At a meeting today, the Board of Directors of Banco de la República Decided on the Following:

1.      A marginal reserve ratio was imposed on each type of local currency liability in amounts that exceed the level registered on May 7. The following percentages apply:

• 27% for checking accounts and other checkable deposits
• 12.5% for savings accounts and similar deposits
• 5% for certificates of deposit maturing in less than 18 months and similar time deposits.

This marginal reserve earns no interest.

The external debt deposit stipulated in External Resolution 08/ 2000 was reinstated. It will come to 40% of the disbursed amount, calculated at the representative market rate of exchange on the date the loan is furnished. The deposit will be held for six months.

The purpose is to facilitate monetary management in the midst of an economic situation characterized by a sharp increase in credit and aggregate demand that could jeopardize the inflation target and the stability of the financial system.

The leveraged position of derivative operations by foreign exchange market intermediaries was limited to 500% of their technical capital.  In this case, the goal is to reduce the risk to foreign exchange market intermediaries by restricting their leverage possibilities to hedge positions.