Foreign reserves are the country’s holdings of strong foreign currencies (such as US dollars, euros, and others) that are managed by Banco de la República.
Foreign reserves are the country’s holdings of strong foreign currencies (such as US dollars, euros, and others) that are managed by Banco de la República.
The profits are the product of returns on foreign reserves, among other sources, including returns on public securities held by the Bank and interest that the Bank charges financial intermediaries for liquidity supply operations. The management of foreign reserves consists of investing them following the principles of security, liquidity, and profitability. Most of the reserves are invested in highly safe and easily sellable financial assets, such as government bonds and securities issued by government-related entities that are economically sound.
Foreign reserves play a fundamental role in the economy, and their main function is to protect the country when difficulties arise in accessing the foreign currency Colombia needs to make payments abroad. They function as a backup, allowing Colombia to meet its obligations (for example, imports or foreign-currency debts) and to generate international market confidence, facilitating access to credit and foreign investment.
As of December 31, 2025, net foreign reserves amounted to USD 66.3 billion. Banco de la República will transfer to the National Government in March approximately COP 13.9 trillion pesos in profits generated during its operations in 2025.
