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International Central Banks• European Central Bank (ECB)• Bank of England (BoE)• Bank of Japan (BoJ)
by Poochapa R.
European Central Bank (ECB)
• Located in Frankfurt, Germany• Established in June 1998• Euro, single currency• Officially introduced in Jan 1st, 1999• 12 Countries member• Denmark, Sweden, UK
European Central Bank (ECB)
Organizational Structure• President• Vice-President• 6 members in Executive Board• Implementing decisions made by 2
overall councils
European Central Bank (ECB)
The Governing Council
• 6 members of Exec. Board &12 Governors
• 2 times/month Meeting
• Set Interest Rate & Euro Changeover decisions
The General Council• President & Vice
President• 12 Governors from
Euro• 13 Governors from
Non-Euro• Quarterly Meeting• All issues about EU
countries
European Central Bank (ECB)
Monetary Policy• Price Stability
– 2% Inflation Target
– 4.5% M3– Set by
Governing Council
• Foreign Exchange Reserve– 2% of Liabilities– Keeping a
minimum reserve with ECB
European Central Bank (ECB)
Main Responsibilities• Monetary Policy• FX Operations• Foreign Reserves• Banknotes• Payment System
Additional Tasks• Stat Info.• Developments in Bank/Fin sectors
European Central Bank (ECB)
The Euro Weakness• GDP• Productivity Growth & Investment
Profitability • Investors’ Confidence• Investors’ Expectation --> $ is safe
place• Euro Overvaluation
Bank of England (BoE)
• “Old Lady of Threadneedle Street”• Located in London, UK• Founded in July 27, 1694• Bank of government• 2 departments; Issue & Banking• Pound currency
Bank of England (BoE)
Organizational Structure
• BoE– A Governor– A Deputy
Governor– 16 Directors
• 1694 Under Gov.• 1997
Independence
• Monetary Policy Committee (MPC)– The Governor– 2 Deputy Governors– Chief Economist– Exec Director of Mkt
Operation– 4 external members
Bank of England (BoE)
Monetary Policy• Maintaining the price stability• Setting Interest RateMPC• Monthly Meeting• One person, One vote• Transparency• Quarterly Inflation Report• National Changeover Plan (NCP)
Bank of Japan (BoJ)
• Located in Tokyo, Japan• Founded in 1882 (Meiji 15)• Independence from MoF• FX transactions• Yen currency
Bank of Japan (BoJ)
The Policy Board• A Governor• 2 Deputy Governors• 6 Deliberate Members• 2 times/month Meeting• Monthly Report & Monthly Econ
Report (Tanken)