ECB asks not to be seen as part of the non-financial system

The entity questions some points of the Public Finance Regulation Law.

The Central Bank of Ecuador (BCE) objected to the Public Finance Regulation Law by appearing in the project as part of the non-financial system.

The Central Bank manager, Verónica Artola, stated that this measure is not prudent and would affect the institution that is located along with the BEDE, BanEcuador or the Biess in that category.

Artola defended the entity’s work and she pointed out that it performs other functions such as managing the liquidity of the economy.

She also indicated that it would not be advisable for the Central Bank to be prevented from injecting liquidity into the economy through alternative instruments such as Central Bank securities, repos, among others, that could be done through public banks.

Regarding the convenience of carrying out operations similar to those carried out in the previous regime, in which the ECB injected more than USD 5 billion of liquidity into the State, the manager said that it was neither convenient nor healthy, because the level of reservations is very low.

The twenty-fifth transitory that talks about the creation of a platform to record the operations of the securities of the Ministry of Finance is another point that draws attention to the highest authority of the Central. The concern has to do with what the role of the Centralized Securities Depository of the ECB will be.

But not everything is questionable for Artola, as he supports the initiative to generate more tools for the use of electronic channels in money management.

She said that due to the pandemic, the population’s request for cash grew in March and these days in April, reaching a figure of at least about USD 900 million.

Given this situation, she clarified that this behavior of the population led the ECB to have to buy more tickets and therefore had to make a liquidity facility with the BIZ.

The official stated that to promote the use of electronic tools, it has been thought to facilitate the opening of basic accounts through cell phones.

In addition, she explained that a pilot plan would be started with some beneficiaries of the social bonds, in order for them to manage a debit card.

It is not ruled out that the ECB presents an alternative text to be analyzed by legislators as far as the institution is concerned.

Source: Assembly, ECB, social networks