RESERVE BANK'S STATUTORY RESPONSIBILITIES

The functions, powers and responsibilities of the RBV are specified in the Reserve Bank of Vanuatu Act [CAP 125] of 1980. The specific roles of the RBV as spelled out in Section 3 of the Reserve Bank is to

• Regulate the issue, supply, availability and international exchange of money;
• Supervise and regulate banking business and the extension of credit;
• Advise the Government on banking and monetary matters;
• Promote monetary stability;
• Promote a sound financial structure;
• Foster financial conditions conducive to the orderly and balanced economic development of Vanuatu, and
• To regulate and supervise domestic and international (offshore) banks.

·          The formulation and implementation of monetary policy including open market operations in short-term RBV Notes which aims at economic management in which monetary and credit expansion is kept pace with non-inflationary growth at appropriate interest rate levels, while, managing appropriate level of liquidity flows within the banking system to meet the desired stance of monetary policy;

·          Licensing and prudential supervision of domestic and offshore banking business;

·          Custodian and maintenance of the country's official reserve of external assets;

·          Printing, minting, safe-keeping, issue, and maintenance of currency notes and coins;

·          Operations and maintenance of the clearing and settlement of the interbank payments;

·          Collection, analysis and dissemination of monetary, economic and financial data and information;

·          Banker, fiscal agent, depository and adviser to the Government.

·          Banker to domestic commercial banks and the Vanuatu Commodities Marketing Board;

·          Determination, in consultation with the Minister of Finance, of the value of the Vatu in terms of other currencies