History Central Banking - PDF

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					                                            means of minting and printing fees.          Central Banking
                                            These institutions, as governmental          in the World
                                            banks and the banks responsible for
                                            printing and minting of banknotes and
                                                                                                                     Bank Markazi Jomhuri Islami Iran
                                            coins, gradually took the role of bank of
                                            the banks as well. In general, central       The history of central
                                            banks including having the responsibil-      banking dates back to
                                            ity of economic stability are responsible    the second half of the
                                            for improvement of banking system.           17th century. The                   History of
                                                                                         major reasons behind            Central Banking
                                                 The most important objective of         creation and develop-          in the World and in
                                             central banks is to preserve value of the   ment of central bank-
                                              currency and to control the inflation      ing are:
                                                                                         - to finance the cost of
Central Banking in Iran                     Modern central banks have important          war
                                            duties to perform, most important of         - to unify banknote
Central bank of Iran was founded in         which is to maintain value of the            printing systems
1339 (1960) following the ratification of   country’s currency and or control of         - management of metal
the Monetary and Banking Law of the         inflation. In general, central banks         reserves of the country
country.                                    perform the following tasks which are        - to improve the
According to the 2nd chapter of the said    among their most important duties:           payment systems.
law, the entire activities and process      - sole provider and printer of notes in      The evolution of
related to banknote printing and coin       circulation                                  central banking system
minting is to be solely carried out by      - banker of the government                   brought about eco-
CBI; in addition to that, printing of       - banker of banks                            nomic advantages;
banknotes- which based on the law           - responsible for management of              besides it always had
ratified on 30th Tir 1333 (21 July 1954)    country’s foreign reserves                   political appeal to the
was previously handled by a joint board-    - lender of last resort                      leaders of the coun-
is exclusively vested to CBI based on       - regulatory authority of the country’s      tries since it raised
                                                                                                                    Published by:Public Relations Dept
the articles 14 and 18 of the               monetary policy                              government income by                  Publications
Thus the mission of Bank Markazi                                                                                                       abovementioned chapter. The necessity
Jomhuri Islami Iran is to ensure the                                                                                                   to establish Central Bank of Iran, with
economic growth of the country by                                                                Preserving the value of national      the aim of supervising other banks’
enforcing monetary policies, and to                                                           currency and equilibrium of balance      activities, regulating monetary policy and
support the government in implementing                                                       of payments including ensuring steady
                                                                                             growth of economy by implementation
various economic stability and develop-
                                                                                                of monetary policies are the most
ment plans.                                Central Bank of Iran was founded on 18
                                                                                             important objectives that are followed
Preserving the value of national cur-       Mordad 1339 (9 August 1960) with the
                                                                                                by Bank Markazi Jomhuri Islami
rency and equilibrium in the balance of      capital of Rls 3.6 billion and started
                                                working with 388 personnel.
payments, as well as steady growth of
economy by means of implementing
monetary policies is the objectives       monetary and credit system                       Mordad 1339 (9 August 1960) with the
pursued by BMJII.
                                          - act as supervising body on banks and           capital of Rls 3.6 billion and started
                                          credit institutions                              working with 388 personnel. Based on
                                          - monitorý the volume of credit and              the Monetary and Banking Law ratified
                                          guarding the sufficiency of credit in            on Tir 1351 (July 1972), CBI as the
                                          accordance with needs of the society             regulatory body of the monetary system
                                          - keep the accounts of the ministries,           is responsible to:
                                          government agencies and agencies affili-         - preserve the value of national currency
                                          ated to government                               abroad and domestically
                                          - keep foreign and gold reserves of the          - print and mint banknotes and coins as
                                          country                                          legal tender in circulation
                                          - represent the government in international      - enact the laws and regulations govern-
                                          financial institutions                           ing foreign and Rial transactions           controlling inflation, maintaining price
                                          - take the charge of entire activities related   - supervise gold transactions and enact     stability and directing the country’s
Congratulations for anniversary           to issuance of government bonds                  the related governing regulations           deposits towards generative investments,
of ratification of the Usury Free         - conclude payment agreements with               - supervise the outgoing and incoming       was realized after separation of commer-
                                          foreign nations in execution of financial,       flows of foreign exchange and national      cial operations from banknote printing
    Banking Shahrivar 10th
                                          commercial and transit contracts of the          currency                                    and from monetary policies.
          (1 September )
                                          government                                       - act as regulating body of the country’s   Central Bank of Iran was founded on 18

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