Central Bank of Chile

The Central Bank of Chile or Banco Central de Chile was established on August 22, 1925 as per the decree law No.486. The whole procedure was performed during the reign of the then President, Arturo Alessandri Palma. The bank is a totally independent entity and cannot be governed by the Superintendent of Banks and Financial Institutions, or General Comptroller of the Republic.
Rodrigo Vergara is the bank governor.

Central Bank of Chile – Values:
Following are the major values of the Banco Central de Chile:

  • Commitment
  • Integrity
  • Respect
  • Transparency
  • Excellence

Central Bank of Chile – Institutional Framework:
The Banco Central de Chile has been granted constitutional status by the Article 97 of Chapter XII of Chile�s present constitution. According to this law the bank will have its own equity and its separate composition, functions, organization and characteristics that have to be determined by its own constitution.

Following are some limitations of the central bank:

  • Cannot acquire or guarantee papers that are issued by the national government or entities related to it
  • It cannot, in any way, provide financial support to governmental expenses with the exception of external problems and wars. These expenses, though, have to be ratified by the National Security Council
  • It cannot adopt rules or regulations that are discriminatory in nature and can affect the operations of financial organizations that operate in similar domains

The objectives of the Banco Central de Chile may be mentioned as below:

  • To make sure that the currency stays stable
  • Promotion of safe and effective performance of the financial markets and make payments in currency and other forms to ensure that
  • To ensure that the international and domestic payments are done normally
  • Prevention of risks related to international and domestic payments and proper management of resources of the Fiscal Agents
  • To maintain a proper macroeconomic balance and to create policies that help in achieving such aims
  • To help everyone understand the financial and economic decisions of the bank � this will be done through reports, and macroeconomic studies
  • To restrict the yearly inflation to approximately 3 percent
  • To complete its social commitments properly. Examples include the Free Competition Tribunal, the Monetary Fund, and the Commission on Distortions

Central Bank of Chile – Policies:
The Banco Central de Chile plays an important role in determining the following policies of Chile:

  • Monetary policy
  • Financial policy
  • Foreign exchange policy

Central Bank of Chile – Functions:
The functions of the Central Bank of Chile may be mentioned as below:

  • Issuing bank notes and coins
  • Functioning as a fiscal agent
  • Controlling the monetary credit and circulation
  • Participating in international financial matters
  • Administering the capital markets and the overall financial system
  • Facilitating operations related to foreign exchange
  • To make sure the financial system stays consistent
  • Statistical operations

Central Bank of Chile – Divisions:
Following are the various divisions and sub-divisions of the Banco Central de Chile:

  1. Financial � Economic Group:
    1. Studies
    2. Financial Operations
    3. Financial Policy
    4. Treasury
  2. Audit and Legal Counsel Group:
    1. General Counsel�s Office
    2. General Auditor�s Office
  3. Corporate Services Group:
    1. Institutional Services and Management
    2. Institutional Affairs
    3. Human Resources
    4. Risk Assessment and Management
    5. Informatics

Central Bank of Chile – Constitution:
The Banco Central de Chile operates as per the Law 18,840 Basic Constitutional Act of the Central Bank of Chile. It covers the following aspects:

  • Nature, capital, purpose, and domicile
  • Claim procedures and publicity
  • Administration and supervision
  • Surpluses and financial statements
  • Operations and authority
  • Staff and personnel
  • Penalties
  • Miscellaneous provisions

Central Bank of Chile – Publications:
The Banco Central de Chile brings out the following study-based publications:

  • Boos series on central banking
  • Economic policy papers
  • Working papers
  • Bibliography of Chilean economy
  • Journal Economia Chilena

The economic statistics based documents published by the Chilean central bank may be mentioned as below:

  • Short-run indicators
  • Revision studies
  • Statistical databases
  • The Chilean Economy at a Glance
  • Economic indicators
  • Special Data Dissemination Standard (SDDS) IMF
  • Advance release calendars

In the indicators segment information is offered on the following:

  • International economy
  • Employment, wages and demographics
  • Money and banking
  • External sector
  • National accounts
  • Foreign exchange and price
  • Sectorial indicators
  • Economic expectations

Central Bank of Chile – Banknotes and Coins:
The Banco Central de Chile prints banknotes in the following denominations:

  • 500 Pesos
  • 5000 Pesos
  • 1000 Pesos
  • 10000 Pesos
  • 2000 Pesos
  • 20000 Pesos

It issues coins in the denominations mentioned below:

  • 1 Peso
  • 50 Peso
  • 5 Peso
  • 100 Peso
  • 10 Peso
  • 500 Peso

Central Bank of Chile – Contact Details:
Following are the contact details of the Banco Central de Chile:
Agustinas 1180, Santiago, Chile
Phone: (56 2) 670 2000

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Last Updated on : 30th July 2013