Banco de la República reinforces Liquidity Supply

With the purpose of reinforcing the adequate supply of liquidity to the economy and support the credit supply required by corporations and households, at its meeting today, the Board of Directors of the Central Bank of Colombia (BDBR) decided to maintain the REPO collateralized with bank credit claims indefinitely. That is to say, fortnightly auctions of REPOS with collateralized with bank credit claims will continue for as long as deemed necessary. In the past, the Board had authorized these auctions for a maximum accumulated amount of COP 6.3 billion.

Additionally, the Board decided to carry out REPOS with public debt instruments with one year maturity and nine months maturity every two weeks, in those weeks in which no repos of bank credit claims are auctioned. The first auction of one year maturity will take place on Thursday, 2 July for one trillion pesos. The non-allotted amount will be offered on 3 July with a nine-month maturity. These long-term auctions will also be held as deemed necessary.

As for liquidity in foreign currency, Banco de la República will continue to offer Non-Delivery Forward contracts during July through auctions for amounts equivalent to those maturing every day. In addition, considering that external liquidity has improved and that FX-swaps auctions were not in demand, the BDBR decided not to continue with these auctions. These contracts will be offered again when deemed necessary.

The Board of Directors also authorized FINDETER's access to all transitory expansion facilities available.