Tue dole of National Bank of Rwanda from 1995 to 2010
par Paterne RUKUNDO
National university of Rwanda - A0 2011
In developed nations, the central bank, conduct a wide range of banking, regulatory and supervisory functions. They have a substantial public responsibilities and abroad array of executive powers. Their major activities can be grouped into five general functions:
Issuer of currency and manager of foreign reserves
Central bank prints money, distributes notes and coins, intervenes in foreign-exchange markets to regulate the national currency's rate of exchange with other currencies and manage foreign assets reserves to maintain the external value of the national currency.
Banker to the government
Central bank provides bank deposit and borrowing facilities to the government while simultaneously acting as the government's fiscal agent and under writer.
Banker to domestic commercial banks
Central bank also provides bank deposit and borrowing facilities to commercial banks and act as a lender of last resort to financially troubled commercial banks.
Regulatory of domestic financial institutions
Central bank ensures that commercial bank and other financial institutions conduct their business prudently and in accordance with relevant laws and regulations. It also monitors reserve ratio requirements and supervise the conduct of local and regional banks.
Operator of monetary and credit policy
Central bank attempts to manipulate monetary and credit policy instruments (the domestic money supply, the discount rate, foreign exchange rate, commercial bank reserve ratio requirement, etc) to achieve major macroeconomic objectives such as controlling inflation. (Rose, 1993)