The Central Bank of Chile, like the Office of the Comptroller General, was created in 1925 on the recommendation of the financial mission to Chile headed by United States banking official Edwin Walter Kemmerer. The Central Bank was charged with printing money and controlling its circulation. Its authority over the country's monetary policy increased gradually over the years. The 1980 constitution elevates the Central Bank to constitutional status as an "autonomous" state organ to be governed by an organic constitutional law (Law 18,840). The military government was concerned that the Central Bank be insulated from political pressures to ensure that sound monetary policies were followed. The regime was reacting in part to the common practice of earlier years, particularly under the UP government, when public expenditures were financed with direct and indirect loans from the Central Bank, fueling budget deficits and inflation.
The Central Bank is governed by the five-member Central Bank Council appointed by the president, with the consent of the Senate, on a staggered basis. Each member serves ten years and can be reappointed. The president of the Central Bank is selected from among the council members to serve for five years.
Data as of March 1994