Central Bank of Chile

Abstract

The Central Bank of Chile was founded on August 22, 1925, during the government of Arturo Alessandri Palma. As of October 10, 1989, the Central Bank of Chile has been an autonomous technical body charged with ensuring the stability of the currency, that is, keeping the rate of inflation low and stable over time. It also promotes the stability and efficiency of the financial system, guaranteeing the normal functioning of internal and external payments. These objectives enable the creation of a predictable environment for decision-making, thereby contributing to smoothing economic cycles and laying the foundations for the country’s sustained growth. In order to meet its objectives, the Bank —among other duties— ought to regulate the amount of money in circulation and credit in the economy, so that they are sufficient for individuals, companies and institutions to carry out their transactions.