National Bank of the Republic of Abkhazia

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Front view of main office at the Leon street

The National Bank of the Republic of Abkhazia (Abkhaz: Аҧсны Аҳәынҭқарра Амилаҭтә Банк, Russian: Национальный банк Республики Абхазия), also known by the short form of Bank of Abkhazia (Russian: Банк Абхазии) is the main bank of the de facto independent Republic of Abkhazia, recognized by most countries as part of Georgia. It was established on February 11, 1995 by presidential decree.

The Bank's headquarters are located in a constructivist building on the Leon street in Sukhumi, Abkhazia's capital.

1 Functions of the Bank
2 Coordination with Central Bank of Russia
3 See also
4 References
5 External links

[edit] Functions of the Bank

Due to the usage of Russian rouble in Abkhazia, the National Bank of Abkhazia exercises little control over the money supply in Abkhazia’s economy and has almost no influence on the value of the Russian currency. Its actions are primarily focused on registering commercial banks and making wholesale loans to them.^[1]

The declared functions of the Bank are as follows, it:

develops and conducts in cooperation with the Government of the Republic of Abkhazia the state's monetary policy;

implements emissions of cash and arranges for their treatment;

is the creditor of last resort for credit institutions and organizes a system of refinancing;

establishes rules of settlement in the Republic of Abkhazia;

establishes rules for banking, accounting and reporting for the banking system;

implements state registration of credit organisations;

grants and revokes licenses of credit institutions and organisations involved in their audit;

supervises and monitors the activities of credit organisations;

registers issue securities lending organisations, in accordance with the law;

exercises alone or at the invitation of the Government of the Republic of Abkhazia all kinds of banking operations needed to meet the major challenges of the Bank of Abkhazia;

implements currency regulation, including operations on the buying and selling of foreign currency, it determines the order of settlement with foreign countries;

organises and implements exchange controls, in accordance with the laws of the Republic of Abkhazia

organises and carries out measures to prevent the legalization (laundering) of proceeds from crime and terrorism financing.

participates in the development of the balance of payments forecast of the Republic of Abkhazia, and organizes the balance of payments Republic of Abkhazia;

conducts analysing and forecasting of the economy of the Republic of Abkhazia, especially in the monetary and financial fields, publishes relevant material and statistical data.

[edit] Coordination with Central Bank of Russia

With Russia's formal lifting of economic sanctions following the declaration of independence of Kosovo the Government of the Republic of Abkhazia has proposed opening a correspondent account of the National Bank of Abkhazia with the Sochi branch of the the Central Bank of Russia (CBR) and authorizing CBR to provide soft loans to Abkhazia’s bank.^[2]