Auroran Central Bank
Auroran Central Bank
|Predecessor||Bank of Staynes|
|Headquarters||Seat of the Auroran Central Bank|
President of the Auroran Central Bank
|Board of Governors|
The Auroran Central Bank (ACB) is the central bank of the Kirib Monetary Union (kiribzone) – a union of nations primarily located in Aurora. The bank is located in Tarov, Tivot and is headed by President of the ACB, Edith Dohaer of Great Morstaybishlia. The bank regulates and controls the kirib and succeeded the Bank of Staynes in this role. The working language of the organization is Staynish.
The Bank of Staynes was the central bank of Great Morstaybishlia and its empire. It issued the kirib as the currency of the Empire. Through bilateral arrangements with the Bank of Staynes, other Auroran nations made use of the kirib. As Great Morstaybishlia democratized and decolonized and the economic and political links of the Auroran nations especially those using the kirib became more intertwined, the kirib became more deeply entwined with economics of Aurora. To both relieve the Bank of Staynes of the incredible financial pressure of maintaining the currency and to respect the equality of participating nations, the Bank of Staynes surrendered control of the kirib.
The participating nations also sought to prevent the Great Morstaybishlian economy from carrying the payment needs and financial issues of other states while also freeing themselves from the political and economic fortunes of Great Morstaybishlia. The nation’s which used the kirib held a meeting where they agreed on how the kirib should be structured. This involved establishing the Kirib Monetary Union with the ACB at the head. The location of the bank was stated as Tarov, Tivot, a country which was notoriously neutral and had amicable relations with founding countries.
The Charter of the ACB is the founding document of the ACB. It was agreed on by the founding states of the Kiribzone and is binding on all members. It sets out the purpose, structure, powers and duties of the ACB and the admission of member states. Member states who are admitted are required to ratify the document to bring legal effect to its provisions on that themselves. Moreover, the directives, policies and actions of the bank must comply with the charter. The Charter states that the bank must be neutral in the political affairs of the continent.
The bank was designed to be insulated from the political upheavals of the Auroran Continent. Although it has had relationships with the major international organizations of the continent such as the Auroran Continental Assembly, Auroran Union and more recently, the United Nations of the Auroran Continent, it is not bound by their rules and is not obligated for follow their instructions or align itself with their policies and ideals. Thus, it can execute its work without fear of influence from external forces. The ACB is solely accountable to the member states who have the power to amend the Charter or introduce new binding treaties upon the ratification of a majority of the member states which comprise the Kiribzone.
The purpose of the ACB is to maintain price stability in the Kiribzone. It accomplishes this purpose through the following tasks:
- Deciding and implementing monetary policy,
- Overseeing the convertability of the kirib,
- Issuing kirib banknotes and coordinating the supply and issuance of coins,
- Facilitating a system of payments,
- Consulting with the central banks of member states on the supervision of the banking industry,
- Advising the member states of the Kiribzone on economic, trade and fiscal policy.
- Acting as a lender of last resort to the central banks of member states
- Acting as a banker to the United Nations of the Auroran Continent
Board of Governors
The highest organ of the ACB is the Board of Governors. This body is comprised of the governors (and equivalent officials) of the central banks of member state, or a proxy appointed in terms of the rules of the central bank they represent. Each governor has the right to debate and vote on the matters presented to the BOG. Decisions are made by a majority of both share and number. Meaning that both a majority of member states and a majority of shares must be met before a decision on binding matter is enforceable. The BOG has the following powers and functions:
- Deciding on the admission, expulsion or suspension of member states,
- Setting the continental overnight and repo rates
- Developing convergence criteria which states must meet before being admitted,
- Setting the foreign exchange regime of the kirib,
- Approving the design of banknotes and template of coins, and deciding on the volume of banknotes and coins to be issued,
- Proposing rules for the control of the banking industry to member states and monitoring the implementation of those rules,
- Making non-binding recommendations on trade and fiscal to the governments of member states,
- Appointing the President and Executive Board of the ACB,
- Approving the borrowing and lending ceilings and floors of bonds and other securities by the ACB.
The Executive Board (EB) is elected by the BOG. The primary purpose of the EB is to execute the directives of the ACB and oversee the running of the daily affairs of the bank. This includes the following tasks:
- Appointing key personal,
- Setting employment policies,
- Procurement and approving suppliers and contractors,
- Implementing and monitoring physical and digital infrastructure,
- Putting bonds up for sale and researching and purchasing securities in line with limits set by the BOG,
- Collecting data on the monetary, macroeconomic and financial issues affecting member states,
- Proposing policies and directives for the approval of the BOG,
- Providing a report on the Bank and answering the questions of the BOG,
- Carrying out duties required by the BOG.
The President is the highest ranking official of the ACB. The President is elected by the BOG. This position is currently occupied by Edith Dohaer, a politician and lawyer, from Great Morstaybishlia. The President is the chief executive officer of the bank. This entails the following tasks:
- Chairing meetings of the EB,
- Coordinating the operations of the ACB,
- Representing the EB to the BOG and representing the ACB to the world,
- Supervising the implementation of BOG directives,
- Developing institutional controls,
- Presenting the annual report on behalf of the EB.
The ACB is located In Tarov, Tivot. The Seat of the ACB is an office complex in the city which consists of the following key structures:
- Skyscraper providing meeting rooms, offices and recreational facilities and a cafeteria for employees,
- Conference center with a large gathering hall and smaller session rooms for talks and catering facilities,
- Parking facility where vehicles are housed, supplies are brought in, waste is processed and sent out and electrical, water, waste and other systems are managed.
The countries which ratified the Charter of the ACB upon its founding were admitted automatically. The BOG is responsible for voting on admitting members.
Countries which wish to join the Kiribzone are required to meet convergence criteria before joining. These convergence criteria include meeting the following standards:
- Inflation targets
- Economic growth targets
- Debt to GDP criteria
- Private vs public debt criteria
- Balance payments and budget deficit criteria
List of member states
Upon becoming members, the central bank of the nation states is apportioned a portion of the bank’s shares according to its GDP and population in comparison with existing member nations. The shares reflect as equity on the ACB’s balance sheet, but they reflect as a liability on the National Central Banks’ balance sheets in the form of prescribed assets. This means that a portion of the National Central Banks’ assets are payable to the ACB to the value of the shares they own.
Member states are as follows
|Country name||Central bank||Central bank governor (or equivalent)||Shares (%)||Shares (KRB)|
|Baykalia||Second Bank of Baykalia||Governor Natela Grvzidze||1.7||♅299,778,000.00|
|Durentria||Bank of Durentria||Governor Oda Loftmann||3.8||♅670,092,000.00|
|Great Morstaybishlia||Bank of Staynes||Governor Pevence Morsmar||17.0||♅2,997,780,000.00|
|North Ethalrian Confederacy||Bank of North Ethalria||Governor Hanna Arimach||9.1||♅1,604,694,000.00|
|Nolova||Bank of Nolova||Chancellor Iakob Malikhani||2.0||♅352,680,000.00|
|Oan Isles||Bank of the Oan Isles||Governor Pauro Toangakau||4.5||♅793,530,000.00|
|Sarentria||Bank of Sarentria||Governor Frauke Pabst||4.8||♅846,432,000.00|
|Tivot||Tivot Central Financiary||Chief Financier Avtandil Giorgadze||5.4||♅952,236,000.00|
|Tuvaltastan||Grand Bank of Tuvaltastan||Chancellor Zurab Zurashvili||6.7||♅1,181,478,000.00|