Free Essays,College Free Essays,Free College Essays at Anti Essays

Peter Miranda
ID 12290
Principles of Macroeconomics
May 4th, 2008
Central Bank Role


The Central Reserve Bank of El Salvador (CRB) has committed its efforts to fulfill its mission to safeguard the stability of prices, convertibility of its currency, control and/or regulation of other monetary variables, stability and development of the Salvadoran financial system, in order to contribute to the macroeconomic stability of the country.

The Central Reserve Bank faces a new challenge in its work with the approval and effect of the Monetary Integration Law (MIL) in January 2001. The MIL modifies and abrogates some articles of the Central Reserve Bank Organic Law. It also performs new functions. Therefore, the current Central Bank legal framework, which sets forth its functions, is provided for by its Organic Law with the modifications of the MIL.
At this time, the Central Reserve Bank carries out its functions in three areas: Public Finance, Financial System and Monetary Stability.
In the area of public finance, the CRB keeps its functions as a financial agent to the government and it provides economic and financial consultancy services. In its first function, it supports the structuring and placement of the country’s debt in the international markets. This support was of great value in the successful placements carried out during 2002, and it lead to the country’s being granted the award "Best Latin America Issuer of the Year," granted by England’s International Financial Review (IFR) in January 2003.
Additionally, it provides services of treasury, administration of current accounts, custody of securities, operations of liquidation and payment, local and international transfers and administration of liabilities. Likewise, the CRB provides consultancy to the GOES regarding economic policies, supporting it in financial programming, providing it with information on economy...