Colombian Monetary System

Colombia, the most beautiful country in the world. The best landscapes, the best food, the best people, and the happiest country in the world. This is it. But you are not here to read about why Colombia is the best country in the world but to understand its monetary system. "Zeitgeist Addendum Colombiano"

The monetary system works around El Banco de la República which is the one that manages and it is the only central bank in Colombia as the Federal Reserve in the US. This bank was founded in 1923 and since its birth it has been the one in charge national monetary policy, which means they control the inflation, money emission, etc. And its clients are the rest of the banks in the nation, which their function is to give money to the Banco de la República so they keep it as reserve.

The monetary system of Colombia is essentially single-unit based, with the unit of Colombian money being called the Peso. The money is the tool for this bank to analyze the economic activity in the nation and by this term we are not referring to who is rich or poor but how the money moves. The effects from these are social, political and economical. Money makes transactions easier and represents the economic traffic in relation with the laws and the demand. So basically the Banco de la República controls our Colombian economy and money practically belongs to it.


Sources:

• http://coins.about.com/od/worldcoins/ig/World-Coins-Gallery-Index/Columbia-Money-Coins.html
• http://www.slideshare.net/INOCENCIOMELENDEZJUL/analisis-del-sistema-monetario-en-colombia-inocencio-melendez-julio