About TR

What is TR?

According to AbbreviationFinder, the Reference Rate (TR) is a reference interest rate widely used as an indicator for contracts or financial assets. This rate is calculated by the Central Bank of Brazil.

The TR emerged as a reference for interest rates in the Brazilian economy, being one of the instruments for controlling inflation. It was created during the Collor government in 1991, integrating a set of measures adopted by the “Collor II Plan”.

At the time it was created, the country was experiencing very high inflation and many contracts and investments indexed this inflation, generating even higher prices. TR was one of the ways the government of the time tried to use it so that the economy would no longer rely on such high rates.

Currently, TR is used more for the profitability of some financial investments, such as savings accounts or Treasury bills. TR is also used in monetary restatement of loans and FGTS.

Current Value of Reference Rate

The current and last years values ​​calculated for the TR of each month, as well as the accumulated in the year, can be seen in the table below:

Table TR (%)
Month year 2013 2014 2015 2016 2017 2018 2019 2020
January 0.0000 0.1126 0.0878 0.1320 0.1700 0.0000 0.0000 0.0000
February 0.0000 0.0537 0.0168 0.0957 0.0302 0.0000 0.0000 0.0000
March 0.0000 0.0266 0.1296 0.2168 0.1519 0.0000 0.0000 0.0000
April 0.0000 0.0459 0.1074 0.1304 0.0000 0.0000 0.0000 0.0000
May 0.0000 0.0604 0.1153 0.1533 0.0764 0.0000 0.0000
June 0.0000 0.0465 0.1813 0.2043 0.0536 0.0000 0.0000
July 0.0209 0.1054 0.2305 0.1621 0.0623 0.0000 0.0000
August 0.0000 0.0602 0.1867 0.2545 0.0509 0.0000 0.0000
September 0.0079 0.0873 0.1920 0.1575 0.0000 0.0000 0.0000
October 0.0920 0.1038 0.1790 0.1601 0.0000 0.0000 0.0000
November 0.0207 0.0483 0.1297 0.1428 0.0000 0.0000 0.0000
December 0.0494 0.1053 0.2250 0.1849 0.0000 0.0000 0.0000
Accumulated in the year 0.1910 0.8592 1.7954 2.0125 0.5967 0.0000 0.0000 0.0000

For previous years, and since the creation of the TR in 1991, the values ​​that have accumulated within each year appear in this table:

Table TR – annual accumulated values ​​(%)
Year Annual TR rate (%)
2011 1.2079
2010 0.6887
2009 0.7090
2008 1.6348
2007 1.4452
2006 2.0377
2005 2.8335
2004 1.8184
2003 4.6485
2002 2.8023
2001 2.2852
2000 2.0962
1999 5.7295
1998 7.7938
1997 9.7849
1996 9.5551
1995 31.6207
1994 951.19
1993 2474.73
1992 1156.22
1991 335.51

The Reference Rate is controlled by the Central Bank of Brazil and has remained at zero in recent years, as shown in the table.

It is worth remembering that if you need to update or correct a value with the TR, you can use the calculator offered by the Central Bank.

How TR is calculated by the Central Bank

The reference rate is defined by the Central Bank of Brazil (BACEN). To calculate the TR, the municipality is based on the interest rates of the National Treasury Bills traded on the government bond market.

Of these interest rates, Bacen calculates a weighted average and obtains a rate known as the Basic Financial Rate (TBF).

Before calculating the Referential Rate, the formula uses a reducer that is calculated as:

  • R = a + b × (TBF ÷ 100)

Where “a” is equal to 1.005 and the value of “b” is defined according to the value of the annualized TBF:

TBF (% aa) “B” value
Greater than 16.0 0.48
Less than or equal to 16.0 and greater than 15.0 0.44
Less than or equal to 15.0 and greater than 14.0 0.40
Less than or equal to 14.0 and greater than 13.0 0.36
Less than or equal to 13.0 and greater than or equal to 10.5 0.32
Less than 10.5 and greater than or equal to 10.0 0.31
Less than 10 and greater than or equal to 9.5 0.26
Less than 9.5 0.23

With the calculated reducer, Bacen defines the TR through the formula:

  • TR = [(((1 + TBF ÷ 100) ÷ R) – 1] x 100%

For this formula a maximum between zero and the value calculated by the formula with up to when decimal places is considered. Therefore, if the result is negative, the TR will be considered as zero.

How TR is used

The Referential Rate is widely used for monetary restatement or incorporated in financial investments. Among the most common examples are the savings account and the Severance Pay Fund (FGTS).

In savings, the TR is added to the Selic rate to define the return on financial investments. For those who deposited in the passbook before May 3, 2012, the assigned income is 0.5% per month plus the TR. After that date, the government changed the rule to the following conditions:

  • If the Selic rate is above 8.5% per year, savings income is set at 0.5% per month plus TR;
  • If the Selic rate is equal to or below 8.5% per year, the savings income corresponds to 70% of the Selic rate plus TR.

In the case of FGTS, the correction is made by adding a fixed amount of 3% per year. When the TR is zero, the fund receives only a 3% correction. In addition to this amount, the FGTS receives as earnings the profits obtained from the management of the fund.

In capitalization bonds, TR is also present, being the only rate that carries out monetary correction in this application.

Current Value of Reference Rate


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