Banco Central de Chile
| Headquarters | Santiago de Chile , Chile |
| founding | August 22, 1925 |
| president | Mario Marcel Cullell (Governor of the bank since 2016) |
| country | Chile |
| currency | |
| ISO 4217 | CLP |
| Currency reserves | US $ 40.538 billion (November 2019) |
| Website | |
| List of central banks | |
The Banco Central de Chile is the central bank of Chile with its headquarters in Santiago de Chile . It was originally founded in 1925 and has been incorporated into the current Chilean constitution as an autonomous institution of constitutional status. One of their main goals is to ensure price stability . Foreign exchange policy is guided by a flexible exchange rate system, although the bank reserves the right to intervene in the foreign exchange markets in an emergency to prevent the Chilean peso from appreciating or depreciating too much .
history
Private banks began to flourish in Chile from the mid-19th century, leading to growing concerns about the control of payment methods and persistent inflation. To this end, the government commissioned a commission headed by Edwin W. Kemmerer, Professor of Economics at Princeton University, and established the structure of the emerging central bank in one of the commission's proposals. In August 1925, the Banco Central de Chile was established by Decree 486, which also established the bank's monopoly on issuing banknotes under a gold standard regime. A degree of independence to avoid excessive influence from the public or private sector was implicit in his ten-member board structure.
However, inflation in the country remained high for a long time. It was also compounded by a weak institutional framework within the bank. Inflation could only be controlled after the constitutional independence of the bank in 1989.
structure
The Banco Central de Chile is run by a board of directors composed of five members who must be appointed by the President and confirmed by the Senate. Each term of office is ten years and members are elected every two years. The President appoints the Governor of the Board of Directors (and the Bank) from among the existing members for at least a period between the elected member's remaining term and five years. At least three members must be present for the board to operate, and the measures are taken with the support of the majority of the members present. The finance minister also takes part in board meetings with the right to speak and can, if there is no full consensus among the board members, suspend board decisions for 15 days.
Individual evidence
- ↑ Chile Foreign Exchange Reserves . tradingeconomics.com Accessed November 24, 2019 (English)
- ↑ Bank duties. Retrieved December 18, 2019 .
- ^ About the Central Bank - Banco Central de Chile. November 29, 2013, accessed December 18, 2019 .