Foreign Exchange (FX) Transactions Monitoring

The Central Bank of Colombia (BanRep) relies on granular foreign exchange (FX) transaction data to fulfil its mandates on monetary policy, exchange rate policy, financial stability, and market reporting. Before this project, BanRep faced several challenges in its data collection processes:

• Limited coverage: FX transaction data was collected mainly from regulated intermediaries (IMCs), excluding fintech firms and crypto exchanges active in the market.
• Fragmented systems: Multiple non-interoperable platforms hindered efficient data sharing and integration.
• Timeliness issues: Data was received with delays, affecting BanRep’s ability to respond to market changes.
• Operational inefficiencies: Manual processing steps created risks, increased costs for intermediaries, and slowed supervisory analysis.

DTS delivered a three-part engagement to help BanRep address these pain points: 1. Comprehensive diagnostic: We analysed existing data collection workflows, pain points, and technology gaps, identifying opportunities to increase efficiency, data timeliness, and market coverage. 2. Design Sprint: We brought together BanRep’s data, supervision, and IT teams in a collaborative sprint to co-design a SupTech proof of concept (PoC) for real-time monitoring of FX transactions, integrating data from IMCs, fintechs, and crypto platforms. 3. Blueprint for implementation: We produced a detailed report outlining the business case, technical specifications, and project charter, including change management recommendations and guidelines for scaling the solution.

This engagement laid the foundation for a modernised FX data collection and monitoring system, helping BanRep reduce manual burdens, close coverage gaps, and improve the timeliness and quality of FX market intelligence. The PoC created during the project serves as a stepping stone for future deployment of a fully integrated SupTech solution, aligning BanRep’s data capabilities with the demands of a rapidly evolving FX market.