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10.02.2016 08:04

Bank of the republic functions

1.Administration of International Reserves:

Administer the country’s international reserves, including management, investment, safekeeping and disposal of reserve assets.
looks for security and stability in its investment and endeavours to keep liquid reserves in order to ensure timely payments to other countries.
International reserves consist of freely convertible currencies, that is currencies that can legally be exchanged for other widely accepted currencies in the international market, either for gold or for Special Deposit Rights (SDR’s).

2.Banker of banks:

On one hand, it is the depository of the money allocated in fulfilment of the bank reserve requirements, which serve to regulate the credit-issuing capacity of the banking system.On the other hand,the Banco de la República acts as last resort lender to credit institutions in the event of a temporary lack of liquidity caused by the massive withdrawal of deposits.
the Banco de la República has made important contributions to the payment system and infrastructure of Colombia’s financial sector and to achieving the legal mandate of ensuring the normal functioning of internal and external payments.

3.Credit Functions of the Banco de la República:

The Goverment made a prohibition to offering products and securities to private entities, but if it does it, the goverment has to aprove it first.

4.Foreign Exchange Functions:

One of the Bank’s several functions is to organise and regulate the foreign exchange market and intervene in the market with the purpose of defending the exchange rate, in order to regulate the conditions of the country’s borrowing abroad.

5.Government Banker, Fiscal Agent and Trustee:

The Banco de la República fulfils these duties by receiving funds in deposit from the Nation and public entities under the conditions established by the Board of Directors. Furthermore, the Banco de la República may act as fiscal agent in the negotiation of external and internal credits upon Government request and if such action is compatible with the Bank’s objectives.

6.Issue of Legal Tender:

The currency-issuing attribute is exclusive to the Banco de la República and can not be delegated. This attribute has materialised by means of various contracts, with the authorisation of Congress.

7.Promoter of Scientific, Social and Cultural Development:

Support simultaneously the scientific, social and cultural development of the country through the creation of foundations designed to select, finance and otherwise stimulate research in the fields of sciences, technology, anthropology, archaeology, education, health and humanities.

8.The Board of Directors’ Report to the Congress: