Tools for exchange rate intervention


 

The Banco de la República offers a variety of intervention mechanisms, such as the following: 

 

  • Intervention by means of the automatic auction of options, giving the holder the right to sell or buy foreign exchange to or from the central bank, every time the [nominal] exchange rate deviates by 4% over the last 20 working days mobile average.
  • The Bank may intervene through option auctions, at its discretion, thereby allowing for the sale of foreign exchange to the Bank in order to accumulate international reserves. 
  • The Bank may intervene through option auctions, at its discretion, thereby allowing for the purchase of foreign exchange from the Bank in order not to accumulate international reserves.
  • The Bank, at its own discretion, may purchase or sell foreign exchange directly on the foreign exchange market
  • The Bank may intervene through competitive auctions to purchase foreign exchange in the foreign exchange market. 
 

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  • Español
  • English

This content has been translated into English for informational purposes. Upon any query regarding its interpretation or enforceability, the Spanish version shall be deemed official, and will prevail over the English version. The authors of specific texts such as working papers or articles select the language of publication; therefore, there might be cases in which the content may only be available in English. Este contenido ha sido traducido al inglés con fines informativos. En caso de duda sobre su interpretación y/o aplicación, se entenderá que la versión en español es la versión oficial y prevalecerá sobre aquella en inglés. Para casos particulares como documentos de trabajo o artículos, el idioma original de publicación es escogido por el autor, por lo cual puede haber casos en los que el contenido esté disponible sólo en inglés.