Exchange Rate Policy, Foreign Exchange Market and Derivatives

In light of recent news on gold sales from the foreign reserves, Banco de la República (the Central Bank of Colombia) informs that:

Banco de la República (the Central Bank of Colombia, BR) hereby informs that in May 2020 it did not make purchases or sales of TES B in the market, and that it carried out a debt swap…

In its session today, the Board of Directors of the Central Bank of Colombia, in an extraordinary session, with the Financial Superintendent as guest attendant, adopted a set of measures addressed at strengthening the liquidity of the payments system in the context of the current extreme global…

Banco de la República (BR) hereby informs that it did not perform any purchase or sale of foreign currency in the exchange market in December 2019.

During the same month, BR did not make definitive purchases or sales of TES B in the market. However, the TES portfolio reduced due to a…

The Board of Directors of Banco de la República decided to end the program of accumulation of reserves announced in September 2018. It considers that the current level of international reserves and the expected result of the renegotiation of the Flexible Credit Line with the IMF will cover the…

Two FX policy issues are discussed based on the recent Colombian experience. First, the increased participation of foreign investors in local bond markets since 2014 induced a reassessment of international reserve adequacy. We present the resulting LCR-type methodology to evaluate…

For this decision, the Board mainly took into account the following information:

Starting June 2019, the information disclosed after each session of the Board of Directors of the Central Bank in which decisions are taken on the benchmark interest rate will be modified. This change is intended to improve the information related to the monetary policy decision-making process…

Below is the description provided by the technical staff of the Central Bank on macroeconomic conditions, their projections, and risks for the meeting of the Board of Directors on 21 June 2019.

A regular meeting of the Board of Directors of Banco de la República was held in the city of Bogotá D.C. on Friday, 21 June 2019. In attendance were Alberto Carrasquilla Barrera, Minister of Finance and Public Credit; Juan José Echavarría, Governor of the Central Bank; and Board Members Gerardo…

The Board of Directors mainly took into consideration the following information:

The Board of Directors of Banco de la República decided in its meeting today to suspend the program of accumulation of international reserves started in September 2018 in order to assess the impact of this program on the behavior of the foreign exchange market given the current environment.

In the last year (to April 2019), government deposits at the Central Bank of Colombia have increased by COP $7.6 trillion. This movement generates a monetary contraction. It is the Central Bank's role to provide the liquidity required by the economy in the terms and conditions it deems…

The Board of Directors of Banco de la República, in its meeting today, unanimously decided to maintain the benchmark interest rate at 4.25%

The Board took into consideration the following information:

At its meeting today, the Board of Directors of the Central Bank decided to continue with its program for the accumulation of international reserves.

The upcoming auction of the program for the accumulation of international reserves through PUT  options will be held on 30 April 2019,…

A regular meeting of the Board of Directors of Banco de la República took place in the city of Bogotá D.C. on Friday, March 22, 2019. In attendance were Alberto Carrasquilla Barrera, Minister of Finance and Public Credit; Juan José Echavarría, Governor of the Central Bank; and Board Members…