The Board of Directors of the Central Bank and the Financial Superintendent analyzed the recent developments of the economic and financial situation in the external front in the context of the current global health emergency
The Minister of Finance, the Governor of Banco de la República (the Central Bank of Colombia), and the Financial Superintendent hereby inform that:
The members of the Board of Directors of Banco de la República, the Minister of Finance and Public Credit, and the Financial Superintendent of Colombia met earlier today to analyze the economic and financial situation following the recent external developments, the fall in the price of oil, and the deterioration exhibited by international financial markets amidst the international health emergency.
The Governor briefed the participants on the main conclusions of the Global Economic Meeting, the teleconference convened by the Bank for International Settlements which had taken place previously. In the conference, the world's major central banks, including those from emerging markets, shared the current development of their economies at the present juncture, the fronts in which they have been working, and the coordination mechanisms adopted.
After analyzing the available information, the Colombian authorities considered that:
- The fundamentals of the Colombian economy remain strong and allow to absorb the external shocks herein described without severe effects on real activity and financial stability.
- The financial system exhibits adequate solvency, liquidity, and risk management indicators, and is capable of absorbing significant market risk, liquidity, and credit shocks, which are permanently being simulated by the Committee for the Coordination and Follow-Up of the Financial System.
- Global conditions have deteriorated rapidly, and the exchange rate is responding as expected to these changes.
- The following fronts will be monitored continuously: liquidity and volatility of the foreign exchange market; conditions of domestic and external liquidity; and possible fiscal implications.
- The authorities will adopt appropriate actions in a coordinated manner; decisions will be announced jointly and in a timely manner.