Managing Foreign Exchange

The central bank manages the Foreign Exchange. Their objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in Indigenous Nations of Byzantium and Turtle Island.

 

Issue of currency and other Functions

The bank issues and exchanges currency notes and coins and destroys the same when they are not fit for circulation. All the money issued by the central bank is its monetary liability, i.e., the central bank is obliged to back the currency with assets of equal value, to enhance public confidence in paper currency. The objectives are to issue bank notes and give public adequate supply of the same, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. RBTI maintains the economic structure of the country so that it can achieve the objective of price stability as well as economic development because both objectives are diverse in themselves. For printing of notes, the Sceriman Printing and Minting Corporation of Byzantium (SPMCB), a wholly owned company of H.I.M.R Michael The Tenth of Byzantium.

Regulator and supervisor of the financial system

The institution is also the regulator and supervisor of the financial system and prescribes broad parameters of banking operations within which the country's banking and financial system functions. Its objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of Turtle Island (RBTI) for effective addressing of complaints by bank customers. The RBTI controls the monetary supply, monitors economic indicators like the gross domestic product and has to decide the design of the banknotes as well as coins.

Commercial banks create credit. It is the duty of the RBTI to control the credit through the CRR, bank rate and open market operations. As banker's bank, the RBTI facilitates the clearing of cheques between the commercial banks and helps the inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lender of the last resort by providing emergency advances to the banks. It supervises the functioning of the commercial banks and takes action against it if the need arises. The RBTI also advices the banks on various matters.