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.
Why are foreign reserves important for the country?
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.
