The Central Bank must contribute to the welfare of the population and ensure price stability

This Friday, May 13, the Constitutional Convention votes on the latest report from the Justice Systems Commission. In this way, everything approved goes to the new Harmonization Commission for its drafting and consistency with the text.

It was his last chance. In the previous plenary session, only its definition as an autonomous body had been dispatched to the draft of the constitutional proposal and about their accountability.

The commission had to reformulate the articles referring to the object of the Central Bank, as well as the norms referring to the Council. In the instance, the object that the body will have in article No. 38 was finally concluded.

Article 38.- Purpose of the Central Bank. “It will correspond in particular to the Central Bank, to contribute to the welfare of the population, ensure the stability of prices and the normal functioning of internal and external payments.

In order to fulfill its objectives, the Central Bank must consider financial stability, exchange rate volatility, job protection, care for the environment and natural heritage, and the principles established by the Constitution and the law.”

In the third paragraph of the article, it was approved that the Bank, when adopting its decisions, must take into account the general orientation of the government’s economic policy.”

Article No. 39 approved the powers that it will have, who must be in charge of “regulating the amount of money and credit in circulation, the execution of credit operations and international exchanges, as well as the dictation of regulations in monetary, credit, financial and international exchange matters, and others established by law.”


Check the PAUTA special where we update all the articles that get two thirds and that are incorporated into the draft of the new Constitution that will be presented to the Plebiscite.

A Council made up of seven members

It was resolved that the Council of the Central Bank will be made up of seven counselors appointed by the President of the Republic with the agreement of the new Congress of Deputies and the Chamber of Regions.

In article No. 42 it was established that they will have a duration of ten years without the possibility of re-election. Instead, the president of the Central Bank will last five years with the possibility of re-election, who will have the possibility of being re-elected.

Regarding the removal of the position, it was established in article No. 43 that they may be carried out with the prior request of the majority of those who exercise as directors, of the President of the Republic, of the majority of the members of the Congress of Deputies and Deputies or of the Chamber of Regions. In this way, “it can only be based on the circumstance that the affected director has carried out serious acts against public probity, or has incurred in any of the prohibitions or incompatibilities established in the Constitution or the law, or has concurred with his vote on decisions that seriously affect the achievement of the Bank’s purpose”.


The 2022 Constitution proposal already stands as the most extensive in the history of Chile, with more than 290 articles.

From the right, although they valued the efforts to improve the Central Bank chapter, they criticized the section on removal.

“A bad design remained. The parliamentary majority is empowered to request the dismissal of any of the directors based on a very broad cause, which is not well defined, and which contrasts with the current system to request the responsibility of the directors , where only the President today can ask for their dismissal based on much more demanding grounds than there is direct damage to the economy from certain decisions of the Bank”, commented the conventional Ruggero Cozzi (RN).

He also commented that this will be harmed in practice, where “parliamentarians will be able to allow parliamentarians to exert political pressure on the Central Bank’s advisers.”


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