Bolsonaro Ends State Monopoly in Currency and Passport Production

RIO DE JANEIRO, BRAZIL – President Jair Bolsonaro signed a Provisional Measure on Tuesday, November 5th, that puts an end to the federal Mint’s monopoly on the manufacture of currency (paper money and metal coins) and passports.

As this is a Provisional Measure, the President’s decision regarding the Mint will become law as soon as it is published in the Federal Gazette; however, to be enacted as a statute, the text must be ratified by the National Congress.

The federal government has already stated that the measure will allow companies to be accredited by the Federal Treasury, so that other companies may make competing offers for production of currency and passport.

According to a text released by the Palácio do Planalto to the press, the Mint and private companies may compete, based on the lowest price, for the production and printing of paper money, coins, passports, postage stamps, and federal tax seals.

According to the Planalto, “in order to prevent the interruption of services,” the Mint will remain provisionally enabled until December 2021 to make these prints. However, within this time period, companies in the sector may become accredited and compete with the state-owned company.

The provisional measure provides for a different deadline for postage stamps and passports to enter into shared production– only after December 2023 will it come into effect.

Part of the production of paper money is shared in countries such as the United Kingdom, Canada, Switzerland, New Zealand, and Chile. In countries such as the United States, Japan, South Korea, Australia, and South Africa, the process of providing notes and coins remains fully nationalized.

Privatization

According to the presidential chief of staff, Onyx Lorenzoni, the project to privatize the Mint is still under consideration as part of the Investment Partnership Program (PPI), but the “modeling” is yet to be determined.

“It is one thing to break the monopoly, another to be part of the PPI. It is proceeding in the PPI, the studies continue,” he said.

Source: G1