Preguntas frecuentes

Questions related to the coin exchange

Where can the public purchase the commemorative coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day?

The commemorative coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day will be available to the public as of 21 June 2023 and may be purchased at Banco de la República’s (the Central Bank of Colombia) branches throughout the country. The coin is delivered in an acrylic capsule and includes a leaflet explaining its design and features.

To purchase the commemorative coin, the user must book an appointment in advance. To this end, Banco de la República has made available to the public an external platform so that those interested in exchanging the coin can book the place, day, and time online at the Banco de la República’s branches that have stocks at the time of booking. And to make the exchange, you only need to attend the appointment with the evidence of the booking, your identity card, and the cash. 

Can I purchase the commemorative coins at Banco de la República’s facilities without an appointment?

This is not possible. It is mandatory to book an appointment through the platform to exchange the coins. If you arrive without an appointment, you will not be allowed to enter, nor will you be assisted.

Can I exchange the coin in a different city after purchasing it in another city?

Yes, as long as you have not exceeded the maximum number of coins allowed for exchange, which in this case is 3 coins per user. The coin can be exchanged at any of the Banco de la República’s branches in the country. 

What do I do if I am not in one of the cities where I can exchange the coin?

Commemorative coins can only be exchanged at Banco de la República’s branches in the Colombian territory that have stock and appointments available.

If I am abroad, how can I purchase the coin?

Commemorative coins can only be exchanged in person at Banco de la República’s branches.

Why can’t I exchange the coin virtually and have it delivered to my home?

Commemorative coins are securities on which there is a restriction on sending them by courier service.

Can someone else exchange the coins for me?

No, the exchange of coins is a personal and non-transferable service. Therefore, only the person who registered for the appointment will be assisted. Do not forget to bring your registered identity card and the appointment confirmation e-mail you received (virtual or printed).

If I am a Colombian citizen, can I register with my passport?

No, the citizenship card is the only valid identity document for Colombian citizens. The passport only applies to foreigners who wish to exchange the commemorative coin.

What do I do if I have lost my citizenship card or identity card or if it has been stolen?  

You can make the appointment with your citizenship card number and bring the report evidence or the temporary document.

Why can’t a minor exchange the coin?

The Treasury Department’s current regulations establish as a requirement for cash exchange transactions at the Treasury counters the identification of the user through his/her citizenship card or password (first-time or duplicate procedure). This means that minors are not allowed to carry out this type of transaction, including the purchase of commemorative coins.

How do I register on the booking platform?

The external platform, available for online appointment booking, will ask you for an identity card and a valid and active e-mail, to which you will receive a code to validate the registration. Subsequently, you will receive the notifications of the scheduled appointment. Please note that if you are a Colombian citizen, you must register with your citizenship card number. And if you are a foreigner, you must register with your passport, foreign identity card, or temporary protection permit.

How can I check the place, day, and time of my appointment?

You can check your account on the booking platform cwhenever you need to by logging in with your username and password and selecting the “Ver historial”  (View History) option. You can also contact the Citizen Services System (SAC in Spanish) lines.

What happens if I cannot attend the appointment? Can I reschedule it?

The booking platform allows you to “Cancelar la cita” (Cancel appointment) and make a new one. However, please note that it is recommended to cancel at least one hour before the scheduled booking. If you do not cancel and do not attend, your reservation will only be cleared until the end of the day, so you will only be able to book a new appointment until the next day. 

What should I do if I enter the wrong information at the time of registration on the booking platform?

You must file the data update request through the Citizen Services System.

What should I do if I made a mistake when entering my e-mail address in the booking platform?

If the e-mail is incorrect, you will not receive the validation code and, therefore, you will not be able to finish the registration process, so you can start again. If you need further support, check the instructions to schedule an appointmen (only in Spanish).

To cancel the appointment, log in to the platform with your username and password and select “Ver historial” (View History). You can also cancel via the confirmation email. If you need further support, check the instructions to schedule an appointmen (only in Spanish).

What should I do if when I register on the booking platform it says that my identity document already exists, but it was not me who registered?

You must file the request for review through the Citizen Services System.

What should I do if I want to change my registered e-mail address?   

You must file the e-mail address update request through the Citizen Services System.

How can I file a complaint, claim, or suggestion related to coin exchange?

Banco de la República has a Citizen Services System to handle requests, complaints, claims, suggestions, and reports (PQR in Spanish). The channels through which you can submit your PQR are: i) on-site, ii) by telephone, iii) through an electronic form on the website, and iv) by e-mail to atencionalciudadano@banrep.gov.co.

Questions related to design, production, or the reason why Banco de la República (the Central Bank of Colombia) issues commemorative coins

How is Banco de la República requested to initiate the procedures to issue a commemorative coin?

Banco de la República is established as a legal entity of public law and constitutional status, with administrative, financial, and technical autonomy, subject to its own legal framework, established in Articles 371 to 373 of the Political Constitution, Law 31 of 1992, and its Bylaws - Decree 2520 of 1993, which performs Central Banking functions.  

Among such functions is that of acting as a bank of issue, whereby it exercises in an exclusive and non-delegable manner the state attribute of issuing the legal tender   constituted by banknotes and coins.

As stated in Article 9 of the aforementioned law: "Production and destruction of the species that constitute the legal tender. The printing, importation, minting, exchange, and destruction of the species that constitute the legal tender are specific and exclusive functions of Banco de la República, which it shall perform in accordance with the general regulations issued by its Board of Directors (...)." 

Likewise, pursuant to such a regime, Banco de la República is also authorized “to order the mintage of legal tender coins in the country or abroad for commemorative or numismatic purposes, as provided for in special laws, establish their alloys, and determine their features.” (Emphasis added), if it is a legal tender coin for commemorative or numismatic purposes, it must have been previously contemplated in a special law that so provides. 

In accordance with the above, Banco de la República proceeds to establish the necessary actions to comply with the special law that orders the mintage of a commemorative coin. 

Why does Banco de la República mint a commemorative coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day? Why is it made available to the public?

Banco de la República, in compliance with Law 2012 of 30 December 2019, considering that Article 7 established “Legal tender coin.” “Considering the 'Battle of Lake Maracaibo' and the declaration of 24 July as the Colombian Navy Day, authorize Banco de la República to design and issue for one time only a legal tender coin commemorating this patriotic achievement. Banco de la República shall include therein a figure allusive to the Institution and the coastal and maritime territories that enhances the mission in the next possible issue of legal tender (in accordance with the planning activities, budget, and approval by the Board of Directors of Banco de la República).” 

In view of Law 31 of 1992, Banco de la República is empowered to "order the mintage of legal tender coins in the country or abroad for commemorative or numismatic purposes, as provided for in special laws, establish their alloys, and determine their features". On 27 May 2022, the Board of Directors published​​​​​​​ External Resolution 7 of 27 May 2022, "Whereby it orders the mintage of the ten thousand-peso coin, commemorating the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day."

What elements are found on the obverse and reverse of the coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day?

The obverse shows the image of Admiral José Padilla López, and on the left side, the inscription "ALMIRANTE JOSÉ PADILLA LÓPEZ" (ADMIRAL JOSÉ PADILLA LÓPEZ), the phrase "Morir o ser libres" (To die or to be free), and the image of a ship with its sails unfurled, sailing the ocean. In the upper external part, the legend "200 AÑOS DE LA BATALLA NAVAL DE LAGO DE MARACAIBO" (Two centuries of the battle of Lake Maracaibo) is added concentrically. In the lower part and concentrically, the inscriptions "24 DE JULIO DÍA DE LA ARMADA DE COLOMBIA" (July 24, Colombian Navy day) and "1823-2023" and a rim with oblique lines. The reverse includes in the upper part the face value of the coin in Arabic numerals and the inscription "PESOS". In the central zone is added the coat of arms of the Navy of the Republic of Colombia surrounded by a rim with oblique lines, the mintage year "2023," and a latent image as a security feature that, depending on the angle from which it is viewed, reflects the initials "BR" (which stands for Banco de la República) or the Arabic numeral "10." In the lower part and concentrically, the legend "REPÚBLICA DE COLOMBIA" (Republic of Colombia). 

What are the features of the commemorative coin?

The coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day has a face value of COP$10,000, and 200,000 pieces were produced. The alloy will be composed of 65% ± 2 copper, 15% ± 2 nickel, and 20%± 2 zinc. It has a diameter of 35 millimeters ± 0.1 millimeters and an average weight of 21.75 grams ± 3%.

Who designed the commemorative coin of the Battle of Lake Maracaibo and the Declaration of 24 July as the Colombian Navy Day?

The design was made by Michelle Sáenz, a professional from the Department of Communication and Economic Education (DCEE in Spanish) of Banco de la República.

Why was the coin not produced at the Fábrica de Moneda (Mint) of Banco de la República?

Because the manufacture and quality of a commemorative coin require a challenging process that demands special effort and considering the high occupancy of the Mint in the production of the national currency and the time needed for the production of the commemorative coin, it was decided to rely on a third party. The coin was produced at the Mint of Poland (Mennica Polska).

1.       What are foreign reserves and what are their current levels?

Foreign reserves are liquid assets abroad controlled by the monetary authority. For an external asset to be considered as reserves, it must be under the direct and effective control of the monetary authority and must have an availability for immediate use. Maintaining international reserves facilitates the operation of Colombia´s international payments and the access of the Government and the private sector to international capital markets. As of August 31^st, 2018, net foreign reserves reached a value of 47,537 million dollars.


2.       What is the exchange rate regime in Colombia? What are its advantages?

In Colombia, the exchange rate regime is flexible. In a regime with exchange rate flexibility, the exchange rate operates as an adjustment variable in the face of shocks to the economy, reducing the volatility of interest rates and economic activity. Second, exchange rate flexibility allows the interest rate to be used independently as an instrument to bring inflation and output closer to their desired values. Third, exchange rate flexibility reduces the incentives to take excessive foreign exchange risk by the agents of the economy, which is vital for maintaining financial stability.


3.       Is there a level of equilibrium of the nominal or real exchange rate that the Board of Directors wants to achieve?

No. The announced program is not aimed at generating a depreciation of the currency.


4.       What is the FCL?

The flexible credit line (FCL) is an instrument created by the International Monetary Fund (IMF) for countries with very strong economic fundamentals and institutional frameworks of sound economic policy, with the purpose of providing support in episodes of external tension. Since it is restricted to countries with strong monetary policy frameworks, it does not imply any conditionality on the part of the IMF and its access is immediate. The FCL was approved by the IMF on May 25^th, 2018 for an amount of Special Drawing Rights (SDR) 7,848 million (approximately US $ 11,000 million).


5.       What does intervention in the exchange market imply for the monetary policy?

When buying international reserves, liquidity in the local currency is given  to the economy in  exchange for USD dollars. Sometimes this liquidity may be higher than the one that was going to be demanded from Banco de la República at the intervention interest rate. In these cases, to prevent the market interest rate from falling below the policy interest rate, the Central Bank must collect liquidity. This can be done through various instruments, such as deposits in the Central Bank from the Government or banks, or sale of the Central Bank´s portfolio of public bonds.


6.       What are reserve accumulation put options?

They are contracts that give the entities participating in the auction the option to sell dollars to Banco de la República at a later time as long as the exercise condition is met.


7.       How does the mechanism work?

In scenarios where the exercise condition is met, viz. when the current exchange rate (TRM) is below its moving average of the last 20 working days, the entities can deliver US dollars to Banco de la República in exchange for pesos, which are settled at the representative exchange rate of the current market. The options are of the American type, which means that entities can exercise their right to sell dollars to the BANREP at any time during the contract´s term and as long as the exercise condition is met. The first day that sales could potentially be made is on the business day after the auction. The option may be exercised totally or partially. In the case of partial use, the balance may be exercised any day of the remainder of the original term of the option in which the exercise condition is active.


8.       How does the auction scheme work?

The right to use the put option is acquired with the payment of a premium in legal currency, whose unit will be pesos for every thousand dollars. At the auction, Banco de la República receives the premium offered by the counterparts of the operations and these positions are ordered from highest to lowest. The auction cut rate is determined at the point where the total amounts demanded are equal to the amount offered. The rate of the last offer that would be assigned is applied to all other positions.


9.       What entities can come to Banco de la República´s options auctions?

In general terms, the entities that can buy the Banco de la República´s exchange intervention options are the banks, the financial corporations and the financing companies with technical equity equal to or greater than the minimum capital that must be accredited for the constitution of a financial corporation. Specifically, Banco de la República may sell the put options for the accumulation of reserves to the Intermediaries of the Exchange Market (IMC in Spanish) referred to in numeral 1 of article 8 of the Resolución Externa 1/18, that are registered in Banco de la República pursuant to article 7 of the aforementioned resolution, as well as with the Nation-Ministry of Finance and Public Credit. Additionally, these entities must maintain permanent instructions with Banco de la República in accordance with the provisions of numeral 6 of Circular Reglamentaria Externa DODM-143.


10.   Can the options be traded in the secondary market?

The options may be negotiated between agents authorized for these operations by sending SWIFT messages to Banco de la República as indicated in the Foreign Exchange Manual.


11.   What is the duration of the reserve accumulation program?

There is no predefined duration of the program and the Board of Directors of Banco de la República will evaluate it based on the available information.


12.   How many auctions will take place?

There is no predefined number of auctions and Board of Director of Banco de la República will evaluate it based on the available information.


13.   How often will the auctions take place?

Monthly.


14.   Why is this program going to be done through put options?

Because, as the statement says, the Bank seeks to accumulate reserves by minimizing the impact on the exchange rate.


15.   Are there concerns that the mechanism may generates devaluation pressures?

This program is not aimed at generating a depreciation of the currency. For this reason, the mechanism used to acquire the reserves will be the auction of put options to sell US dollars to Banco de la República. This prevents the Bank from making purchases in periods of upward pressure on the exchange rate.


16.   Is it going to be sterilized? How and when?

To guarantee the compatibility of the foreign exchange intervention with the target inflation strategy, the purchases and sales of foreign currency are sterilized. However, this is done only to the extent necessary to stabilize the short-term interest rate to the level that the Board of Directors of the Bank considers consistent with the fulfillment of the inflation targets and with the evolution of the output around its potential level.