ReutersSAO PAULO, Sept 11 (Reuters) - Brazilian lawmakers want to allow the central bank to keep gains from the nation's international reserves to improve transparency and address concerns that transferring the funds to the National Treasury is masking the size of the federal budget deficit, Valor Econômico said on Monday.
Under current rules, the central bank must transfer any profits from transactions involving foreign reserves and currency derivatives to the Treasury. In return, the Treasury hands over notes to cover any losses from such transactions.
That mechanism came under scrutiny in recent years as Brazil's budget gap widened. Some economists say the transfers masked the size of the federal budget deficit and reduced policy accountability.
The move highlights efforts by President Michel Temer to increase transparency and give more autonomy to central bank policymakers, after years of lax policies that helped drive Latin America's largest economy into the deepest recession in a century.
Temer's predecessor, leftist Dilma Rousseff, who was impeached for allegedly meddling with fiscal accounts, drew criticism from economists for blurring the lines between the federal government, state firms and the central bank in order to avoid breaking budget rules.
Ferraço's bill would also allow commercial banks to park reserves in excess of regulatory requirements at the central bank in exchange for a daily interest rate. That mechanism, known as excess reserves, is used by several central banks including the U.S. Federal Reserve and the European Central Bank (ECB) to carry out monetary policy.
Efforts to contact Ferraço were unsuccessful. He told the newspaper that the plan will have to be endorsed by fellow Senator Tasso Jereissati, president of the Senate's economic affairs committee.
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