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
- To regulate and supervise domestic and international (offshore) banks.
The Bank endeavors to perform these tasks through, among others, these following activities:
- 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 inter bank 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.
For more information please visit RBV’s website at: http://www.rbv.gov.vu/index.php