Integrated liquidity market
The Integrated Liquidity Market (MIL) is an electronic platform operated by the Central Bank of Costa Rica (BCCR) through which financial institutions, such as banks, cooperatives, and mutual societies, lend to and borrow from one another on a short-term basis in a rapid and secure manner. MIL’s primary function is to ensure that all participating entities have sufficient liquidity to meet their daily obligations and serve their clients without disruption. This platform provides the BCCR with a direct channel to the National Financial System for the implementation of its monetary policy in the money market.
The Central Bank of Costa Rica uses this instrument to influence the cost of money in the economy. Through this market, the BCCR sends clear signals regarding its inflation objectives: if the Bank wants interest rates to rise or fall, it intervenes in the Integrated Liquidity Market to adjust the amount of money in circulation. This helps keep the interest rates paid by individuals on loans and earned on savings at levels consistent with a stable economy and orderly growth.
Although this market involves only authorized financial institutions, its proper functioning benefits the Costa Rican population as a whole. An efficient MIL ensures the smooth operation of the country’s payment system and supports the Central Bank’s ability to preserve the value of colones. Credit transactions in this market range from 1 to 180 days and are conducted in both domestic and foreign currency through the National Electronic Payment System (SINPE) platform, in accordance with the Payment System Regulations.