Bank of the Republic functions

08.02.2016 08:51

Administration of International Reserves

It manage  the country’s international reserves, investment, safekeeping and disposal of reserve benefits. Investment takes place principally by following the criteria of security and liquidity with the aim of facilitating national payments abroad.

Banker of banks

the Banco de la República acts as last resort lender to credit institutions in the event of a temporary lack of liquidity caused by the massive departure of deposits.

Credit Functions of the Banco de la República

Prohibits the offering credits and securities to private individuals and entities.Excepting the temporary assistance credits to credit institutions with liquidity problems, in fulfilment of the Bank’s role as lender of last resort.

Foreign Exchange Functions

The Bank should participate in the drafting and definition of policy regarding foreign exchange rate and the flow of international capital.

Fiscal Agent and Trustee

The Banco de la República may act as fiscal agent in the negotiation of external and internal credits upon Government request and if such action is compatible with the Bank’s objectives.

Issue of Legal Tender

The currency-issuing attribute, characteristic of the Nation’s monetary sovereignty, is exclusive to the Banco de la República and can not be delegated. This attribute has materialised by means of various contracts, with the authorisation of Congress.

Promoter of Scientific, Social and Cultural Development

The professional expertise and operating structure of the Bank has enabled it to support simultaneously the scientific, social and cultural development of the country through the creation of foundations designed to select, finance and otherwise stimulate research

The Board of Directors’ Report to the Congress

It has the obligation of the Board of Directors of the Bank to provide a Report to Congress,