Article 371 of the National Constitution states that Banco de la República shall carry out the functions of the Central Bank subject to the Law and in coordination with general economic policy. Therefore, Banco de la República will be responsible for the issuance of legal banknotes, amongst its other functions.
Articles 6 and 7 of Law 31 of 29 December, 1992 determined the basic rules regulating the issuance of banknotes and the minting of coins:
"Article 6.-Monetary Unity.- The monetary and accounting unit of the country is the peso which is issued by Banco de la República."
"Article 7.- Exercise of the Right of Issuance.- Banco de la República shall exercise the exclusive right of issuing legal money constituted by paper bills and metallic coins."
"Paragraph.- Paragraph.- Banco de la República has the right to choose whether the minting of legal metallic coins for commemorative numismatic events, established by special laws, is carried out in Colombia or in another country, as well as the right to establish the alloys used and to determine their characteristics."
The Board of Directors shall establish a special set of regulations for the organization of the Casa de la Moneda.