February 25, 2024
When did the reference price appear and why is TR used?

When did the reference price appear and why is TR used?

There was a critical period in the history of our country when inflation eroded Brazilian money in a terrible way. This continued almost throughout the 80s and 90s.In an effort to combat this evil, many economic plans and measures were taken, among which was the creation of the famous TR reference rate.

However, it remains to this day and according to its value, Affects some financial investments and financing.

Want to understand more about this topic? So keep reading and enjoy the text!

Reference price date

The modified The signal emerged as an attempt to combat hyperinflation in the 1990s, and was launched in 1991, at the start of Fernando Collor de Mello’s government.

Its task was to correct prices based on a future indicator, as the old model was considered the past.

It was as if Brazilian money had always been “walking” away from inflation, which at the time was ridiculous.

Thus, TR has sought to anticipate this movement, ensuring that Brazilian purchasing power is maintained for a longer period of time.

Therefore, the savings income account changed at that time, as it was previously referred to as interest.

With the adoption of the new model, the savings started to generate 0.5% per month added to the TR return. This means tremendous progress.

To give you an idea, in the month following its creation (in February 1991), TR generated 7% returns. Thus, the return on savings in that month alone was 7.5%.

As shown in the image below, TR produced a total of over 160% in 1991 alone, and in November of the same year, the return was over 30%.

TR . income start date:

Source: Reproduction of discount with data from the Central Bank

In the following years, TR remained high due to hyperinflation, but saw a significant decline from July 1994, five months after the real plan was implemented.

With relative financial control in place, there is no longer any need to keep TR at such a high level. Thus, the savings rules underwent further changes only in 2012.

Why did the reference rate go up again?

With the changes in savings profitability that came into effect in 2012, TR was linked as additional income to savings at the Selic rate.

Therefore, your income will only increase if the state’s base interest rate (Selic) is 8.5% or more per year. This is the standard prevailing today.

Under the current rule, if the Selic rate is less than 8.5% per annum, the savings yield will be 70% of its value. Only if Selic rises above 8.5% annually, does TR play its role.

This is when it returns to the old yield, i.e. 0.5% per month plus TR (it is worth noting that TR is set daily by the central bank itself).

Well, that’s what happened at the Copom meeting on December 8, 2021, when the Selic rate was raised from 7.75% per annum to 9.25%.

From there, TR, which had been zero since September 2017, was valued again and closed in December 2021 at 0.0488%.

TR variance will no longer be zero in 2022:

  • 01/2022 = 0.0605%;
  • 02/2022 = 0.0000%,
  • 03/2022 = 0.0971%;
  • 04/2022 = 0.0555%;
  • 05/2022 = 0.1663%;
  • 06/2022 = 0.1484%;
  • 07/2022 = 0.1631%;
  • 08/2022 = 0.2409%;
  • 09/2022 = 0.1805%.

What titles did TR refer to?

There are not many financial products attached to the reference rate. Perhaps the reason is its low value these days.

It is worth noting that when the calculation gives a negative result, it is considered zero.

Thus, the two main financial instruments associated with TR are the savings account and FGTS. see below.


A savings account needs no introduction and Brazilians have known it for years.

Unfortunately, it went through a lot of turmoil in the 1990s, namely in the government that created TR. However, with the increase of TR, the savings start to be realized more.


The other financial instrument associated with the reference rate is the FGTS. His meager income of 3% per annum is added to the TR when it is not zero, but it is still an insult to the worker.

With an inflation rate of 10% per year, having an income of just over 3% per year means losing purchasing power in a serious way, such as expenses Also formed in this case.

It is a real insult to what is being done to this resource that is compulsorily deposited to workers by employers in the FGTS.

Even because the employee can’t spend when he wants, or the way he wants.

Rather, it is difficult to say that money is his property, because he cannot control it as he sees fit.

How does TR affect investments and financing?

Obviously, we can understand that when TR is set to zero, it will have no effect. Whether it is an investment or a financing.

However, when its value is high, its effects appear. For those who have financial investments, income earners, they will start to earn more.

Who has any Mortgage Linked to TR, your payment will be more expensive. Unfortunately, if the contract is signed on this condition, it is inevitable.

Good news for those with this type of Finance is that the effect is not significant, as TR is set at very low levels.

Curiously enough, this same news is bad for the rentier, because despite having an “extra” in his profitability, he will still lose out on all other applications in the Brazilian financial market.

Practical example of TR

To give you an idea: Imagine that someone invested R$1,000 in savings since the beginning of the year.

Its total income as of September 2019 was about R$1,045.91, excluding TR.

With TR, this same investment will have a bottom line of R$1057.54 so far.

Is TR counting more beneficial? Yes, of course. But it’s good to remember that investing in a smart treasury will yield greater returns, even with income tax collection.

For those who pay a MortgageThe adjustment will be made in installments automatically. But since each case is individual, premiums are many and TR is calculated daily, it is impossible to run a simulation.

What is certain is that this type of financing will be more expensive. Therefore, pay attention to this kind of items if you intend to join the purchase private house using this negotiating method.

Did you like this article? Then find more knowledge by reading the text about Federal Mortgage Options Caixa Economica!