The Andean Reserve Fund (FAR) was created in 1978 as a Regional Financing Arrangement (RFA), in response to the needs of Bolivia, Colombia, Ecuador, Peru and Venezuela to have their own financial institution, to address the problems resulting from the imbalances in the external sector of their economies and to facilitate the regional integration process. It became the second oldest RFA in the world.
FLAR currently offers three lines of credit or other financial support.
Balance of payments supports
Liquidity
Contingency
In 1989, based on the solid foundations of a fully operating body, FAR became the Latin American Reserve Fund (FLAR) due to the interest of the Andean countries in expanding the Andean Reserve Fund (FAR) to all Latin America. Thus, Costa Rica, Uruguay and Paraguay joined as FLAR member countries in 2001, 2008 and 2015 respectively, and in 2022 the Central Bank of Chile became a FLAR member as an Associate Central Bank.
FLAR contributes to the well-being of Latin America and the Caribbean by promoting macroeconomic and financial stability in the region.