The president of the Central Reserve Bank, Julio Velardewent to the Budget Committee of the Congress of the Republic to express their opinion on the draft Public Sector Budget Law for Fiscal Year 2025. However, congressmen from leftist groups, showing their ignorance about the BCR, rebuked Velarde because his institution does not promote employment and exports, among other things.
LOOK: BCR: We need to keep the deficit under control or it will be expensive for us
Faced with ridiculous questions, Velarde did not lose his patience and explained like a child what the functions of the Central Reserve Bank were, even though one of the congressmen who asked the questions left without listening.
What is the BCR?
According to article 84 of the Constitution, the Central Reserve Bank It is responsible for preserving monetary stability. Its functions are to regulate the currency and credit of the financial system, manage the international reserves under its charge and other functions detailed in its organic law.
In that sense, the Central Bank is not in charge of promoting exports, employment, or other areas that correspond to ministries.
This institution is of utmost importance because it is in charge of issuing banknotes and coins.
During the 1980s, the BCR did not enjoy autonomy, which meant that it was used as petty cash by the Executive Branch every time state companies were created. This caused the BCR to print money without support, generating inflation.
After this tragic experience, the 1993 Constitution established that the BCR was prohibited from granting financing to the treasury. In addition, it was granted autonomy within its Organic Law. That is, it cannot be intervened by a State Power, nor by other institutions.
Likewise, the BCR is obliged to inform the country, accurately and periodically, about the State of national finances.
Who makes it up?
The BCR is made up of a seven-member board of directors. The Executive Branch appoints four, among them the President. Congress ratifies the president and chooses the remaining three with an absolute majority of the legal number. The term of the directors is the same as that of the President of the Republic, that is, five years.
Chairman of the Board of Directors: Julio Velarde (Since 2006)
Vice President of the Board of Directors: Carlos Augusto Oliva (Since 2021)
Director: Germán Alejandro Alarco Tosoni (Since 2021)
Director: Roxana María Irma Barrantes Cáceres (Since 2021)
Director: Inés Marylin Choy Chong (Since 2021)
Director: Diego Macera Poli (Since 2021)
Director: José Ignacio Távara Martín (Since 2021)
BCR Achievements
The monetary stability that characterizes Peru has been attributed to the professionalism with which the Central Reserve Bank has been managed. In September it was revealed that Peru, for 27 years, has been the Latin American country that has maintained its inflation in single digits for the longest time (February 1997 to August 2024).
Likewise, the International Monetary Fund revealed in May of this year that Peru is the country with the largest international reserves in Latin America, surpassing Brazil, Chile and Mexico. This has allowed the country to maintain its monetary stability even in critical moments such as the COVID-19 pandemic or during the severe political crises it has gone through in the last eight years.
These achievements have also been attributed to Julio Velarde, president of the BCR since 2006. He was appointed by former president Alan García and ratified by presidents Humala (2011), Kuczynski (2016) and Castillo (2021).
In 2020 and 2022 he was chosen as the Central Banker of the Americas by The Banker, from the Financial Times publishing group. Likewise, in 2015 he was awarded Central Banker of the Year worldwide.
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