The Colombian Monetary System is built up by a director an many people creating a board of executives. It has three basic goals: reaching levels of interest, capital, and reaching monetary standards. The three objectives are the ones that the Banco Central de Colombia tries to reach everyday. The institution similar to the FED would be this institution because it is separate from the Colombian government. In the system the policies that govern would be monetary policies such as loans. The objective of the system is to find stability in prices and in exportation and importation with other countries. The benefit of the central bank for people is that by loans they provide homes for the people that is unemployed or poor.
The risk is that all the factors and the objectives are directly proportional so when inflation happens, everything is altered at the same kind of rate most of the times. The monetary unit of the country is the peso and it has a different value than the US dollar. That would be the structure, the policies and the way that the Colombian monetary system functions.
Link of the webpage:
http://www.banrep.gov.co/docum/ftp/borra097.pdf
Citation:
Banco de Colombia. N.P., n.d. Web. 4 Apr. 2014
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