Monetary stability has an internal dimension (price stability) and an external dimension (exchange rate stability). Recently, the internal dimension of monetary stability - price stability - i.e. creation of low-inflation environment has become the primary objective of central banks. Achieving and maintaining monetary stability is the central bank's ongoing contribution to the creation of conditions for a sustainable economic growth. Central bank independence is a prerequisite for the implementation of monetary policy leading to price stability. The primary aim of monetary policy and the central bank's objective are laid down in the provisions of Article 98 of the Constitution of the Czech Republic and of Article 2 of Act No. 6/1993 Coll., on the Czech National Bank. These charge the Bank with maintaining price stability.
Introduction The Central Bank of Yemen was established in 1971. When the northern and southern sectors of Yemen reunited on 22 May 1990, the Central Bank of Yemen merged with the Bank of Yemen under the original name of 'Central Bank of Yemen'. The Central Bank of Yemen is an independent body created by Law to carry out all the functions of a normal central bank with the paramount objective of conducting monetary policy to keep inflation under control, stabilize the exchange rate of the national currency and promote investment and economic growth. The management of the Bank is entrusted to a Board of Directors with the Governor as chairman. The headquarters of the Central Bank of Yemen is in Sana'a. However it has a branch in each of the twenty Governorates of the country.
To contribute to Swaziland's national economic development through promotion of monetary stability and by fostering an environment which ensures a stable and a sound financial system.
Our Objectives:
The Bank seeks to achieve this mission by among other things:
promoting sound monetary policies within the framework of economic objectives. managing the exchange rate policy and the official reserves in the best interests of the country. safeguarding the integrity and efficiency of the financial sector; so as to enhance the quality of customer service. conducting research in economic matters particularly in national and international monetary issues. developing and motivating competent staff to handle the tasks required to fulfil its mission. monitoring good working relationships with domestic, regional and the international financial community.
Established in 1950 under the Monetary Law Act No.58 of 1949 (MLA), the Central Bank of Sri Lanka (CBSL) is the apex institution in the financial sector in Sri Lanka. It is a semi-autonomous body, governed by a three member Monetary Board, comprising the Governor of the Central Bank as Chairman, the Secretary to the Ministry of Finance and Planning and a third member appointed by the President of Sri Lanka.
As indicated in the MLA, the objectives of the Central Bank are the stabilisation of domestic monetary values, the preservation of the external stability of the Sri Lankan Rupee, the promotion and maintenance of a high level of production, employment and real income in Sri Lanka and the promotion of the full development of the productive resources of Sri Lanka. In its efforts to achieve these objectives, the CBSL performs not only the traditional functions of a central bank, but also plays a developmental role. It is the advisor to the Government of Sri Lanka (GOSL) on economic affairs and a banker to the GOSL, is responsible for the management of the public debt of the GOSL and the implementation of Exchange Control Regulations. It is the banker to commercial banks and is responsible for ensuring the stability of the financial sector. In addition, the CBSL is responsible for managing the country's main superannuation fund (the Employees' Provident Fund) and has a significant role in developing financial activities in the rural sector.
The Governor of the CBSL functions as its Chief Executive Officer. The Governor, two Deputy Governors and several Assistants to the Governor, who along with the Heads of departments form the senior management of the CBSL. Functionally, the CBSL presently consists of 25 Departments, each headed by a Director (or equivalent), reporting to a Deputy Governor. Two of these Departments - Economic Research and Bank Supervision - were explicitly set up under the original legislation establishing the CBSL, with certain statutory functions. The Economic Research Department is required to compile data and conduct economic research for the guidance of the Monetary Board and for the information of the public. The Department of Bank Supervision is required to engage in the continuous supervision and periodic examination of all banking institutions in Sri Lanka.
Address: Economic Research Department, Level 12, No: 30, Central Bank of Sri Lanka, Janadhipathi Mawatha, Colombo 01 Phone : 0094-1-477165 / 0094-1-477166 / 0094-1-477181 Fax : 0094-1-477712
The Central Bank of Nicaragua was created by Article 148 inc. 19 of the Constitution of 1950 through legislative decree no. 525 on the 25th of August, 1960.
It began operations January 1, 1961 as a state institution with operational autonomy, indefinite duration, independent funding and legal identity. It is governed by Article 99 of the current constitution which establishes that 'The Central Bank is the state regulator of the monetary system'.
In 1992, the legal framework of the bank was modernized through Executive Degree No. 42-92, 'The Basic Constitutional Law of the Central Bank of Nicaragua' which defines it as an autonomous, decentralized institution of the State, of technical character, of indefinite duration, with legal identity, independent funding and complete capacity to enter into legal contracts. The bank's home office is in the city of Managua.
Functions of the Central Bank The principal objective of the Central Bank of Lesotho is to achieve and maintain price stability. To attain this goal, the Bank performs a number of functions in accordance with the modern central banking practices. An important function of the Bank is to formulate and execute monetary policy for Lesotho. Other functions include issuing of currency, serving as a banker for the Lesotho Government and the commercial banks, acting as a custodian of the country's foreign reserves and supervision of financial institutions. It also acts as an advisor to the government on financial issues specifically, and more generally on macroeconomic issues.
1. 1. Formulation and Execution of Monetary Policy for Lesotho
The primary responsibility of the Central Bank of Lesotho is formulation and implementation of the country's monetary policy. In October 1998, the Monetary and Exchange Policy Technical Committee (MEPTC) was established. This was in recognition by the Bank's Management, of the need to develop and constantly review the framework for efficient monetary and exchange policy formulation and implementation to achieve the primary objective of price stability. The Committee consists of the Governors, Heads of Department and representatives from the relevant Divisions of the Bank.
The broad responsibilities of the MEPTC are to:
Ё Conduct technical analysis and make recommendations to the Board of Directors on matters relating to monetary and exchange policy in Lesotho; and
Ё Spearhead the implementation of all monetary and exchange policy decisions made by the Board.
2. 2. Supervision of Financial Institutions
One of the main responsibilities of the Central Bank of Lesotho is to ensure the financial strength and stability of the nation's banking system.
Through the Department of Supervision, and in accordance with the Financial Institutions Act of 1999, the Central Bank promotes the efficiency and effectiveness of the financial sector, ensuring the integrity of the financial system through proper licensing and supervision of financial institutions. The Bank conducts onsite examination and offsite surveillance to ensure adherence to the prudential requirements and proper functioning of the banking system.
In recognition of the need to develop and consistently review its programme for effective and efficient financial supervision, the Bank established the Bank Supervision Technical Committee (BSTC). The Committee plays an important advisory role with regard to supervisory issues. It comprises the Governor (as Chairman), Deputy Governors, Directors and senior officials of Supervision and Research Departments. The Committee meets once a week and is kept informed of all relevant supervisory activities.
3. 3. Foreign Reserves and Exchange Control
The Central Bank executes external payments on behalf of the Government of Lesotho, and the commercial banks.
Under the Department of International Finance, the Bank holds reserves with the objective of preserving the value of these reserves, providing liquidity to meet external payments for the Government, and earning a reasonable return on investments. The Bank is also responsible for executing the foreign exchange policy of government.
4. Financial Services
The Central Bank provides several important services to the Government and the commercial banks. As the banker for the Government, the Bank clears cheques drawn on the Treasury's account. It also acts as a fiscal agent for the Government through selling and redeeming of the Treasury Bills. In addition to provision of teller facilities to the Government and supplying of currency to commercial banks, the Central Bank operates a clearing house for participants in the clearing system. It further has the responsibility of ensuring an effective and efficient payment system. To this effect the Bank is currently engaged in reviewing the National Payment System with the view to bring it in line with internationally accepted principles.
5. Issuing of Currency
The Central Bank has the sole right to issue and manage the national currency. Through the commercial banks, it puts into circulation notes and coins for the public's need for cash. The Bank also has the responsibility to regularly sort out notes that are no longer fit for circulation; to check for counterfeits and to replace mutilated notes. It also carries out repatriation of foreign currencies and retrieval of national currency, maloti, from abroad.
6. Advisor to the Government on Financial and General Macroeconomic Matters
The Central Bank has a Research Department that is its technical arm. The Department monitors economic developments with a view to analysing economic policies, and recommending remedial measures as well as making macroeconomic analyses and forecasts. The performance of banking and other financial institutions is also reviewed and an analysis made of domestic and regional money and capital markets, as well as international economic prospects.
As stipulated in article 70 of the Code of Money and Credit, the Banque du Liban (BDL) is mainly concerned with the safeguarding of the currency in order to ensure a basis for sustained social and economic growth. Its basic responsibilities specifically include: safeguarding the currency; maintaining economic stability; maintaining and safeguarding the soundness of the banking system; developing the money and financial markets. To fulfill its major functions, BDL cooperates with the Government to ensure exchange rate stability, control liquidity, impose credit restrictions, and issue banking regulations.
Cooperation with the Government involves coordination of fiscal and economic policy measures to ensure a certain harmony between its objectives and those of the Government, suggestions benefiting various economic variables to promote economic growth, and advice on issues regarding the Lebanese currency.
Exchange rate stability entails the use of all measures BDL sees appropriate, specifically intervention in the market to buy and sell foreign currencies.
The control of liquidity involves changes in discount rates, loans granted to banks and financial institutions, intervention in the foreign exchange market, open market operations, imposition of reserve requirements on assets and/or liabilities as well as penalties for shortfalls in their formation, and/or the receipt of deposits from banks.
It can also affect the volume of credit and the general credit situation by determining the volume of certain types of credits, credit granted for specific purposes, credit granted for specific sectors, and setting the terms and regulations of credits.
BDL can issue regulations to ensure the soundness of the banking system. It can set, in consultation with the Lebanese Banks Association, regulations governing the relation of banks with their customers, and banks liquidity and capital adequacy. It has the power to regulate asset to liabilities ratios on all or selected banks to be met at a date specified by BDL.
