central Bank if the DPU’s request for withdrawal of the new note is accepted by the courts.

„The lack of identification of the new note by people with visual impairments characterizes discrimination on the part of the Public Administration.

New R$ 200 note has the maned wolf stamped on it (Reproduction/Facebook)

The banknote must remain in circulation
While the DPU requests the withdrawal of the R$200 note, the ITCN advocates the continued use of the note in the Brazilian economy. According to Mariana Chaimovich, the issue of money allowed the distribution of resources during the pandemic.

Thus, in an interview with ConJur, the legal advisor said it was necessary to create a new R$200 note in Brazil. For her, the note allowed the Central Bank to offer „cash money to everyone.

„The logistics for distributing a banknote throughout Brazil is a complex task, but the Central Bank ensured that the cash money would reach everyone, no matter where.

The ITCN’s legal advisor said that withdrawing the R$200 note from circulation, as requested by the DPU, could affect all cash distribution in Brazil.

„The withdrawal of the notes is a disservice to the distribution and capillarity of financial resources in our country.

Finally, the legal advisor attests that the new R$200 note presents resources that can be used in the identification of the banknote. According to Chaimovich, the difference in size is only one of several elements that differentiate the notes that are issued. Thus, there are marks that can be identified by touch on the new R$ 200 note, through three slanted bars that are on the note.

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