6142 of December 29, 1962, authorized the central bank to promote and maintain favorable monetary, foreign exchange and credit conditions for the stability and development of the national economy.

Additional functions include controlling movements of the exchange rate and introducing resolutions pertaining to the financial system.

The BCRD implements all changes to banking regulation proposed by the Monetary Board (Junta Monetaria) which is the highest body of authority within the institution.

[6] Monetary policy during the 1990s was conducted within a framework of limited central bank autonomy and a managed floating exchange rate regime.

A key objective of the BCDR was price stability in conjunction with real output growth and reserve accumulation, such that the stock of BCRD net domestic assets became the targeted policy instrument.