Benchmark Rate


TR means “Taxa Referencial” in Portuguese, which can be translated as “benchmark rate”. The TR has been created during the Collor II economic program to be Brazil’s most important index, a benchmark that  would be followed by markets to find interest rates to be practiced, without reflecting the inflation rates from a month before. TR is defined by the federal government and is the standard rate for indexing any contract longer than 90 days, as well as define the interest rates for savings accounts. It also works just like a Libor or Prime Rate.

TR is calculated based on TBF, a weighted monthly average between certificates of deposit from the country’s 30 largest financial institutions, excluding the two largest rates and the two smallest from the list ellaborated. In other words, that reflects the interest rates paid for certificates of deposit over a 30-35 days period. Also, a coefficient of reduction is deducted from the TBF for finding TR daily rates, excluding taxes and other “impurity” from the TBF index.

The coefficient takes the proportion between the work days for the considered period and the basis of 252 work days per year. That weighs the instabilities from the different number of work days on each month, reducing ups and downs between interests paid to savings accounts and certificates of deposit or similars.

The crucial use of the TR is getting the savings accounts financially up to date. If SELIC tax reaches less than 8.5% per year, savings accounts then pay the TR rates + 70% of SELIC tax. If SELIC exceeds 8.5% per year, then the savings accounts pay the TR + 0.5% per month.

TR is daily announced by the Central Bank in a statement. For getting acquainted with this information, search for “PortalBrasil” website on the internet:

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