Colombia's central bank, Banco de la República, has set new exchange rules, including the removal of an obligation for citizens to report foreign assets and operations to the regulator, according to a May 25 statement.
Under the new rules, such information is only to be reported to the country's tax authorities. The regulator also modified a cap for cash exchange transactions to $10,000 from $3,000 previously, El Colombiano reported.
The central bank said the new rules are meant to make exchange operations flexible and efficient, minimize risks and preserve "the non-dollarization principle of the economy, financial stability and the effectiveness and autonomy of monetary policy."
Separately, Banco de la República also announced that the International Monetary Fund approved a two-year flexible credit line for Colombia in an amount equivalent to about $11.4 billion, while canceling its previous financing arrangement with the country.
Juan José Echavarría, the governor of the central bank, said the loan reflected a recognition from the IMF that the country's macro policy is
"well-managed" and was "especially relevant" at the moment due to the recent struggles of Argentina and other emerging economies on currency markets, according to the El Colombiano report.
