The Banco de la Republica is the only bank in Colombia in charge of providing legal money around the country. It regulates the amount of money that can be circulating according to the economy. It is in charge of regulating the inflation and unemployment of the country. The clients of the Banco de la Republica are other banks that exist in Colombia. These banks give money to the Banco de la Republica in order to keep their money as a reserve in an account they have in it.
All of this different entities work together with the Banco de la Republica to create the Colombian Monetary System. They are all essential in keeping the balance and regulating the money use. The Banco de la Republica policies are the strategy of inflation, and taking decisions according to the actual state of the economy. These bank is similar to the U.S. monetary system because when the money goes through the bank it becomes legal. It is the only way it is legalized. What might be different between the Colombian Monetary System and the U.S. is the central bank is different and both have different methods.
"Politica Monetaria". Banco de la Republica de Colombia. Banco Central de Colombia. Colombia. April 4, 2014. http://www.banrep.gov.co/es/politica-monetaria
"Funciones del Banco de la Republica". Biblioteca Luis Angel Arango. Bogota. April 4, 2014. http://www.banrepcultural.org/blaavirtual/ayudadetareas/economia/econo85.htm
No comments:
Post a Comment