The Board of Directors of Banco de la República announces an international reserve accumulation program
Seeking to strengthen the country’s external liquidity position, the Board of Directors of Banco de la República agreed at today’s meeting to begin a program to gradually accumulate up to USD 4 billion in international reserves.
International reserves provide a buffer that enables the country to meet its external obligations and respond to potential shocks originating in international financial markets. Maintaining adequate reserve levels helps strengthen confidence in the country’s external position and supports access to international financing.
The reserve accumulation mechanism will consist of put-option auctions. These options may be exercised only when the market exchange rate (TRM) falls below its 20-business-day moving average. In 2024, Banco de la República successfully implemented this mechanism, allowing the Bank to achieve the goal of accumulating nearly USD 1.5 billion in international reserves.
Put-option auctions will occur monthly, and the auction amount will be announced upon the announcement of each operation. Participants will pay a premium determined through a uniform-price auction. The exercise price of the options will be the market exchange rate (TMR) in effect on the exercise date.
The program aims to rebuild international reserves and serves as a precautionary measure. It also aligns with the current monetary policy stance. Banco de la República will use the necessary instruments to keep the economy’s short-term interest rate in line with the policy interest rate set by the Board.
The first auction announcement will be published on July 31, 2026, and the auction will take place on August 3, 2026. It has a maximum amount of USD 400 million. The awarded options may be exercised between August 4 and August 31, 2026, provided the exercise condition is met.
The rules governing these operations are set forth in External Regulatory Circular DOAM-143 and in the regulations applicable to Banco de la República's auction system (only in Spanish). Inquiries about the program may be directed to opciones-acumulacion@banrep.gov.co
