What is Selic interest rate in SAP FS-LOC-BR - Localization of Banking in Brazil?

SAP Term: Selic interest rate

• Component: FS-LOC-BR

• Component Name: Localization of Banking in Brazil

• Description: The base interest rate that Brazilian authorities determine via Selic for the national banking system. The Selic interest rate is an average of all interbank rates traded in government securities with a maturity of one day. This rate has an impact on interest charged on banking products in Brazil and is used as a reference for monetary policies.

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• Key Concepts: 
  The Selic interest rate is a benchmark rate used in Brazil to determine the cost of borrowing money. It is set by the Central Bank of Brazil and is used to calculate the interest rate for loans and other financial instruments. The FS-LOC-BR Localization of Banking in Brazil component of SAP is used to manage the calculation of the Selic interest rate. 
  
  How to use it: 
  The FS-LOC-BR Localization of Banking in Brazil component of SAP can be used to manage the calculation of the Selic interest rate. This component allows users to enter the current Selic interest rate, as well as any changes that may occur over time. The component also allows users to set up rules for calculating the interest rate on loans and other financial instruments based on the Selic rate. 
  
  Tips & Tricks: 
  When setting up rules for calculating the interest rate on loans and other financial instruments based on the Selic rate, it is important to consider any changes that may occur over time. This will ensure that your calculations are accurate and up-to-date. 
  
  Related Information: 
  For more information about the FS-LOC-BR Localization of Banking in Brazil component of SAP, please visit https://help.sap.com/viewer/product/FS_LOC_BR/latest/en-US.