Royal Monetary Authority of Bhutan

Coordinates: 27°21′30″N 88°43′52″E / 27.35833°N 88.73111°E / 27.35833; 88.73111

Royal Monetary Authority of Bhutan
འབྲུག་རྒྱལ་གཞུང་དངུལ་ལས་དབང་འཛིན་
Headquarters	Thimphu, Bhutan
Established	1982
Governor	Dasho Daw Tenzin
Central bank of	Bhutan
Currency	Ngultrum NPR (ISO 4217)
Website	www.rma.org.bt

The Royal Monetary Authority of Bhutan (Dzongkha: འབྲུག་རྒྱལ་གཞུང་དངུལ་ལས་དབང་འཛིན་; Wylie: 'brug rgyal-gzhung dngul-las dbang-'dzin) is the central bank of Bhutan and is a member of the Asian Clearing Union. It is also the minting authority for the Bhutanese ngultrum. The Royal Monetary Authority of Bhutan was established under the Royal Monetary Authority of Bhutan Act of 1982. Subsequently, the Act of 1982 was amended by the Financial Institutions Act of 1992 and replaced in its entirety by the Royal Monetary Authority Act of 2010.^[1]^[2]^[3]^[4]

History

The Royal Monetary Authority was established in 1982. The following year, it took on the responsibilities of issuing Bhutanese currency, managing external reserves, and operating foreign exchanges.^[1]^[2] In 1988, the Authority assumed the role of government banker, holding the bulk of government deposits and providing financing.^[1] With the passage of the Financial Institutions Act of 1992, the substantive framework of the Authority was expanded to include licensure, regulation, and inspection of financial institutions in Bhutan.^[1]^[3] The Constitution of 2008 specifically authorizes the government to manage public finance and the monetary system, affirming previous law. Public finance is backed by the Consolidated Fund, while the monetary system is the purview of the Central Bank.^[5]^{[nb 1]}

Authority administration

The Royal Monetary Authority Act of 2010, the latest legislation on the Royal Monetary Authority, streamlined the codification of its functions. The Act of 2010 refines the framework of the Board of Directors and Executive Committee, which comprise the administration of the Authority.^{[nb 2]} It also establishes an Audit Committee for internal auditing confirmed by external audits by the Royal Audit Authority, and for publication of statistics.^{[nb 3]}

The Board of Directors is a rulemaking authority consisting of seven people: a royally appointed Governor, as chair; two Deputy Governors, one of whom serves as Secretary; and four others appointed by the government including one member of the Ministry of Finance.^{[nb 4]} The appointed members hold office for five years, may be reappointed once, and are forbidden to hold political affiliations or substantial interests – including any shares – in financial institutions.^{[nb 5]} The Deputy Governors are appointed by the Board itself.^{[nb 6]} The Board, in addition to its rulemaking authority, is also authorized to establish divisions and delegate functions as it sees fit.^{[nb 7]}

The Executive Committee also has seven members: the Governor; the two Deputy Governors; and four others appointed from the among heads of Authority Divisions by the Governor in consultation with the Deputy Governors.^{[nb 8]} The Governor, as the executive, is responsible to the Board for the implementation of the policy and the management of the Authority.^{[nb 9]} The Act of 2010 further promulgates a code of professional and personal conduct, integrity and secrecy requirements, duties under conflict of interest, and a law of accountability for those employed in the Authority.^{[nb 10]}

The Act of 2010 also codifies the role of the Authority in currency, exchanges, official practices, and defines related penal offenses.^{[nb 11]} The Act of 2010 streamlines regulations on external reserves and foreign exchange.^{[nb 12]} It restates the relationship between the Authority and financial institutions and formally enables the Authority to act as the fiscal agent, adviser, and bank to the government of Bhutan.^{[nb 13]} Under the law, government credit and solvency are substantively and procedurally regulated, restricting government loans and advising the government on its budget to prevent indebtedness.^{[nb 14]}

Financial Inclusion

The Royal Monetary Authority of Bhutan is also active in promoting financial inclusion policy and a member of the Alliance for Financial Inclusion. ^[6]

Notes

↑ Constitution: Art. 14, §§ 2, 3, 5
↑ Royal Monetary Authority Act (RMAA) (2010): §§ 28–59
↑ RMAA (2010): §§ 64, 65, 156–168
↑ RMAA (2010): §§ 33–37, 184
↑ RMAA (2010): §§ 37–39
↑ RMAA (2010): §§ 44–47
↑ RMAA (2010): §§ 31, 32
↑ RMAA (2010): §§ 56–59
↑ RMAA (2010): §§ 60–63
↑ RMAA (2010): §§ 74–85
↑ RMAA (2010): §§ 87–107
↑ RMAA (2010): §§ 108–118
↑ RMAA (2010): §§ 119–147
↑ RMAA (2010): §§ 148–154

References

1 2 3 4 "Royal Monetary Authority of Bhutan". Government of Bhutan. Retrieved 2011-01-29.
1 2 "Royal Monetary Authority Act of Bhutan 1982" (PDF). Government of Bhutan. 1982. Retrieved 2010-10-08.
1 2 "Financial Institutions Act of Bhutan 1992" (PDF). Government of Bhutan. 1992. Retrieved 2010-10-08.
↑ "Royal Monetary Authority Act of Bhutan 2010" (PDF). Government of Bhutan. 2010-06-22. Retrieved 2010-10-08.
↑ "The Constitution of the Kingdom of Bhutan" (PDF). Government of Bhutan. 2008-07-18. Retrieved 2010-10-08.
↑ "AFI members". AFI Global. 2011-10-10. Retrieved 2012-02-23.

External links

"Royal Monetary Authority of Bhutan". Government of Bhutan. Retrieved 2011-01-29.

Central banks

Global

Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board

By continent

Africa	Bank of Central African States Central Bank of West African States Bank of Algeria National Bank of Angola Bank of Botswana Bank of the Republic of Burundi Bank of Cape Verde Central Bank of the Comoros Central Bank of the Congo Central Bank of Djibouti Central Bank of Egypt Bank of Eritrea National Bank of Ethiopia Central Bank of The Gambia Bank of Ghana Central Bank of the Republic of Guinea Central Bank of Kenya Central Bank of Lesotho Central Bank of Liberia Central Bank of Libya Central Bank of Madagascar Reserve Bank of Malawi Central Bank of Mauritania Bank of Mauritius Bank Al-Maghrib (Morocco) Bank of Mozambique Bank of Namibia Central Bank of Nigeria National Bank of Rwanda Central Bank of São Tomé and Príncipe Central Bank of Seychelles Bank of Sierra Leone Central Bank of Somalia Bank of Somaliland South African Reserve Bank Bank of South Sudan Central Bank of Sudan Central Bank of Swaziland Bank of Tanzania Central Bank of Tunisia Bank of Uganda Bank of Zambia Reserve Bank of Zimbabwe

Americas	Central Bank of Argentina Central Bank of Aruba Central Bank of The Bahamas Central Bank of Barbados Bermuda Monetary Authority Central Bank of Brazil Bank of Canada Central Bank of Chile Bank of the Republic (Colombia) Central Bank of Cuba Central Bank of Curaçao and Sint Maarten Eastern Caribbean Central Bank Cayman Islands Monetary Authority Central Bank of Ecuador Bank of Guatemala Bank of the Republic of Haiti Central Bank of Honduras Bank of Jamaica Bank of Mexico Central Bank of Nicaragua Central Reserve Bank of Peru Central Bank of Suriname Central Bank of Trinidad and Tobago Federal Reserve System (United States) Central Bank of Uruguay Central Bank of Venezuela

Asia	Da Afghanistan Bank Central Bank of Bahrain Bangladesh Bank Royal Monetary Authority of Bhutan Brunei Currency and Monetary Board Autoriti Monetari Brunei Darussalam National Bank of Cambodia People's Bank of China Hong Kong Monetary Authority Reserve Bank of India Bank Indonesia Central Bank of the Islamic Republic of Iran Central Bank of Iraq Bank of Israel Bank of Japan Central Bank of Jordan National Bank of Kazakhstan National Bank of the Kyrgyz Republic Bank of Korea Central Bank of the Democratic People's Republic of Korea Central Bank of Kuwait Banque du Liban Monetary Authority of Macao Bank Negara Malaysia Maldives Monetary Authority Bank of Mongolia Central Bank of Myanmar Nepal Rastra Bank Central Bank of Oman State Bank of Pakistan Palestine Monetary Authority Bangko Sentral ng Pilipinas Qatar Central Bank Saudi Arabian Monetary Agency Monetary Authority of Singapore Central Bank of Sri Lanka Central Bank of Syria Central Bank of the Republic of China (Taiwan) Bank of Thailand Central Bank of Turkmenistan Central Bank of the United Arab Emirates Central Bank of Uzbekistan State Bank of Vietnam Central Bank of Yemen

Europe	European Central Bank (Eurosystem) National Bank of the Republic of Abkhazia Bank of Albania Central Bank of Armenia National Bank of Austria Central Bank of Azerbaijan National Bank of the Republic of Belarus National Bank of Belgium Central Bank of Bosnia and Herzegovina Bulgarian National Bank Croatian National Bank Central Bank of Cyprus Czech National Bank Danmarks Nationalbank (Denmark) Deutsche Bundesbank (Germany) Bank of England Bank of Estonia Bank of Finland Banque de France National Bank of Georgia Bank of Greece Hungarian National Bank Central Bank of Iceland Central Bank of Ireland Banca d'Italia Central Bank of Kosovo Bank of Latvia Bank of Lithuania Central Bank of Luxembourg National Bank of the Republic of Macedonia Central Bank of Malta National Bank of Moldova Central Bank of Montenegro De Nederlandsche Bank Norges Bank Central Bank of the Turkish Republic of Northern Cyprus National Bank of Poland Banco de Portugal National Bank of Romania Central Bank of Russia National Bank of Serbia National Bank of Slovakia Bank of Slovenia Gosbank (Soviet Union) Bank of Spain Swedish National Bank Swiss National Bank Central Bank of the Republic of Turkey National Bank of Ukraine

Oceania	Reserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New Zealand Bank of Papua New Guinea Central Bank of Samoa Central Bank of Solomon Islands National Reserve Bank of Tonga

Policies and implementation

Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4

Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund

Bretton Woods system

International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency

Lists

List of central banks Central banks and currencies of Africa Central banks and currencies of the Caribbean Central banks and currencies of Central America and South America

Names in italics indicate non-sovereign (dependent) territories, former countries, or states with limited recognition

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