Resolution JPRM-2023-016-A: Reforming the Operating Regulations of the Monetary Policy and Regulation Board

RESOLUTION NO. JPRM-2023-016-A MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador stipulates that public servants and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 ibidem states that Public Administration constitutes a service to the community governed by principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 ut supra determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Function and will be implemented through the Central Bank of Ecuador;

That, Article 47.1 of the Organic Monetary and Financial Code created the Monetary Policy and Regulation Board as part of the Executive Function, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determined its composition;

That, Article 47.6 ibidem, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: “1. Formulate policy in the monetary sphere and monitor its application by the Central Bank of Ecuador to preserve the integrity and sustainability of the dollarization monetary system and the financial system, in accordance with the provisions of this Code; (…) 24. Issue the operating regulations of the Monetary Policy and Regulation Board; (…)”;

That, Article 128 of the Organic Administrative Code, regarding normative acts of an administrative nature, states: “It is any unilateral declaration made in the exercise of administrative competence that produces general legal effects, which is not exhausted by its compliance and directly”;

That, Article 4 of the Organic Law of Citizen Participation, as one of the principles of citizen participation, establishes public deliberation, defined as “(…) the public and reasoned exchange of arguments, as well as, the dialogic processing of relationships and conflicts between society and the State, as the basis of citizen participation”;

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That, through Executive Decree No. 1204, of December 4, 2020, the Constitutional President of the Republic declared the improvement of regulation as state policy with the aim of ensuring adequate governmental regulatory management, improving the population's quality of life, fostering competitiveness and entrepreneurship, promoting efficiency in the economy, and guaranteeing transparency and legal security;

That, through Resolution No. JPRM-2021-003-A, of November 4, 2021, issued by the Monetary Policy and Regulation Board, the “Operating Regulations of the Monetary Policy and Regulation Board” were issued;

That, within the framework of citizen participation, it becomes necessary to stimulate the knowledge, socialization, and discussion of monetary policy projects;

That, the Monetary Policy and Regulation Board, in an ordinary session with in-person modality, on September 28, 2023, reviewed the proposal sent via Memorandum No. BCE-BCE-2023-0221-M, of September 15, 2023, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board, as well as the legal report No. BCE-CGJ-060-2023, of September 14, 2023; and,

In exercise of its powers and in attention to Article 47.7 of the Organic Monetary and Financial Code, the Monetary Policy and Regulation Board resolves:

REFORM THE OPERATING REGULATIONS OF THE MONETARY POLICY AND REGULATION BOARD ISSUED THROUGH RESOLUTION NO. JPRM-2021-003-A, OF NOVEMBER 4, 2021

Article 1.- Incorporate, following the last paragraph of Article 8 of Resolution No. JPRM-2021-003-A, the following paragraphs:

“Upon request by its President or one of its members, considering the relevance of the topic to be addressed, the Monetary Policy and Regulation Board may establish that any policy or regulation project, prior to its approval process, be submitted to public consultation with citizens and public and private actors, in order to gather observations, comments, inputs, or suggestions that enrich its treatment. The adopted decision will order the publication of an excerpt of the policy or regulation project on the website of the Central Bank of Ecuador, establishing a peremptory deadline to receive contributions, which shall not be less than seven days nor more than thirty days.

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Without prejudice to what is established in this article, the Monetary Policy and Regulation Board may adopt other initiatives aimed at socializing and guaranteeing citizen participation in the formulation of public policies, such as the holding of technical workshops, discussions, working groups, among others.”

Article 2.- Incorporate, following Article 8 of Resolution No. JPRM-2021-003-A, the following article:

“Article 8.1.- Public consultation process for policy or regulation projects: During the period established by the Monetary Policy and Regulation Board, observations, comments, inputs, or suggestions regarding the regulation project will be received in the manner and means determined for this purpose. The reception and systematization of citizen observations will be the responsibility of the Administrative Secretariat of the Monetary Policy and Regulation Board. Proposals submitted to the Monetary Policy and Regulation Board must necessarily contain the identification information of the sender and must deal exclusively with the subject matter of the policy or regulation project put out for public consultation. All documents or information considered necessary to support or motivate the observations, comments, or suggestions made to the regulatory project may be attached. Once the deadline for receiving observations has concluded, the Administrative Secretariat will send to the Central Bank of Ecuador the proposals that have met the established requirements, so that, within a term of fifteen days, a technical-legal report is issued in which the observations are evaluated, the technical and legal viability and pertinence are analyzed; and, the Monetary Policy and Regulation Board is recommended whether or not to incorporate the contributions into the policy or regulation project under analysis. The observations or comments received in this stage are not binding, and the Monetary Policy and Regulation Board may, based on its regulatory competence, accept or not accept the comments that have been sent and admitted within the public consultation period.”

SINGLE TRANSITORY PROVISION.- The Central Bank of Ecuador, through the General Coordination of Planning and Strategic Management, within a term of sixty (60) days, will establish and execute a plan for the implementation of this resolution.

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FINAL PROVISION.- This resolution will enter into force as of the present date, without prejudice to its publication in the Official Register. The Director of Document Management and Archives is tasked with its publication on the institutional website of the Central Bank of Ecuador. NOTIFY. - Given in the Metropolitan District of Quito, on September 28, 2023. THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on September 28, 2023.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO