Central Bank Board Takes Center Stage

Overview

The Republic of Armenia’s Central Bank has outlined its governing body, the Board of the Central Bank, in a newly published article.

Composition of the Board

According to Article 19, the Board is responsible for overseeing the bank’s management and operations. The five-member board will be comprised of:

• The Chairman
• His/her deputy
• Three other members appointed by the President of the Republic of Armenia for a term of five years

The terms of office for each member are staggered:

• One member serves for one year
• Another member serves for two years
• And so on

In the event of a vacancy, the new member will be appointed to fill the remaining period of their predecessor’s term.

Powers of the Board

Article 20 outlines the powers of the Board, including:

• Approving the Central Bank’s Statute • Setting monetary policy programs • Establishing interest rates and reserve requirements • Adopting normative acts

The Board is also responsible for:

• Determining the face value and design of the national currency • Issuing and withdrawing banknotes and coins • Deciding on issues concerning membership in international organizations • Approving reports and statements made by the Central Bank

Other responsibilities include:

• Granting banking licenses • Recognizing insolvent banks • Exercising other powers prescribed by law

Requirements for Board Members

Article 19 also outlines the requirements for Board members, who must be:

• Citizens of Armenia
• Have professional capabilities to ensure the carrying out of their duties
• Not hold any other state position or perform any paid work besides scientific, pedagogical, and creative activities

Conclusion

The Central Bank’s Board is set to play a crucial role in shaping the country’s financial landscape, and its members will be expected to meet high standards of professionalism and integrity.