MARKET REGULATION: ROLE OF RBF AND EXCHANGE CONTROL
TABLE OF CONTENT
- Objectives
- Introduction
- Literature Review
- What does the Reserve Bank do?
Analysis and Interpretation:
- Objectives of Overseeing the Financial System
- What makes up Fiji’s Financial System?
- The Reserve Bank’s approach to regulating and supervising the Financial System.
- Exchange Control
- Concluding Remarks
- References
OBJECTIVES
The objective of this research paper is to:
• Find out the role of RBF in regulating Fiji’s Financial System focusing on Fiji’s Financial Intelligence Unit.
• Find out how these regulations assist to counter Money Laundering.
• What controls RBF has places in regards to Exchange Control.
• Provide recommendations, if any.
INTRODUCTION
The Reserve Bank of Fiji is our country’s central bank. The Reserve Bank was established in 1984 and was expected to administer money supply, the foreign currency reserves, supervise the commercial banking system and other economic matters to address. The RBF functions as a bankers’ bank and is also a bank for the government. It oversees the inflow and regulates the outflow of foreign capital and also supervises the activities of Fiji’s insurance industry. All the above duties of RBF and the way these duties are carried out form Fiji’s monetary policy.
The following are the statutory responsibilities of the RBF. The functions, powers, and responsibilities of the Bank are stated out in the Reserve Bank of Fiji Act, 1983.
• To regulate the issue of currency, and the supply, availability and international exchange of money;
• To promote monetary stability;
• To promote a sound financial structure; and
• To foster credit and exchange conditions conduciv...
... middle of paper ...
...ations of prudent nature, the authorities ought to regulate and supervise exchange market with the view to market international investor confidence and market discipline, providing such authorities have the required resources and information on the evolving markets. Otherwise, the macroeconomic cost of official type of exchange controls are going to be the continuing inability of the country to profit from the economic globalisation to reinforce economic welfare of the overall public.
REFERENCES
Capital Markets Development Authority Act, (1996)
Exchange Control Act Rev. (1985)
Financial Transactions Reporting Act (2004)
Financial Transactions Reporting Regulations (2007)
Samarasiri, P. (2008). Exchange Control Liberalization,. Sri Lanka.
Reserve Bank of Fiji Act, (1983)
The Banking Act (1995)
The Insurance Act (1998)
This is why regulating money, trade, and the economy is an important part of government tasks. In the end, citizens want the best policy to promote the U.S. into a stable and secure economy.
The Federal Reserve or the FED is the central banking system in the United States. It was created in 1913 under president Wilson, with the purpose of controlling the stability of the financial system. The monetary policy is the course of action that the FED takes to ensure a stable economy in the United States.
The Federal Reserve System is the central banking authority of the United States. It acts as a fiscal agent for the United States government and is custodian of the reserve accounts of commercial banks, makes loans to commercial banks, and is authorized to issue Federal Reserve notes that constitute the entire supply of paper currency of the country. Created by the Federal Reserve Act of 1913, it is comprised of 12 Federal Reserve banks, the Federal Open Market Committee, and the Federal Advisory Council, and since 1976, a Consumer Advisory Council which includes several thousand member banks. The board of Governors of the Federal Reserve System determines the reserve requirements of the member banks within statutory limits, reviews and determines the discount rates established pursuant to the Federal Reserve Act to serve the public interest; it is governed by a board of nine directors, six of whom are elected by the member banks and three of whom are appointed by the Board of Governors of the Federal Reserve System. The Federal Reserve banks are located in Boston, New York, Philadelphia, Chicago, San Francisco, Cleveland, Richmond, Atlanta, Saint Louis, Minneapolis, Kansas City and Dallas.
Deliberate fixing of the exchange rate or preannounced rates of depreciation below the prevailing rates of inflation, have been adopted in various countries to break inflation. The experience has been almost unif...
The net values of Belarus imported goods and services from other countries exceeded its export of goods and service to other countries creating a large Current Account Deficit. The reason Belarus a former Soviet republic scraped the currency trading restriction is due to the fact its political leadership allowed the Belarus national currency ruble to depreciate as part of a strategy to reduce the current account deficit. The unification of the exchange rates will allow the currency market ability to function as before. The overheated economy under a loose monetary policy created this crisis and the difficulties will be overcome by abolishing the restriction on currency trading. The political promise of 50% increase in wages to the government workers have impacted with no real values other than buying foreign currency and goods. According to Arkhipov and Abelsky (2011), abolishing the currency trading restriction is necessary given the current practice of doin...
It’s mandatory for all the banks to deposit a certain determined percentage of their assets with the central bank to make sure that the banks’ customer deposits are safe. These percentages are what the central bank adjusts to reduce or increase the banking lending ...
stability and uphold the value of the dollar. The Fed is able to make the necessary
In this age of change, the international financial is progressing promptly on various fronts, such as the International Monetary Fund (IMF) play a pivotal role in international financial system. Yet at the same time, many criticisms point out that IMF are not efficient enough to react to settle the problems that have accompanied with this trend. This issue has drawn widespread attention in recent decades. This essay will give an overview about what the IMF it is first, and then put forward by some examples that what kind of role the IMF has done to address financial issues, good or bad. Finally, this essay will propose some solutions about the IMF how could it be more useful to solve the financial crisis.
“[…] it is desirable to establish a central bank in Canada to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, p...
This is an exchange rate system where the currency exchange rate system is allowed to be determined by the forces of demand and supply. Here, the central bank and the government do intervene to cub extreme exchange rate fluctuation by adopting monetary or fiscal policy.
The stability of currency values plays a significant role for economic and financial stability. It is not difficult to see the exchange rate fluctuations are widely regarded as damaging. As the movements of the exchange rate have significant and large effects on the trade balance, resource allocation, domestic prices, interest rate, national income and other key economic variables. Then can exchange rate movements be predicted by these fundamental economic variables?
Angola is one of those countries that is full of such examples. It is also full of contradictions and inefficiencies that dictate that more than often these interventions are only temporary on not fully abided by.
The study is primarily designed to find out the continuous issue of the banking system in
The foreign exchange market is one of important mechanism in the international business because foreign exchange is an intermediary for all nations in term of the growth of the economy. There are many functions of foreign exchange market in the global economy. In the international business, it uses the foreign exchange markets in four ways. First, the pay...
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)