By: Alfredo Roque
On August 26, 2022, was published in the Official Gazette La Gaceta, the Certification of Resolution of the Ordinary Session No.53 of the Board of Directors of the Central Bank of Nicaragua, which approves Resolution No. CD-BCN-LIII-1-22, which establishes the Reform number CD-BCN-II-1-13, on the policy for the Administration of the Gross International Reserves (RIB) of the BCN.
The resolution amends subsection “a” of article 5 of said policy, as well as articles 6, 18, 19, 22 and 23, respectively, updating the integration and operation of the Reserves Administration Committee (CAR), through the withdrawal of the power to invite Bank officials as advisors.
In the same sense, it adjusts the functions of the RAC to the current risk, liquidity, and profitability criteria, and adds an investment tranche for the fulfillment of foreign payment obligations, defining the terms of such tranches, called Other Assets tranche, whose purpose is to manage those assets not included in the other tranches (liquidity and investment), but which are part of the NCB’s reserve assets.
Among the other reforms is the updating of the instruments and terms of the investment tranche, it empowers the Reserves Administration Committee (CAR) to authorize early liquidation of investments and securities acquired under considerations established in this policy and modifies the parameters for managing the foreign exchange risk of currencies that make up the Gross International Reserves (RIB).
For more information on this and other legal issues, please contact LatinAlliance Nicaragua, Abogados y Notarios at the following email address: aroque@latinalliance.co