Banco Central Do Brazil

The Banco Central do Brasil (BCB), created by Law no. 4,595 of December 31st, 1964, is an autonomous federal institution and part of the National Financial System (SFN). Before the creation of the Central Bank, the Brazilian monetary authorities were the Currency and Credit Superintendence (SUMOC), the Bank of Brazil (BB) and the National Treasury. The SUMOC, created in 1945 with the objective of exercising the monetary control and preparing the basis for a central bank, had the responsibility of setting forth the: reserve requirements ratio for commercial banks, discount rates (linked to development funds) and financial assistance for liquidity (meaning the discount as a classic instrument of monetary policy), as well as the interest rate on bank demand deposits. At the same time, it supervised the operation of commercial banks; managed the exchange policy and represented the Country at international organizations.

Banco do Brasil carried out the functions of the government bank: controlling foreign trade operations; executing foreign exchange operations on behalf of public sector enterprises and the National Treasury; executed the rules set forth by the SUMOC and the Bank for Agricultural, Industrial and Commercial Credit, as well as receiving reserve requirements and voluntary deposits of commercial banks. The National Treasury was the currency issuing authority, but the issuing process was a complex one involving several governmental entities. Although some improvement has been reached, the institutional process was not complete. The Central Bank became the currency issuing bank, but acted according to the needs of the Bank of Brazil. It was also the bank of banks, but was not the sole holder of the financial institutions' deposits because the institutions placed their voluntary reserves in the Bank of Brazil. Besides, the Central Bank was the government's financial agent, in charge of managing the federal public debt, but was not the cashier to the National Treasury, since this was a function of the Banco do Brasil. In 1985, the decision was made towards a financial reorganization of the government, with a breaking down of the accounts and functions of the Central Bank, the Bank of Brazil and the National Treasury. In the 1986 fiscal budget, not only all the revenues and expenditures of the National Treasury were included, but also all the accounts of fiscal nature that were under the Monetary Budget. In 1986, the "movement provisional account" was extinguished and, from then on, the disbursement of funds from the Central Bank to the Bank of Brazil were clearly identified in the budgets of each institution, eliminating the automatic transfers that hampered the management by the Central Bank. In a process that continued through 1988, the functions of monetary authority were progressively transferred from the Bank of Brazil to the Central Bank, while the atypical activities carried out by the latter, such as those related to economic incentives and the administration of the federal public debt, were transferred to the National Treasury. The 1988 Constitution sets down Central Bank's matters, such as the exclusive attribution of the Union to issue money, the need to submit persons appointed by the President of the Republic to be president and director of the Central Bank to prior approval by the Senate, and the prohibition to direct or indirect granting of loans to the National Treasury. The 1988 Constitution also establishes the drawing up of a Complementary Law of the National Financial System, to substitute Law no. 4,595, dealing with varied and important aspects of the structure and activities of the Banco Central do Brasil.

Banco Central de Cuba

Central Bank of Cuba Brief History Established (as Banco National de Cuba ) 1950, reorganised in 1961, 1966, 1975, 1984. Re-established in 1997 as Central Bank of Cuba, a state bank with monetary and foreign exchange authority. In 1948, Banco Nacional de Cuba is created as a Central Bank of the State, assuming the functions of an issuer entity of the nation until the constitution of Banco Central de Cuba. Since it was created in 1997, Banco Central de Cuba exert the function of issuer entity on the national currency in the country; and this very year, the issuance of the first series of bank notes in Cuban pesos on behalf of BCC started. Further on, the rest of the denomination follow, until all the monetary signs with notes issued by Banco Central de Cuba was completed. By this way, most of the bank notes circulating nowadays have been issued by Banco Central de Cuba. The coins, both from Cuban peso and convertible peso, have been regularly issued according to the needs of circulation within the country. The first issues by Banco Central de Cuba started as from its constitution in the year 1997, with bank note with face value of 5 and 10 pesos. Make click on notes that you wants to be enlarged They were followed by the issue of bank notes with face value of 20 and 50 pesos in 1988. In the year 2000, on the occasion of the 50th Anniversary of the Central Banking in Cuba, the 100 peso bank note was issued, dedicated to commemorate this occasion. The printing of this denomination has regularly continued in the following years. In the year 2001, the preceding issues were accompanied by the one peso bank note. In the year 2003, Banco Central de Cuba issued two commemorative bank notes: The first one with face value of 1 peso in the occasion of he 150th Anniversary of the birth of Jose Marti, our national hero, and the second one, with a face value of 20 pesos in remembrance of the 50th Anniversary of the Assault to Moncada Garrison. With the 3 peso bank note issued in the year 2004, Banco Central de Cuba completed all our set of bank notes issued in its name. In the year 2002, printing of high denominations using with the Intaglio system was introduced with the denomination of 50 pesos, which confers a higher quality, security and aesthetic, as well as the relief sensation perceptible by the sense of touch. At present, bank notes of 20, 50 and 100 are printed by means of this technique.

Europe is slow to follow

The rest of the world recovers apace from 2001’s travails, but Europe’s

bank of sweden

History

Sveriges Riksbank, or the Riksbank as it is usually called, is the world’s oldest central bank. It was founded in 1668 and was then known as the Bank of the Estates of the Realm, in other words, parliament’s bank. Initially, the Riksbank was more like an ordinary commercial bank than a central bank. It lent money to the general public and did not have a monopoly on issuing banknotes until 1904. Prior to this the banks issued their own banknotes.

The Riksbank began its activities in 1668. Its precursor was the so-called Palmstruch bank, or Stockholm Banco, which was founded in 1656. Although Johan Palmstruch’s bank was private, its governors were chosen by the King and the bank’s activities were regulated in a document whereby the King gave Palmstruch permission to run a bank.

Introduction to the People's Bank of China

Introduction to the People's Bank of China

The People's Bank of China (PBC) was established on December 1, 1948 based on the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. In September 1983, the State Council decided to have the PBC function as a central bank. The Law of the People's Republic of China on the People's Bank of China adopted on March 18, 1995 by the 3rd Plenum of the 8th National People's Congress has since legally confirmed the PBC's central bank status.
With the improvement of the socialist market economic system, the PBC, as a central bank, will play an even more important role in China's macroeconomic management. The amended Law of the People's Republic of China on the People's Bank of China, adopted by the 6th meeting of the Standing Committee of the 10th National People's Congress on December 27, 2003, provides that the PBC performs the following major functions:
(1) Drafting and enforcing relevant laws, rules and regulations that are related to fulfilling its functions;
(2) Formulating and implementing monetary policy in accordance with law;
(3) Issuing the Renminbi and administering its circulation;
(4) Regulating financial markets, including the inter-bank lending market, the inter-bank bond market, foreign exchange market and gold market;
(5) Preventing and mitigating systemic financial risks to safeguard financial stability;
(6) Maintaining the Renminbi exchange rate at adaptive and equilibrium level; Holding and managing the state foreign exchange and gold reserves;
(7) Managing the State treasury as fiscal agent;
(8) Making payment and settlement rules in collaboration with relevant departments and ensuring normal operation of the payment and settlement systems;
(9) Providing guidance to anti-money laundering work in the financial sector and monitoring money-laundering related suspicious fund movement;
(10) Developing statistics system for the financial industry and responsible for the consolidation of financial statistics as well as the conduct of economic analysis and forecast
(11) Administering credit reporting industry in China and promoting the building up of credit information system;
(12) Participating in international financial activities at the capacity of the central bank;
(13) Engaging in financial business operations in line with relevant rules;
(14) Performing other functions prescribed by the State Council.

Bank of India

The Reserve Bank of India was set up on the basis of the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission.

The Reserve Bank of India was set up as a Share Holders' Bank. The Share Issue of the Bank offered in March, 1935 was the largest share issue in India at the time. The matter was further compounded by the conditions and restrictions imposed under the Act. These conditions related to qualifications of the shareholders, the geographical distribution and allotment of shares (to avoid concentration of shares and to ensure that those holding the shares were fit and proper. To simplify matters, Share Certificate Forms of the different registers were printed in different colours. Despite the intricate and gigantic nature of the task, it was carried out with great 'accuracy and dispatch'.

A message sent by the Viceroy to the Governor, Osborne Smith when the Reserve Bank of India commenced its operations on 1st April, 1935

Message

OSBORNE SMITH GOVERNOR RESERVE BANK CALCUTTA. FOLLOWING HAS BEEN RECEIVED FROM SECRETARY FOR YOU. BEGINS, AS RESERVE BANK COMMENCES OPERATIONS TODAY I TAKE OPPORTUNITY TO CONVEY YOU AND YOUR COLLEAGUES ON THE BOARD MY MOST GOOD WISHES AND TO EXPRESS MY CONFIDENCE THAT THIS GREAT UNDERTAKING WILL CONTRIBUTE LARGELY TO THE ECONOMIC WELL BEING OF INDIA AND OF ITS PEOPLE. PRIVATE SECRETARY VICEROY

History and production of money

Different cultures throughout the world have used different means of payment. In the South Seas, seashells were used as money, while Central Americans paid for goods with cocoa beans. Welcome to the diverse world of payment media!

The functions of money - what makes it valuable?

Why do we actually need money?
What characteristics does it have to have in order to fulfil its functions? On this stage, you will learn about the basics of monetary theory and policy.

At an interactive terminal, you can see for yourself how difficult life would be without money - in a goods market in the imaginary country of Nonpekunia.