New Bill to ensure Central Bank’s autonomy at all times

A draft bill to repeal the Monetary Law Act will give administrative and financial autonomy to the Central Bank.

The bill, which has been gazetted, calls for respect for the Central Bank’s autonomy at all times.

No person or entity can cause any influence on the Central Bank Governor or other members of the Governing Board and the Monetary Policy Board or Central Bank employees in the exercise, performance and discharge of their powers, duties and functions under the Act or interfere with the activities of the Central Bank, the bill warns.

The bill stresses that except in the exercise, performance and discharge of the powers, duties and functions under the Act, the Central Bank Governor or other members of the Governing Board and the Monetary Policy Board, Central Bank employees or any person authorised by the Central Bank shall not seek or take instructions from any person.

However, this shall not prevent the Central Bank from seeking professional or expert advice to effectively exercise, perform and discharge its powers, duties and functions under this Act or any other written law.

The bill notes that the Central Bank’s primary object shall be to achieve and maintain domestic price stability and financial autonomy. Its other object shall be to secure the financial system’s stability.

The draft Act will pave the way for the establishment of the Governing Board of the Central Bank. It will be charged with the responsibility of overseeing the administration and management of the affairs of the Central Bank and the determination of the general policy of the Central Bank other than the monetary policy.

The Central Bank’s Governor shall be the chairperson of the Governing Board and it will also consist of six members who shall have expertise in economics, banking, finance, accounting and auditing, law or risk management, the Bill notes.