*  *  Introduction  The rapid expansion of the world economy in recent years has contributed to the positive performance of the Colombian economy, but has also created new and diverse economic policy challenges. I would like to highlight the following challenges: •  To continue reducing inflation and to keep economic growth at a sustainable level.
Since the level of the reference rate directly influences the local currency term structure of interest rates, if a price of the majority of financial instruments is not related to the movement of the local currency reference rate (but rather to the movement of LIBOR, EURIBOR or other international rates), the effectiveness of the local currency reference rate as a major monetary policy tool is lower and its movements need to be more volatile to produce the same results compared to a less dollarized financial system (i.e.