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6. CASH AND CASH EQUIVALENTS

12 Months Ended

Dec. 31, 2020

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

6.	CASH AND CASH EQUIVALENTS

		2020				2019
Bank accounts			93				210
Cash equivalents
Bank deposit certificates (CDBs) (1)			1,416				290
Overnight (2)			171				36
			1,587				326
			1,680				536

(1)

Bank Deposit Certificates (CDBs), accrued interest at 50% to 108%, of the CDI Rate (Interbank deposit rates) published by the Custody and Settlement Chamber (Cetip) in 2020 (80% to 106% in 2019 and 40% to 106% in 2018). For these CDBs, the Company has repo transactions which state, on their trading notes, the bank’s commitment to repurchase the security, on demand, on the maturity date of the transaction, or earlier.

(2)

Overnight transactions are repos available for redemption on the following day. They are usually backed by Treasury Bills, Notes or Bonds and referenced to a pre-fixed rate of 1.89% in 2020 (4.39%, in 2019 and 6.39% in 2018). Their purpose is to settle the short-term obligations of the Company, or to be used in the acquisition of other assets with better return to replenish the portfolio.

Note 31 provides information in relation to the exposure of the Company to interest rate risks, and a sensitivity analysis of their effects on financial assets and liabilities.