Instruments for Foreign Exchange Interventions

Banco de la República may intervene in the foreign exchange market through any of the following instruments: 

• Intervention through the auction of options for the purchase or sale of US dollars to the Central Bank, in order to control exchange-rate volatility. 
• Intervention through discretionary auctions of US dollars put options to the Bank, for the accumulation of international reserves. 
• Intervention through discretionary auctions of US dollars call options to the Bank, for deaccumulation of international reserves. 
• Discretionary intervention through purchases or direct sales of US dollars of the Bank in the foreign exchange market. 
• Intervention through competitive auctions for the purchase of US dollars in the foreign exchange market. 

The characteristics of the instruments for intervention in the foreign exchange market can be found in the Regulatory Letter DODM-143, corresponding to the Subject 5: Banco de la República´s Intervention in the Foreign Exchange Market.