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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
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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 NonEuro
• 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
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Founded in July 27, 1694
Bank of government
2 departments; Issue & Banking
Pound currency
Bank of England (BoE)
Organizational Structure
• Monetary Policy
• BoE
Committee (MPC)
– A Governor
– The Governor
– A Deputy Governor
– 2 Deputy Governors
– 16 Directors
– Chief Economist
• 1694 Under Gov.
– Exec Director of Mkt
• 1997 Independence
Operation
– 4 external members
Bank of England (BoE)
Monetary Policy
• Maintaining the price stability
• Setting Interest Rate
MPC
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Monthly Meeting
One person, One vote
Transparency
Quarterly Inflation Report
National Changeover Plan (NCP)
Bank of Japan (BoJ)
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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)
Bank of Japan (BoJ)
Monetary Policy
• ZIRP
• Overnight Call Rate
• Repo transaction
• Business Survey
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