EXPLANATORY NOTE
The Model Bill hereunder embodies those key principles which
will facilitate the cr eation of a coherent and convergent status in
the legal and operational frameworks of the Southern African
Development Community (SADC) central banks; promote the
adoption of principles which will facilitate the operational
independence of SADC central banks; and create clear
standards of accountability and transparency in the legal and
operational frameworks of SADC central banks. These key
principles are also essential for the achievement of harmonised
legislation for the SADC central banks. However, the Model
Bill does not contain all the details that may be found in the
central bank acts of the individual countries. As and where
appropriate, a central bank may modify this Bill, depending on
the needs of the particular country.
DRAFT MODEL CENTRAL BANK LEGISLATION
BILL
To update and re-enact the statutory law relating to the central bank of
[country][country]; and to provide for matters incidental thereto.

BE IT ENACTED by the [National Legislature] of [country][country], as
follows:
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ARRANGEMENT OF SECTIONS INTERPRETATION
Section .
CHAPTER I
CONTINUED EXISTENCE, OBJECTIVES AND FUNCTIONS OF BANK
3.
Legal form and capacity................................................................. ... ... ... ... . . . . . ... ... ... . 8

CHAPTER II
INSTITUTIONAL ARRANGEMENTS

CHAPTER III
MONETARY POLICY COMMITTEE
24.
25.
26.
Publication of statement of decisions............................................................................. .27
37.

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CHAPTER IV
MONETARY UNIT, BANKNOTES AND COIN/ NOTES ISSUE

CHAPTER V
RELATIONSHIP WITH GOVERNMENT

CHAPTER VI
RELATIONSHIP WITH BANKS AND OTHER FINANCIAL INSTITUTIONS

Consultation with banks and other financial institutions and collection of
51.

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CHAPTER VII
INTERNATIONAL RESERVES AND FOREIGN EXCHANGE
OPERATIONS

CHAPTER VIII
PAYMENT, CLEARING AND SETTLEMENT SYSTEMS
58.
CHAPTER IX
ACCOUNTS AND REPORTING REQUIREMENTS


CHAPTER X
PROFITS AND RESERVES
64.
65.
66.
CHAPTER XI
GENERAL PROVISIONS


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75.
Offences relating to non-disclosure of information or furnishing of false information

Repeal of laws and savings/transitional arrangements and continued existence of
81.
82.

1st Schedule: Directors, Monetary Policy Committee Oath/Affirmation on

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::INTERPRETATION
Definitions
1.
In this Act, unless the context otherwise indicates -
“Bank” means the Central Bank of [country][country] / Reserve Bank of [country][country] /
Bank of [country][country], established under section 2(1);
“bank” means a financial establishment for the deposit, loan, exchange, or issue of money
and for transmission of funds, duly registered and approved to carry banking business in
terms of the applicable law;...
“Board of Directors” means the governing body board of directors of the Bank consisting
the Governor, Deputy Governor(s) and other directors established in accordance with as
contemplated in section 9;
“body corporate” means ...an entity having authority under law to act as a single person
distinct from shareholders who own it and having rights to issue stock and exist indefinitely,
and can not be sequestrated except in terms of this Act through Parliament;
“classified information” means ...
“ information” means information that is classified in terms of top secret,
secret, or and restricted;
“Constitution” means the fundamental and organic law of a nation or state, establishing the
conception, character and organization of its government as well as prescribing the extent
of its sovereign power and the manner of its exercise;...
“Day” means business day, a day that most institutions are open for business, usually a
day in which banks and major stock exchanges are open, excluding Saturdays and
“financial institution” means a business, organization or other entity that manages money,

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credit, or capital, such as a bank, credit union, savings-and-loan association
(cooperatives), securities broker or dealer, pawnbroker or investment company or the
like;....
“fit and proper”: In order to determine, for the purposes of this Act, whether a particular
person is a fit and proper person to hold the office of Governor, Deputy Governor, board of
directors and the Monetary Policy Committee, due regard shall be considered to the
following qualifications means........., in so far as they are easily determinable, of the
person concerned:
(i) the general probability of that person;
(ii) the competence and soundness of judgement of that person for the fulfillment of the
responsibilities of the office in question; and
(iii) the diligence with which the person concerned is likely to fulfill those responsibilities
“Head of State/Government” means... the Constitutional Head of the State or
Government or duly authorized representative for purposes of governing [country]
“high judicial office” means at least the office of a judge of the Hhigh Ccourt or retired judge
or such similar position;
“juristic person/legal person” includes an entity such as a corporation, created by law and
given certain legal rights and duties of a human being, who for the purposes of legal
reasoning is treated more or less as a human being ;” means ...
“legal disability” for purpose of this section (Section 17) legal disability mean
“legal person” means ...
“Minister” means ...the member of the Cabinet (executive) responsible for national
financial matters of [country];
“Official gold and foreign exchange reserves” ...
“Politically active” means holding political office in a political party...

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“Revaluation Reserve Account” means...
“RISDP” means Regional Indicative Strategic Development Plan of SADC, based on the strategic
priorities and SADC Common Agenda designed to provide strategic direction with respect
to SADC projects and activities towards regional integration and economic union;.
“SADC” means the Southern African Development Community;
“Staff” means officers, employees of the Bank and in certain circumstances include persons
appointed for short term in the Bank.
:: CHAPTER I
Status of the Bank Continued existence of Bank
2.
(1)
Notwithstanding the repeal effected by section 81, the [body corporate / juristic person/
legal person] established by section [. . . .] of the [previous central bank legislation] Act
under the name “Central Bank of [country] / Reserve Bank of [country] / Bank of [country]”,
shall continue to exist and shall conduct the business of a central bank in accordance with
the provisions of the Constitution and of this Act .
The Bank shall be called “Central Bank of [country][country] / Reserve Bank of
[country][country] / Bank of [country][country]” .
(32)
The Bank shall have its Head Office in [city] and may, with approval of the Board:
(a)
establish branches within [country][country]; and
(b)
establish offices abroad.
(3)
The Bank may appoint agents and correspondents within [country][country] and abroad.
Legal form and capacity
CONTINUED EXISTENCE, OBJECTIVES AND FUNCTIONS OF BANK

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3.
(1)
The Bank shall be a [body corporate/juristic person/legal person] with perpetual
succession and a common seal.
(2)
The Bank shall have the legal capacity to-
(a)
enter into contracts and incur obligations;
(b)
sue and be sued in its own name;
(c)
acquire, hold and dispose of property, whether movable or immovable; and
(d)
act in any other way necessary for or incidental to the discharge of its functions under this
Act.
Primary objective of Bank
4.
(a)
The primary objective of the Bank shall be the achievement and maintenance of price
stability.
(b)
Without prejudice to the objective of price stability, the Bank may support the general
economic policies in [country][country].
Operational Iindependence of Bank
5.
(1)
The Bank, in pursuit of its primary objective, and in the performance of its functions under
this Act, shall act independently and without fear, favour or prejudice or direction from any
authority or institution .
(2)
The independence of the Bank shall be observed and -
(a)
no person shall seek to improperly influence any member of the Board, management or
staff of the Bank in the discharge of his or her duties towards the Bank, or otherwise
interfere in the lawful activities of the Bank as provided for under this Act;

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(b)
no member of the Board, management or staff shall seek to be influenced in the conduct of
his or her duties towards the Bank.
Functions and powers of Bank
6.
(1)
The Bank shall _
(A) formulate and implement monetary policy with a view to the achievement and maintenance
of its primary objective as set out set forth in section 4;
(B)
implement the appropriate exchange rate policies as set out in section 523;
(C)
hold and manage the official gold and foreign exchange reserves of [country][country];
(D)
issue notes and coin that are [legal tender/national currency] and regulate all matters
relating to the domestic currency;
(E) establish, conduct, monitor, regulate and supervise, and promote the soundness and
security of, payment, clearing and settlement systems;
(f)
act as banker and fiscal agent to the Government as set out in sections 38(1) and 39; and
(g)
act as banker to banks.
(2)
Notwithstanding the provisions of subsection (1) but subject to the other provisions of this
Act and any other law, the Bank may -
(A)
licence and supervise, as set out in section 51, and regulate the activities of, banks and
financial institutions;
(b)
manage, or assist in the management and administration of, domestic and external debt on
behalf of the Government;
(C)
provide banking services for the benefit of foreign governments, foreign central banks and
monetary authorities, and for the benefit of international organisations in which it or the
Government participates;

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(d)
participate in international financial organisations that pursue financial stability through
international monetary co-operation;
(e)
undertake and discharge responsibilities and perform transactions concerning the
Government’s participation in international organisations;
(F)
act as economic advisor to the Government as set out in section 40(1);
(G)
issue debt securities and determine the terms and conditions of such securities;
(H)
borrow externally;
(i)
acquire shares or a capital interest in any domestic or international institution, company or
other body for the purpose of attaining its objectives in terms of this Act;
(j)
administer foreign exchange legislation ;
(k)
grant secured or unsecured loans and advances to any of its subsidiaries or its
staffemployees for a prescribed purpose in a prescribed manner;
(l)
provide assistance to banks experiencing financial difficulty on an exceptional basis
subject to the provisions of section 5046;
(m)
acquire, in the course of satisfaction of debts due to it, any interests or rights provided that
all such interests or rights so acquired shall be disposed of at the earliest suitable
opportunity; and
(n)
establish staff retirement funds or similar arrangements for the benefit or protection of its
staffemployees and their dependants and nominees and make contributions towards the
costs associated with such arrangements subject to such terms and conditions as it shall
determine.
(3)
The Bank may buy, sell or otherwise -
(a)
deal in financial instruments and, in accordance with the provisions of any law regulating
the safe deposit of securities, hold such financial instruments in safe custody, or cause

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such financial instruments to be held in safe custody, for other persons;
(b)
deal in gold and other precious metals and hold in safe custody for other persons gold, other
precious metals, securities or other articles of value;
(c)
deal in foreign currencies; and
(d)
deal in notes, bills, securities or other instruments of indebtedness issued or guaranteed by
-
(i)
local authorities [in the country];
(ii)
major public entities as listed in [in terms of applicable law]; or
(iii)
any foreign country, and
(e)
discount or re-discount bills of exchange or promissory notes issued for commercial,
industrial or agricultural purposes.
(4)
The Bank may -
(a)
issue its own interest-bearing securities for purposes of monetary policy and buy, sell,
discount or re-discount, or grant loans or advances against, such securities;
(b)
enter into repurchase and/or reverse repurchase agreements with any institution in respect
of interest-bearing securities or such other securities as the Bank may determine;
(c)
effect transfers in accordance with generally accepted banking practice, and sell drafts
drawn on its branches and correspondents;
(d)
open accounts in foreign countries and act as agent or correspondent of any bank carrying
on business in or outside [the country];
(e)
make arrangements or enter into agreements with any institution in a foreign country to
borrow, in such manner, at such rate of interest and subject to such other terms and
conditions as the Bank may deem fit, any foreign currency which the Bank may consider it
expedient to acquire;

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(f)
acquire immovable property required by the Bank for business purposes or for the
purpose of providing a dwelling for any officer of the Bank, and sell, dispose of, donate or
otherwise alienate any such immovable property: Provided that a donation of such
immovable property may only be made with the approval of the Board;
(g)
by notice in writing direct any person to furnish the Bank, within a specified period of time,
with such information as may be specified in the notice and as the Bank may reasonably
require for purposes related to the determination of the balance of payments, for purposes
related to financial and system stability, for statistical reports, or for the performance of
any other of its functions under this Act;
(h)
take steps to contribute towards the achievement and maintenance of financial stability;
(i)
promote the further development of the domestic financial markets and the safe, sound
and efficient operation of and the development of the financial system; and
(j)
co-operate with or assist other domestic or international regulatory authorities in the field
of banking or finance.
(5
)(4)
The Bank may -
(a)
perform any other task incidental to or necessary for the proper exercise of the powers or
the performance of the functions conferred upon or assigned to the Bank in this Act;
(b)
perform such other functions and exercise such other powers, not inconsistent with the
provisions of this Act, as may be assigned or delegated to it or conferred upon it in terms of
any other Act of Parliament; and
(c)
perform such other functions and exercise such other powers as may customarily be
performed and exercised by central banks.
Prohibited activities
7.
Without prejudice to the provisions of section 6(2) and subject to the other provisions of
this Act, the Bank shall not -
(a)
engage in trade except in relation to functions of a central bank as set out in section 6;

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(b)
acquire or purchase shares in corporations;
(c)
accept shares as security;
(d)
acquire immovable property other than in the course of its ordinary business;
(e)
grant unsecured loans;
(f)
enter into risk insurance contracts other than in the furtherance of its own interests; or
(g)
guarantee loans, advances or debts of the Government or Government controlled
institutions or any other institutions.
Capital and ownership of Bank
8.
(1)
Subject to the provisions of subsection (2) –
(a)
the authorised capital of the Bank shall be [amount]; and
(b)
the minimum paid-up capital of the Bank shall be [amount].
(2)
The Bank may increase its authorised or minimum paid-up capital by such amounts and in
such manner as the Board may determine and as approved by [appropriate approving
authority] .
(3)
All the minimum paid-up capital of the Bank shall be subscribed for by the Government,
without compromising the Bank’s independence, and shall not be transferable in whole or
in part or subject to any encumbrance whatsoever .
(4)
The amount of any increase in minimum paid-up capital effected in accordance with
subsection (3) shall be paid in full by the Government .
(5)
Notwithstanding any other provision of this Act the [approving authority], shall cause to be
transferred to the ownership of the Bank negotiable, interest-bearing securities, at market
rate, issued by the Government from time to time, for such an amount as in the judgment
of the Board may be necessary for the purpose of preserving the Bank’s capital from any

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impairment.
(6)
No reduction of the Bank’s capital shall be effected except by virtue of an Act of [the
National Legislature].
:: CHAPTER II
Board of Directors
9.
(1)
There shall be a board of directors of the Bank consisting of -
(a)
the Governor of the Bank, who shall be the chairperson of the Board;
(b)
not more than three Deputy Governors of the Bank any one of whom shall be the Deputy
Chairperson, and
(c)
not less than six other directors.
(2)
The majority of the board of directors shall be non-executive., which board of directors shall
be appointed as hereinafter in this Chapter provided.
Functions and powers of Board
10.
(1)
Subject to the other provisions of this Act, the Board shall be responsible for determining
the policy of the Bank and for such other functions as are specifically conferred or imposed
upon the BoardBank by this Act or any other law.
(2)
Without derogating from the generality of subsection (1), the Board shall have the power to
-
(a)
monitor the implementation of monetary policy in order to ensure compliance with this Act;
INSTITUTIONAL ARRANGEMENTS

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(b)
approve all regulations, guidelines and instructions of general application that are to be
issued by the Bank;
(c)
approve all annual reports and recommendations that the Bank is required to make to the
Minister or to Parliament;
(d)
determine the policies applicable to the administration and operations of the Bank;
(e)
establish and close subsidiaries, branch offices and agencies of the Bank;
(f)
determine the terms and conditions of service of the Governor and Deputy Governor(s);
(g)
determine the terms and conditions of service of the other directors;
(h)
approve the terms and conditions of engagementmployment of the Bank’s agents and
correspondents;
(i)
propose increases in the authorised capital of the Bank, to establish special reserves on
the books of the Bank, to determine the net income of the Bank and to decide what amount
of such net income shall be transferred to any reserve;
(j)
approve the Bank’s budget;
(k)
determine the accounting policies of the Bank and to approve the annual reports and
financial statements of the Bank;
(l)
determine and ensure the establishment of an effective risk management structure; and
(m)
ensure good corporate governance of the Bank.
(3)
The Board may from time to time entrust to or confer upon the Governor such of the
powers and authorities vested in it in terms of this Act as the Board may deem fit.
(4)
The Governor may from time to time entrust to or confer upon a Deputy Governor or
another member of staff or an officer or committee of officers of the Bank any power or
authority entrusted to or conferred upon the Governor by the Board in terms of subsection
(3).

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Appointment of Governor and Deputy Governor(s) and terms of office
11.
(1)
The Governor and the Deputy Governor(s) shall each be appointed by the Head of
State/Government.
(2)
(a)
The Governor and Deputy Governor(s) shall each be appointed for a term of six years.

(b)
The Governor and Deputy Governor(s) shall be eligible for re-appointment after the
expiration of their respective terms of office: Provided that no Governor or Deputy
Governor shall serve more than twelve years in two terms of office in total in their
respective capacity.
(c)
The terms of office of the Governor and the Deputy Governor(s) should not run
concurrently.
(3)
The executive management of the Bank and the direction of its business and affairs shall
vest in the Governor who shall, in the exercise of such function of management, comply
with the policy determined by the Board or any particular directions given by the Board.

(4)
The Governor shall exercise such other powers and carry out such other duties as may be
delegated or assigned to the Governor by the Board.
(5)
The Deputy Governor(s) shall exercise such powers and carry out such duties as may be
delegated or assigned to them by the Governor.
(6)
(a)
The Governor shall have power to act, contract and sign instruments and documents on
behalf of the Bank.
(b)
The Governor may designate in writing any officer of the Bank to perform any of the
Governor’s functions or to represent him or her in his or her official capacity pursuant to the
provisions of this Act.
(7)
(a)
If the Governor is absent or unable to act as such, he or she may designate a Deputy

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Governor to exercise all the powers and perform all the functions of the Governor during
his or her absence or inability to act.
(b)
If the Governor as well as the Deputy Governor(s) are absent or unable to act or to
designate an officer of the Bank as contemplated in subsections (10)(b) and (11)(a), the
Board may designate in writing any officer of the Bank to perform any of the Governor’s or
a Deputy Governor’s functions or to represent the Governor or Deputy Governor(s) in his
or her official capacity pursuant to the provisions of this Act.
or

(1)
The Governor and the Deputy Governor(s) shall each be nominatedappointed by the
Head of State/Government and each such nomination appointment shall be ratified by
the Legislature .
(2)
The ratification of the nomination appointment of the Governor and Deputy Governors
shall be effected as follows:
(a)
The Head of State/Government shall, submit the name of the nominee Governor or
Deputy Governor, as the case may be, to the Legislature;
(b)
the Legislature (upon advice from the relevant specialised committee) shall as soon as
possible, but not later than three months after the receipt of the name of the nominee
consider the potential appointment of the nominee as Governor or Deputy Governor, as
the case may be, in a manner ensuring participation by the public and transparency and
openness of the process;
(c)
on completion of the process of consideration, the Legislature shall either approve or
disapprove of the potential appointment of the nominee as Governor or Deputy Governor,
as the case may be.
(3)
(a)
In the event that the Legislature approves the potential appointmentnominee, the Head of
State/Government shall appoint the nominee as Governor or Deputy Governor, as the
case may be;
(b)
A person appointed under paragraph (a) shall before commencing to perform the
functions of Governor or Deputy Governor, as the case may be, take an oath or

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affirmation, which shall be subscribed by him or her, in the form set out in the First
Schedule.
(4)
In the event that the Legislature disapproves the nominationappointment of the nominee
as Governor or Deputy Governor, as the case may be, the Head of State/Government shall
not appoint the nominee to the position as envisaged, whereupon the process as set out
set forth in subsection (2) shall be repeated until a Governor or Deputy Governor, as the
case may be, is appointed.
(5)
The process for the appointment of the Governors and Deputy Governors, as set out set
forth in subsection (2), shall mutatis mutandis apply in respect of the appointment of a
successor to a Governor or Deputy Governor who becomes incapable of performing his or
her duties in accordance with section 17.
(6)
(a)
The Governor and Deputy Governor(s) shall each be appointed for a term of
six1616161615 years.
(b)
The Governor and Deputy Governor(s) shall be eligible for re-appointment after the
expiration of their respective terms of office: Provided that no Governor or Deputy
Governor shall serve more than twelve years in office two terms of office in total.
(bc)
The terms of office of the Governor and the Deputy Governor(s) should not run
concurrently.
(7)
The executive management of the Bank and the direction of its business and affairs shall
vest in the Governor who shall, in the exercise of such function of management, comply
with the policy determined by the Board or any particular directions given by the Board
pursuant to section 10.
(8)
The Governor shall exercise such other powers and carry out such other duties as may be
delegated or assigned to the Governor by the Board.
(9)
The Deputy Governor(s) shall exercise such powers and carry out such duties as may be
delegated or assigned to them by the Governor.

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(10)
(a)
The Governor shall have power to act, contract and sign instruments and documents on
behalf of the Bank.
(b)
The Governor may designate in writing any officer of the Bank to perform any of the
Governor’s functions or to represent him or her in his or her official capacity pursuant to
the provisions of this Act.
(11)
(a)
Where If the Governor is absent or unable to act as such, he or she may designate a
Deputy Governor to exercise all the powers and perform all the functions of the Governor
during his or her absence or inability to act. (Judge Davies to review)
(b)
Where bothIf the Governor as well asand the Deputy Governor(s) are absent and isor
unable to act or to designate an officer of the Bank as contemplated in subsections (10)(b)
and (11)(a), the Board may designate in writing any officer of the Bank to perform any of
the Governor’s or a Deputy Governor’s functions or to represent the Governor or Deputy
Governor(s) in his or her official capacity pursuant to the provisions of this Act. (Judge
Davies to review)
(c)
Where If the Board determines on reasonable grounds, that the Governor is incapacitated
or his or her office becomes vacant, the Board shall designate a Deputy Governor to
exercise all the powers and perform all the functions of the Governor until the Governor
resumes his or her powers and functions or such vacancy is filled.
(Judge Davies
to review)
Qualification and experience of Governor and Deputy Governor(s)
12.
The Governor and Deputy Governor(s) shall be fit and proper persons of recognised
professional standing and experience in the field of economics, banking, finance, law or
other fields relevant to central banking.

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Terms and conditions of service of Governor and Deputy Governor(s)
13.
(1)
The remuneration and other terms and conditions of service of the Governor and Deputy
Governor(s) shall be determined by the Board.
(2)
The remuneration and benefits of the Governor and Deputy Governors shall be disclosed in
the annual report of the Bank.
(3)
A declaration of assets and liabilities, businesses and financial interests, in the form set out
in the Fourth Schedule, shall, within 30 days of the appointment or of the coming into
operation of this Act, be deposited by the Governor or any Deputy Governor, with the
[Board/Appropriate Authority] in respect of himself or herself, his or her spouse and his or
her minor children.
(4)
The Governor or Deputy Governors shall make a fresh declaration of assets and liabilities,
businesses and financial interests every year and at the expiry or termination of his or her
employment on any ground.
Appointment, qualifications and term of office of other directors
14.
(1)
Each of the other The dDirectors, other than the Governor or Deputy Governor(s)
(hereinafter referred to as “the other directors”), ,shall be fit and proper personss appointed
by the Head of State/Government from among persons of proven knowledge and
experience in the field of central banking, economics, banking, finance, law, business or
commercial or other disciplines relevant to the functions of the Bank. by the Head of
State/Government.
(2) (2)
An appointment under subsection 1 shall be subject to ratification by the legislature (this is
optional)
(3)
Each of the The other directors shall each hold office for a period not more than of three
years and shall after the expiration of his or hertheir respective terms of office be eligible for
re-appointment unless any of such directors during his or her term of office resigns his or

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her office, is disqualified in terms of section 17 or is removed from office in terms of section
22: Provided that no such other director shall serve more than three terms of office in total .
(43)
a person appointed under paragraph (1) shall before commencing to perform the functions
of Director take an oath or affirmation, which shall be subscribed by him or her, in the form
set out in the First Schedule.
Terms and conditions of service of other directors
15.
(1)
The fees and allowances remuneration and other terms and conditions of service of the
other directors shall be determined by the Board.
(2)(4) The fees and allowances of the other directors shall be disclosed in the annual report of the
Bank.
Conflict of interest of Governor, Deputy Governor(s) and other directors
16.
(1)
Subject to subsection (2) the Governor and the Deputy Governor(s) shall not during their
tenure of office engage in any other business, profession or employment, whether
remunerated or not.
(2)
The Governor or a Deputy Governor may, -
(a)
act as a member of any board or commission appointed by the Government;
(b)
serve as a governor, alternate governor, director or member of any organ, by whatever
name called, of any international monetary authority ,or other international financial
organisation established under any agreement or convention to which the Government
has acceded, has an interest in, or given its support or approval; or
(c)
serve as a member of the board of any corporation established by the Government for the
purpose of insuring deposits in a financial institution.
(3)
A The directors shall not act as a delegates or representatives of any commercial, financial,
industrial or other concern or receive or accept directions therefrom in respect of duties to
be performed under this Act.

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(4)
AThe directors shall fully disclose to the Board any commercial, financial, industrial or
other interest which he/shethey, or any member of his/hertheir family, may have and any
other situation which may potentially conflict with the interests of the Bank.
(5)
A No director of the Bank shall not accept any gift or credit for himself or herself, or on
behalf of any person with whom he or she has family, business or financial connections, if
the acceptance would result, or give the appearance of resulting, in a diminishment of his
or her impartial devotion to his or her duties to the Bank.
Disqualifications for membership of Board
17.
(1)
ANo person shall not be appointed as or remain a member of the Board if he or she -
(a)
is or becomes a member of the Cabinet or of Parliament or other executive or legislative
authority as provided for in the Constitution;
(b)
is or becomes a director, officer, employee or owner of or a shareholder in a bank or other
financial institution, or provides or is appointed to provide professional services to the
Bank, any bank or other financial institution;
(c)
is a minor or is or becomes a person under any legal disability or an unrehabilitated
insolvent/bankrupt;
(d)
has been or is convicted of an offence in any country and sentenced in respect thereof to a
term of imprisonment without the option of a fine, whether or not any portion of the
sentence has been or is suspended, and he or she has not received a pardon;
(e)
has been or is convicted of an offence involving dishonesty in any country and sentenced
in respect thereof to a fine of any amount or to a term of imprisonment of any duration or to
both such fine and such imprisonment, whether or not any portion of the sentence has
been or is suspended;
(f)
has been disqualified or suspended from practising any profession on the grounds of
professional misconduct or dismissed from a position of trust due to misconduct;

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(g)
is or becomes unable to perform, or is or becomes mentally or physically incapable of
performing his or her duties as such a member;
(H)
is an employee of Government; or
(I)
is politically active.
(2)
It shall be the duty of the Chairperson to ensure compliance with the provisions of
subsection (1).
Meetings of Board
18.
(1)
The Board shall meet as often as the business of the Bank may require but at least once
every three months.
(2)
The quorum for a meeting of the Board shall be two thirds of the members thereof.
(3)
The decision of the simple majority of directors present at any meeting shall constitute the
decision of the Board: Provided that in the event of an equality of votes, the Chairperson
shall have a casting as well as a deliberative vote.
(4)
(a)
The Governor shall preside at the meetings of the Board, and in the event of his or her
absence from any meeting or inability, for any other reason, so to preside, a Deputy
Governor designated by the Governor shall preside.
(b)
If, for any reason, the Governor was unable to make a designation contemplated in
paragraph (a), the Board shall make such designation.
Rules by Board
19.
(1)
The Board may make rules, not inconsistent with the provisions of this Act, for the good
governance of the Bank, the conduct of its business and the appointment and conditions
of service, including remuneration and gratuities or other pension benefits, of staffofficers
and employees.

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(2)
The power of the Board to make provision for the staffofficers and employees of the Bank
shall include the power to provide for, or in respect of, those of its staff officers and
employees that die or retire, and their surviving dependants.
Committees of Board
20.
(1)
The Board may establish such committees as it may deem necessary and on such terms
and conditions as it may determine, with a view to assisting it in the effective exercise and
performance of its powers, functions and duties and may at any time enlarge, reduce or
dissolve any such committee.
(2)
(a)
Without prejudice to the generality of subsection (1) the Board shall establish an Audit
Committee, a Remunerations Committee and a Directors’ Affairs Committee.
(b)
Each committee shall appoint its own chairperson.
Resignation of members of Board
21.
(1)
The Governor or a Deputy Governor may resign from office on written notice to the Head
of State/Government.
(2)
The other directors may resign from the Board in writing with immediate effect.
Removal of Governor, Deputy Governor and other directors
22.
(1)
Whenever it appears to the Head of State/Government that a Governor, Deputy Governor
or other director of the Board may not be fit and proper to continue holding such office,
he/she shall appoint a tribunal/commission, which shall consist of a chairperson, who
shall be a person that holds or has held high judicial office, and not less than [three] or
more than [five] other persons, to inquire into the matter and submit the facts, thereof to
the Head of State/Government.

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(2)
Where a tribunal/commission appointed under subsection (1) advises the Head of
State/Government that the Governor, Deputy Governor and other director concerned
ought to be removed from office, the Head of State/Government shall remove such
person from the board.
(3)
The decision of the tribunal/commission shall not be subject to appeal and such decision
along with the tribunal’s/commission’s findings shall be forwarded to Parliament for
information by the Chairperson of the tribunal/commission.
(4)
An investigation as contemplated in subsection (1) against the Governor, Deputy
Governor or any director, may only be commenced on one or more of the following
grounds:
(a)
breach of any provision of this Act;
(B)
serious misconduct;
(C)
incompetence; or
(d)
dereliction of duty.
(5)
At the time of the appointment of the tribunal/commission, the Head of State/Government
may, where the person concerned is the Governor or a Deputy Governor, send him or her
on leave, and in the case of any other director temporarily suspend him or her from the
Board as a director.
Staff of Bank
23.
Subject to the general terms and conditions of service applicable to staff of the Bank, and
to the rules made by the Board, the Governor shall be responsible for the appointment,
termination of service and discipline of the staff of the Bank.

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:: CHAPTER III
MONETARY POLICY COMMITTEE
Monetary Policy Committee
24.
(1)
There is hereby established in the Bank a committee, to be known as the Monetary Policy
Committee.
(2)
The Monetary Policy Committee shall have the responsibilityresponsibility offor advising
on the formulation and implementation of the monetary policy of [the country].
(3)
The Monetary Policy Committee shall formulate rules of procedure to be followed at its
meetings, including the quorum for a meeting, frequency of meetings and the manner of
decision-taking by the Committee.
(4)
Notwithstanding the provisions of this section, the Governor shall be accountable and
have final responsibility for implementation of monetary policy.
Composition of Monetary Policy Committee
25.
(1)
The Committee shall consist of -
(A)
the Governor, who shall be the chairperson;
(B)
the Deputy Governor(s);
(c)
two other persons appointed by the Head of State/Government, which persons -
(i)
are not members of staffemployees of the Bank nor Public Officials and ;
(ii)
are persons of recognised professional or academic standing and experience in the fields
of economics, banking, finance or other fields relevant to central banking; and

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(D)
two senior members of the staff of the Bank, appointed by the Governor, of which –
(i)
one shall be a person who has senior management responsibility within the Bank for
Economic Research; and
(Ii)
the other shall be a person who has senior management responsibility within the Bank for
Monetary Policy operations.
(2)
The persons appointed in terms of subsection (1)(c) shall –
(a)
hold office for a period of three years and devote all their time to the functions of the
Monetary Policy Committee; and
(b)
be remunerated at a rate to be determined by the Board from time to time.
(3)
Notwithstanding the provisions of this section, the Governor shall be accountable and
have final responsibility for implementation of monetary policy.
(4)
Members of the Monetary Policy Committee –
(a)
shall be subject to the provisions relating to disqualification and removal from office of the
directors of the Board; and
(b)
may be removed from office for contravention of the Monetary Policy Committee Code of
Conduct which is set out in the Third Schedule.
(45)
A person appointed under subsection (1) shall before commencing to perform the
functions of the Monetary Policy Committee take an oath or affirmation, which shall be
subscribed by him or her, in the form set out in the First Schedule.
Publication of statement of decisions
26.
(1)
After each meeting the Monetary Policy Committee shall publish in a manner which the
Bank deems fit, a statement of decisions made.
(2)
In addition to the statement referred to in subsection (1), the Monetary Policy Committee

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shall publish at least once a year a Monetary Policy Review Report of [the country].
Publication of minutes
27.
After each meeting the Monetary Policy Committee may publish minutes of the meeting in
such a manner as the Bank deems fit.
:: CHAPTER IV
MONETARY UNIT, BANKNOTES AND COIN/ NOTES ISSUE
Monetary Unit
28.
(1)
The monetary unit of the [country][country] shall be [currency], divided into one hundred
, the symbols for which shall be “ ” and “ ”, respectively.
(2)
[currency] shall be legal tender in the [country][country].
Authority to issue Banknotes and Coin
29.
The Bank shall be the sole issuer of banknotes and coin as legal tender which shall be the
currency lawfully in circulation within the territory of [the country].
Legal tender
30.
Banknotes and coin issued as legal tender by the Bank and not withdrawn from circulation
shall be accepted, at their face value, in payment of all public and private debts in the
country.

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Currency features
31.
The Bank shall , after consultation with the Minister, determine by regulation the face value,
measures, weights, designs and other features of the banknotes and coin that are legal
tender in [the country].
Currency production and safekeeping
32.
The Bank shall have all such powers and make all such arrangements as may be necessary
for the printing of notes and the minting of coins, for the security and safekeeping of
unissued banknotes and coin, and for the custody and destruction, as necessary, of plates,
dies, and withdrawn banknotes and coin.
Currency exchange
33.
Upon request, the Bank shall exchange, without charge or commission, banknotes and coin
that are legal tender.
Management of uUnfit currency, currency inventory and issue plan
34.
(1)
Unfit currency shall be withdrawn and, destroyed, and replaced by the Bank. For the
purposes of this section unfit currency means currency that has lost its security features and
includes soiled, defaced, illegible, perforated and mutilated in any other way.
(2)
The Bank shall directly administer the currency reserve inventory, make issue plans, and
ensure the regular supply of banknotes and coin, in order to meet the currency
requirements of the economy.

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Exchange of mutilated currency
(2)35.
(A)
(1)
The Bank may decline to exchange banknotes or coin if they are mutilated, their designs
are illegible, misshapen or perforated, or if more than [forty percent] of their surface has
been lost.
(2b)
Such currency shall be withdrawn and destroyed without compensation to the owner,
except that, in the discretion of the Bank, the Bank may grant compensation in whole or in
part.
(2)(3)
The Bank –
(iii)(a)
shall not be required to provide any compensation for banknotes or coin that were lost,
stolen or destroyed;
(b)
may confiscate without compensation any banknotes that have been altered in their
external appearance, including in particular banknotes that have been written on, painted
on, dye-stained, stamped or perforated, or to which adhesive matter has been applied.
(4)
The Bank shall directly administer the currency reserve inventory, make issue plans, and
ensure the regular supply of banknotes and coin, in order to meet the currency
requirements of the economy.
Accounting treatment of currency issued
35.
The aggregate amount of circulating banknotes and coin shall be noted in the accounts of
the Bank as a liability of the Bank, which liability shall not include banknotes and coin in the
currency reserve inventory.
Currency recall
36.
(1)
The Bank may call in and withdraw from circulation any banknotes or coin that are

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circulating within the territory of the [country][country], and may issue in exchange therefor
other banknotes or coin of equivalent amounts.
(2)
The withdrawal from circulation of banknotes or coin shall be implemented by way of a
regulation of the Bank in which shall be specified the period during which the banknotes or
coin must be presented for exchange and the offices of the Bank where they are to be so
presented.
(3)
At the end of the exchange period referred to in subsection (1), banknotes and coin called
in for exchange shall cease to be legal tender.
:: CHAPTER V
RELATIONSHIP WITH GOVERNMENT
Adviser to Government
37.
(1)
The Bank may act as economic adviser to the Government on matters within the
competence of the Bank.
(2)
The Minister may request the Bank to render economic advice and to furnish reports on
matters relating to the objectives and functions of the Bank and other matters within the
competency of the Bank and likely to affect such functions.
Banker to Government
38.
(1)
Subject to the other provisions of this Act, the Bank shall be banker to the Government on
such terms and conditions as may be agreed between the Bank and the Minister.
(2)
Notwithstanding the provisions of subsection (1) -
(a)
the Bank may appoint any financial institution or bank to act as its agent in the execution of
the Government’s banking business; and

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(b)
the Government may maintain cash balances with and generally use the services of any
financial institution or bank: Provided that the Government shall be required to provide
information on such cash balances to the Bank.
Fiscal agent
39.
The Bank -
(a)
shall be fiscal agent for the Government; and
(b)
may, upon designation by the Minister, serve as a depository or financial intermediary for
any international financial institution of which [country][country] may be a member.
Lending to Government
40.
The Bank shall not –
(a)
directly or indirectly make advances or provide any other credit to the Government; or
(b)
except for the purpose and in the manner specified in section 41(1), acquire the notes,
bills, securities or other evidences of debt of, or guaranteed by the Government. or
40.
(1)
Subject to the other provisions of this Act, the Bank shall not, directly or indirectly, make
advances or provide any other credit to the Government or acquire the notes, bills,
securities or other evidences of debt of, or guaranteed by, the Government: Provided
that this section shall not be construed as prohibiting the acquisition by the Bank of
securities or its granting advances in accordance with the provisions of this Act .
(2)
Notwithstanding the provisions of subsection (1) the Bank may grant temporary
advances to the Government in respect of short-term deficiencies of current budget
revenues with all such loans being collateralised by debt securities in bearer form with
interest at market rates subject to repayment within six months following the end of the

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financial year in which they were granted.
(3)
Notwithstanding subsection (2), such advances to the Government and the holdings by the
Bank of notes, bills, securities or other evidences of debt of, or guaranteed by, the
Government, exclusive of credit permitted under the provisions of subsection (4) and
section 57(2), shall not exceed such per cent prescribed by regulation from time to time of
the annual average of the Government’s ordinary revenue for the three financial years
immediately preceding for which accounts are available .
(4)
Notwithstanding the provisions of subsection (3), the Bank may, in exceptional
circumstances, grant a temporary waiver of the limit specified in that subsection, but only if
such waiver would not be inconsistent with monetary policy objectives of the Bank and only
if such waiver would not cause the aggregate principal amount disbursed and outstanding
on all central bank advances to the Government to exceed the equivalent of such percent
prescribed by regulation from time to time of the annual average of the Government’s
ordinary revenue for the three financial years immediately preceding for which accounts are
available.
(5)
If any advances granted by the Bank under this section remain outstanding, irrespective of
maturity, after the above-mentioned six-month period, the Bank shall make no further
advances to the Government unless and until the outstanding advances have been repaid,
the outstanding amount has been set off against profits at the end of the financial year or
appropriate security has been provided to the Bank as agreed upon between the Bank and
the Minister.
(6)
If in the opinion of the Bank, the limit of such per cent prescribed by regulation from time to
time specified in subsection (3) is in danger of being exceeded, the Bank shall submit to the
Minister and to Parliament a report on the Bank’s disbursed and outstanding advances to
the Government and the causes that may lead to such excess, together with such
recommendations as it may deem appropriate to forestall or otherwise remedy the situation
and where the limit provided in subsection (4) is exceeded, the Bank shall further make such
reports and recommendations as it may deem appropriate in order to remedy the situation
and avoid its recurrence in the following financial year.
(7)
Without restricting the generality of subsection (2), the Bank may grant advances to the
Government, on such terms and conditions as may be agreed between the Bank and the
Minister, in respect of subscriptions and other payments resulting from, or incidental to, the
membership of [country][country] of any international financial institution, the participation

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of [country][country] in any account thereof, and any transactions and operations
undertaken in connection therewith.
(8)
For the purposes of subsections (3) and (4) the ordinary revenue of the Government shall
include revenues from taxes, levies, duties and fees, rent, profit and income from any
investment or undertaking by the Government but shall not include loans, grants, other
forms of economic aid or capital raised.
Acquisition of securities issued or guaranteed by Government
41.
(1)
For purposes of the implementation of monetary policy the Bank may, operate in the open
market by purchasing and selling debt securities issued or guaranteed by the Government.
(2)
Except for purposes of implementation of monetary policy, the Bank may not purchase, for
its own account, debt securities issued or guaranteed by the Government. Any such
purchases will be treated as Bank advances to the Government and therefore are
prohibited in terms of section 40.
or
41.
(1)
The Bank may, in its implementation of monetary policy, operate in the open market by
purchasing and selling debt securities issued by the Government.
(2)
The Bank may purchase for its own account, debt securities issued by the Government
other than in accordance with subsection (1), but such purchases shall be treated as Bank
advances to the Government and therefore be subject to the overall limits specified in
section 40.
Management of public debt
42.
When authorised by the Minister or by law to do so, and on such terms and conditions as
may be agreed upon between the Minister and the Bank, the Bank shall act as agent for the
Government in the payment of interest and principal in respect of the issue and
management of the public debt of [country][country].

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Consultation and exchange of information
43.
(1)
Without prejudice to the powers of the Bank to formulate and implement monetary policy
and to any other provisions of this Act, the Bank shall consult with the Minister in areas
necessary to ensure co-ordination between monetary and fiscal policies.
(2)
The Bank shall be entitled to receive from the Government or any Government
Department or agency all such financial and economic information or documentation as
the Bank may reasonably require for the purpose of the discharge of its functions under
this Act.
Policy disputes with Government
44.
(1)
In the event of a dispute between the Bank and the Minister in connection with any policy
adopted by the Bank in the discharge of its functions under this Act, the parties shall
endeavour to resolve the dispute amicably in the shortest possible time from the date the
dispute arises.
(2)
If amicable resolution of the dispute is not achieved as provided for in subsection (1),
either party may refer the dispute to a tribunal chaired by an expert appointed by the Chief
Justice and consisting of not less than two but not more than four other members
appointed equally by each of the parties.
(3)
The parties shall deliver to the Chief Justice a written statement clearly setting out the
nature of the dispute and the remedy sought.
(4)
Upon receipt of the statements referred to in subsection (3), the Chief Justice shall, within
the shortest possible time, appoint an expert referred to in subsection (2).
(5)
The Tribunal shall after affording both parties a reasonable opportunity to make
submissions, proceed to make a determination of the dispute within the shortest possible
time from the date of the referral mentioned in section 44(2) and the decision of the
tribunal shall be final and binding upon both parties.

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(6)
The Chief Justice shall fix the fees payable to members of the tribunal which fees shall be
borne equally by the parties.
:: CHAPTER VI
Banker to banks
45.
The Bank may open accounts for, and accept deposits from banks doing business in [the
country] upon such terms and conditions as the Bank may from time to time determine.
Accommodation of banks
46.
(1)
The Bank may -
(a)
purchase from, sell to, discount and rediscount for banks bills of exchange and promissory
notes drawn or made of types approved by the Bank;
(b)
purchase from, sell to, discount and rediscount for banks any treasury bills of the
Government forming part of a public issue and maturing within [period] days of the date of
their acquisition by the Bank;
(c)
grant to banks advances, whether by loans or overdrafts, for periods not exceeding
[period] days and secured by -
(i)
instruments specified in paragraphs (a) and (b);
(ii)
warehouse warrants and documents of title issued in respect of staple commodities or
other goods duly insured: Provided that the Bank shall determine from time to time the
maximum percentage of advances in relation to the current value of such commodities or
goods;
RELATIONSHIP WITH BANKS AND OTHER FINANCIAL INSTITUTIONS

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(Iii)
holdings of any of such assets as the Bank is permitted to buy, sell, or deal in under
paragraphs (a), (b) and (c) of section 58; or
(iv)
securities issued or guaranteed by the Government, its institutions or agencies;
Provided that no advance shall be made available under this section to a bank if the total
of advances made by the Bank to such bank cumulatively is equal to or exceeds [amount]
per cent of the deposit liabilities of that bank.
(2)
Notwithstanding the provisions of subsection (1), the Bank may in exceptional
circumstances -
(a)
grant advances or contingent commitments to banks if in the opinion of the Bank, such
advance or commitment is necessary having regard to the financial condition of the bank
and the public interest;
(b)
grant emergency liquidity assistance to a bank grant emergency liquidity assistance to a
bank in distress - in distress
(i)
in the case of a bank which in the opinion of the Bank constitutes no systemic risk to the
banking sector, at market price;
(ii)
in the case of a bank which in the opinion of the Bank constitutes a systemic risk to the
banking sector at such price as the Bank, after consultation with the Minister, deems fit.
Provided that:
(i)
the Bank is satisfied that the bank in distress will be able to repay the amount of
emergency liquidity assistance provided, including any additional cost, and adequate
arrangements regarding the repayment have been made;
at such punitive price as the Bank in consultation with the Minister deems fit: Provided
that - the bank is solvent;
(iii)(ii)
Provided that the Bank is satisfied that the bank in distress will be able to repay the
amount of emergency liquidity assistance provided, including any additional costs, and
adequate arrangements regarding the repayment have been made;

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(iii)
the Minister has concurred in writing with the advance or commitment within 24 hours of a
proposal having been submitted by the Bank to that effect; and (Judge Davies to review)
((iv)
the Minister has confirmed in writing that separate funds or debt securities in bearer form
with interest at market rates will be made available by the Government to cover the
advance or full amount of the commitment provided in the event that it is realised.
(c)
purchase from, sale to, discount and rediscount from banks from any other instrument
approved by the Bank.
(3)
The discount operations of the Bank shall be subject to such other terms and conditions,
including the discount rate, as the Bank may establish by regulation.
(4)
Notwithstanding the provisions of this section the Bank may, without providing any reason,
refuse to discount any of the beforementioned instruments.
Publication of Bank’s rates
47.
The Governor shall fix and publicly announce from time to time the rates for discounts,
rediscounts, advances, loans or overdrafts.
Cash reserve requirements for banks
48.
(1)
(a)
The Bank may, from time to time, prescribe by notice in the Gazette and by written notice to
the main office in [country][country] of each bank, the maintenance by banks of required
reserves, including marginal required reserves, against deposit and other similar liabilities
of the banks that may be specified for this purpose.
(b)
Such reserves shall be maintained by way of cash holdings by the bank or by way of
deposits in current account with the Bank, or both in such proportion as the Bank may
prescribe.
(2)
The Bank may prescribe different reserve ratios for different classes of deposit and other
similar liabilities and may prescribe the method of their computation: Provided that -
(a) the reserve ratios shall be uniform for all banks in the same class but the ratios may differ

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between different classes of banks; and
(b)
any such prescription of, or change in the required reserve ratios shall be effective only
after reasonable notice thereof has been communicated to the banks.
(3)
Required reserves held with the Bank may, subject to such charges as may be prescribed
by the Bank, be withdrawn by the banks for the purpose of meeting their existing liabilities
and may further serve as a basis for the clearance of cheques and the settlement of
balances among banks: Provided that any such withdrawal shall be repaid by the bank
concerned within such period as shall be prescribed by the Bank.
(4)
(a)
The Bank may impose on any bank that fails to maintain required reserves in the
appropriate ratio prescribed under this section a penalty rate that is higher than the rate
fixed at the time by the Bank pursuant to section 47 for any of its operations, on the amount
of the deficiency for so long as the deficiency continues.
(b)
Such penalty shall be payable to the Bank on such date as may be prescribed by the Bank
and may be recovered by deduction from any balance of the bank with the Bank.
Disclosure by banks and other financial institutions
49.
(1)
The Bank may, from time to time, prescribe by notice in the Gazette and written notice to
the main office in [country][country] of each bank the manner of disclosure to the public of -
(a)
the effective annual interest rate payable in respect of deposits made therewith;
(b)
the terms of obtaining credit including the effective annual interest rate payable in respect
thereof; and
(c)
fees, commissions and any such charges payable.
(2)
The provisions of subsection (1) may, by notice in the Gazette and written notice to the
persons concerned, be made applicable by the Bank, to every person having as a
principal object the extension of credit to the public generally or to particular members
thereof, that, in the ordinary course of business, during any calendar year so extends

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credit to an amount to be determined from time to time by the Board.
(3)
Notices issued under this section shall apply uniformly in [country][country] and shall
come into effect on a date specified in the notice, which shall be a date not earlier than
[amount] days after the issue date: Provided that the Bank in such notices may
differentiate, according to the nature of their business, between banks, credit institutions
and other creditors or classes thereof in respect of the items set out in subsection (1).
(4)
Any bank in violation of subsection (1) may be required to pay to the Bank for each such
violation a penalty charge as prescribed by notice in the Gazette.
Consultation with banks and other financial institutions and collection of information
50.
The Bank shall be entitled to receive from banks and financial institutions all such
information or documentation as the Bank may reasonably require for purposes of the
discharge of its functions under this Act.
Regulation and supervision
51.
The Bank may perform such regulatory and supervisory functions and exercise such
powers as may be assigned to or conferred upon it in terms of the [relevant legislation].

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:: CHAPTER VII
INTERNATIONAL RESERVES AND FOREIGN EXCHANGE OPERATIONS
Exchange rate policy
52.
(1)
Without prejudice to the provisions of this Act, the exchange rate policy shall be formulated
by the Government in consultation with the Bank.
(2)
The Bank shall be responsible for the implementation of the exchange rate policy in cooperation, to the extent necessary, with the Government and any other relevant agencies
.
Maintenance of official international reserves
53.
(1)
The Bank shall hold the official international reserves in any currency or instrument as may
be approved by the Bank.
(2)
The Bank shall hold on its balance sheet and prudently efficiently manage the official
international reserves of [the country] at a level which seeks to comply with the primary
objective of the Bank as set out in Section 4.with the objective, while assuring their safety
of principal and liquidity, of maintaining these reserves at a level which, in the Bank’s
opinion, shall be adequate for the execution of the monetary and foreign exchange
policies of the country and for the prompt settlement of the country’s international
transactions.
(3)
If the official international reserves decline or, in the opinion of the Bank, are in danger of
declining to such an extent as to jeopardize the execution of the Bank’s primary
objectivemonetary or foreign exchange policies of [country] or the prompt settlement of
the country’s international transactions, the Bank shall submit to the Minister a report on
the official international reserve position and the causes which have led or may lead to
such a decline, together with such recommendations as it considers necessary to remedy
the situation.

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(4)
Until such time as, in its opinion, the situation has been rectified, the Bank shall submit such
further reports and recommendations as it deems advisable.
Bank depository of official international reserves
54.
The Bank shall be the sole depository of official international reserves: Provided that the
Bank may designate such agents as it may select with whom these reserves may be held.
Authorised transactions
55.
Without derogating from the generality of the provisions of section 6(3)(b), 3(c), (3)(d)(iii)
and (4)(d), the Bank may for purposes of the maintenance of international reserves and the
conduct of foreign exchange operations -
(a)
buy, sell or deal in gold coins or bullion or other precious metals;
(b)
buy, sell, or deal in foreign exchange, using for these purposes any of the instruments
commonly used by bankers;
(c)
purchase and sell treasury bills and other securities issued or guaranteed by foreign
governments or international institutions;
(d)
open and maintain accounts abroad;
(e)
open and maintain accounts and act as agent or correspondent for foreign central banks,
foreign financial institutions, foreign governments, foreign government agencies and
institutions and international institutions; and
(f)
enter into any other transaction authorised by the Board.
Limitation of contracting parties
56.
The Bank shall in connection with the operations enumerated in section 59 deal only with
banks and financial institutions operating in [country][country], the Government and its
boards and agencies, local government bodies, foreign central banks, foreign financial
institutions, foreign governments, foreign government agencies and institutions,

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international institutions and such other parties as the Bank may approve.
Treatment of unrealised gains or losses on certain assets or liabilities
57.
(1)
Any net unrealised gains in any financial year of the Bank arising from changes in the
valuation of its assets or liabilities in, or denominated in, gold, Special Drawing Rights, or
foreign currencies as a result of any change in the values or exchange rates of gold,
Special Drawing Rights or foreign currencies in terms of the domestic currency, shall be
reflected in the profit and loss account and be credited to a non-interest-bearing
Revaluation Reserve Account.
(2)
Any net unrealised losses in any financial year of the Bank arising from any such changes
shall be reflected in the profit and loss account and be set off against any credit balance in
the Revaluation Reserve Account at the end of the financial year and, if such balance is
insufficient to cover such losses, notwithstanding any other provision of this Act the
Government shall issue to the Bank non-negotiable non-interest-bearing government
securities to the extent of the deficiency which shall be delivered to the Bank within sixty
days from the date of certification of the accounts by the auditor.
(43)
Any credit balance in the Revaluation Reserve Account at the end of each financial year of
the Bank shall be applied first, on behalf of the Government, to the redemption of all
securities issued under subsection (2), while the remaining credit balance, if any, shall be
retained in the account to offset future unrealised losses.
(54) No credits or debits shall be made to the Revaluation Reserve Account except in
accordance with the provisions of this section.
(65)
The Bank shall within [period] months after the close of each financial year submit to the
Minister a copy of the annual accounts and a statement showing changes in the valuation
of its assets or liabilities in, or denominated in, gold, Special Drawing Rights, or foreign
currencies as a result of any change in the values or exchange rates of gold, Special
Drawing Rights or foreign currencies in terms of the domestic currency, certified by the
auditors.

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::CHAPTER VIII
PAYMENT, CLEARING AND SETTLEMENT SYSTEMS
Payment, clearing and settlement systems
58.
(1)
The Bank shall perform such functions and exercise such powers as may be assigned to or
conferred upon it in terms of the [payment system legislation] or any other law regulating
payment, clearing and settlement systems.
(2)
For the purposes of subsection (1), the Bank may –
(a)
implement such rules and procedures and, in general, take such steps as may be
necessary to establish, conduct, monitor, oversee, regulate, supervise and promote the
soundness and security of the payment, clearing or settlement systems; and
(b)
participate in any such payment, clearing or settlement systems.

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CHAPTER IX
ACCOUNTS AND REPORTING REQUIREMENTS
Financial year
59.
The financial year of the Bank shall be fixed by the Board and published by notice in the
Gazette.
Accounts and audit
60.
(1)
The accounts of the Bank shall be audited annually by independent external auditor(s)
appointed by the Board, from public accounting firms of good repute.
(2)
The Board shall ensure that such auditors shall be appointed annually for every financial
year and that the same auditors shall not serve the Bank for a period exceeding five years
in succession.
(3)
Without prejudice to subsection (1), the Auditor General/Council of Auditors may examine
and report on the accounts of the Bank or any aspect of its operations.
(4)
Unless otherwise provided for in this Act the accounts of the Bank shall be kept in
accordance with the international accounting practice relevant to central banking.
Annual report
61.
(1)
The Bank shall within [period] months after the close of each financial year submit to the
Minister a copy of its annual report containing among other information, the annual
accounts, the operations of the Bank, report on the state of the economy and the conduct
of monetary policy which report shall also be published.
(2)
The Minister shall as soon as possible after receipt thereof -

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(a)
cause a copy of the annual report to be laid before Parliament; and
(b)
cause a copy of the annual accounts to be published in the Gazette.
Report to Parliament
62.
The Governors shall appear before Parliament at least twice a year and at any other time
as Parliament or the Governor may request, to report, amongst others, on the current
operations and affairs of the Bank, the state of the economy and the conduct of monetary
policy.
Monthly return
63.
The Bank shall within a period of 30 days after the last business day of each month -
(a)
prepare and publish in the Government Gazette a return of its assets and liabilities as at the
close of business on the said last business day; and
(b)
deliver a copy of the return to the Minister.
CHAPTER X
PROFITS AND RESERVES
Determination of net profits
64.
The net profits of the Bank for each financial year shall be determined in accordance with
best international accounting practice after allowing for the expenses of operation for that
year and after providing -
(a)
for bad and doubtful debts, depreciation in assets, contributions to staff funds, staff pension
funds, all such items as are usually provided for by central banks and other charges; and
(B)
with the approval of the Minister, for such other items as the Board may deem necessary.

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Appropriation of net profits
65.
(1)
The Bank shall establish a General Reserve to which shall be allocated at the end of each
financial year of the Bank an amount equal to [amount] per cent of the net profits until the
General Reserve amounts to [number] times the paid-up capital of the Bank.
(2)
The Bank may, with the approval of the Minister, increase the total amount of the General
Reserve.
(3)
After the allocation to the General Reserve has been made under subsection (1), [amount]
per cent of the remainder of the net profits for the financial year shall be applied to the
redemption of any securities issued by the Government and transferred to the ownership
of the Bank under section 8(5).
(4)
Subject to the provisions of section 40(5), the balance of the net profits for the financial
year remaining after all deductions under subsections (1) and (3) have been made shall
be paid to the Government as soon as practicable after the end of the financial year.
(5)
No deduction authorised under subsections (1) and (3) shall be required to be made nor
shall any payment under subsection (4) be made if, in the judgement of the Board, the
assets of the Bank are, or after the deduction or payment will be, less than the sum of its
liabilities and paid-up capital.
Treatment of net losses
66.
(1)
If the Bank incurs a net loss during any financial year such loss shall be charged to the
General Reserve and if the General Reserve is inadequate to cover the full amount of the
loss, the balance of the loss shall be carried forward to the General Reserve.
(2)
The Government shall, within one month after submission by the Bank of a statement
confirming the balance of the accumulated losses, deliver to the Bank funds, negotiable
securities dated and bearing market related terms and conditions or foreign exchange in
such amount or amounts as shall be necessary to correct the deficit.

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CHAPTER XI
GENERAL PROVISIONS AND CONTINUED EXISTENCE
Furnishing of information
67.
(1)
The Bank may, at such time and in such manner as it may prescribe, require any person to
furnish such information and data as the Bank may require for the proper discharge of its
functions and responsibilities: Provided that in order to verify compliance with the
provisions of sections 49 and 50 the Bank may require any person that is or was subject to
any of those provisions to open its books for inspection.
(2)
The Bank may, at such times as it may decide, publish in whole or in part in aggregate form
for classes of banks determined in accordance with the nature of their business the
information or data furnished under subsection (1): Provided that no information shall be
published which would disclose the affairs of any person that is a customer of a bank
unless the consent of such customer has been obtained in writing.
Oath/affirmation of secrecy
68.
Every person appointed under this Act or employed by the Bank shall take and subscribe
before a Commissioner of Oaths an oath/affirmation of secrecy as set out in the Second
Schedule of this Law.
ity
69.
(1)
No person that is in the employment of the Bank and no member of the Board, member of
the Monetary Policy Committee or agent of the Bank shall disclose any
information that he or she acquires or has acquired in the course of the performance of his
or her duties, relating to the affairs of the Bank, a bank or any financial institution, to any
person except -

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(a) f
or purposes of the performance of his or her duties or the exercise of his or her powers in
terms of this or any other law;
(b)
when required to do so by a court of law or under any law;
(c)
when information is requested pursuant to the provisions of section 60(3); or
(d)
for the purposes of meeting the requirements of on agreement or understanding reached
by the Bank with any other central bank or relevant supervisory body.
(2)
Where disclosure is made in accordance with subsection (1), the provisions of that
subsection shall mutatis mutandis apply to the recipient of the relevant information.
(3)
The Bank may share information with other central banks and international institutions
subject to such conditions regarding the treatment and utilisation of such information by
the recipient as the Bank may deem necessary to stipulate: Provided that information
obtained by the Bank in its capacity as supervisory authority of banks or other financial
institutions may only be shared with other such supervisory authorities.
Immunity from personal liability
70.
The Governor, a Deputy Governor, any other member of the Board or Monetary Policy
Committee or any other officer or employee of the Bank shall not be personally liable for
any loss sustained by or damage caused to any person as a result of anything done or
omitted to be done by the Governor, Deputy Governor, such member or officer or
employee in the performance of his or her official duties under this Act, unless it is
established that the relevant act was performed or the relevant omission occurred in in
bad faith.
Offences relating to Bank’s independence
71.
Any person who interferes with the independence of the Bank or who influences another
person to interfere in the operations of the Bank shall be guilty of an offence and on
conviction liable to a fine not exceeding [amount] or to imprisonment for a period not
exceeding [term] years or to both such fine and such imprisonment.

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Offences relating to directorship and acceptance of gifts
72.
Any -
(a)
member of the Board that acts as delegate or representative of any commercial, financial,
industrial or other concern, or receives or accepts directions from such concern in relation
to such director’s duties under this Act;
(b)
member of the Board that does not fully disclose to the Board any commercial, financial,
industrial or other interest that he or she, or any member of his or her family, may have and
which becomes the subject of consideration or action by the Board; or
(c)
member of the Board or any officer or employee of the Bank that accepts any gift or
advantage for himself or herself, or on behalf of any person with whom he or she may have
any family, business or financial connection, the acceptance of which gift or advantage
would result or give the appearance of resulting in a diminishment of his or her impartial
devotion to his or her duties under this Act,
shall be guilty of an offence and liable on conviction -
(i)
in the case of an offence referred to in paragraph (a), to a fine not exceeding [amount] or to
imprisonment for a period not exceeding [term] years or to both such fine and such
imprisonment; and
(ii)
in the case of an offence referred to in paragraph (b) or (c), to a fine not exceeding [amount]
or to imprisonment for a period not exceeding [term] years or to both such fine and such
imprisonment.
Offences relating to currency
73.
(1)
Any person who -
(a)
counterfeits or performs any part of the process of counterfeiting a note or coin of the Bank,
that is legal tender, whether in [country][country] or abroad;

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(b)
counterfeits or unlawfully alters or unlawfully issues a note or coin of the Bank or something
purporting to be a note or coin of the Bank;
(c)
utters, tenders, accepts or has in his or her possession any such note or coin which has been
counterfeited, or unlawfully altered, issued, produced or reproduced while he or she knows,
or should reasonably have known, it to be counterfeited, forged or unlawfully altered, issued,
produced or reproduced;
(d)
without the authority of the Bank, produces, reproduces, engraves or makes upon any
material whatsoever any words, figures, letters, marks, lines or devices the print whereof
resembles in whole or in part any words, figures, letters, marks, lines or devices peculiar to
and used in or upon any note or coin of the Bank which is legal tender;
(e)
without the authority of the Bank, uses, makes, mends, obtains or knowingly has in his or her
possession -
(i)
any material whatsoever upon which has been produced, reproduced, engraved or made
any such words, figures, letters, marks, lines or devices; or
(ii) a
ny equipment, including any tool, instrument or machinery, capable of being utilized for the
purpose of the commission of any of the offences contemplated in paragraphs (a), (b)
or (d);
(f)
willfully defaces, soils or damages any note or coin of the Bank, or without a reasonable
excuse has in his or her possession any note or coin of the Bank so defaced, soiled or
damaged, or without the authority of the Bank writes or places any drawing on a note of the
Bank which is legal tender or attaches thereto anything in the nature of an advertisement;

(g)
removes from the premises where banknotes or coin are manufactured under this Act,
without lawful authority or excuse, any blank or partially printed banknote paper, printing
plate, blank metal sheet, ink, matrix, master punch, die, collar, piercing and cutting tool,
pattern or mould, or any other tool, machine, engine, instrument or thing used or employed
in or in connection with the printing of notes, minting of coins, or any useful part of the several
objects aforesaid, or any blank or defective coin of the size, shape and metal composition of
any coin of which the coinage is authorised by this Act, or any coin or bullion;
(h)
without lawful authority or excuse for such possession is found to be in possession of any of
the aforesaid items referred to in paragraph (g);

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Offences relating to Public officers’ failure to supply information
74.
Any public officer, institution or agency that improperly denies the Bank any financial,
economic or related information or documentation that may be requested by the Bank
under sections 43(2) and 67 in connection with the discharge of the Bank’s functions under
this Act shall be guilty of an offence and liable on conviction to a fine not exceeding
[amount] or to imprisonment for a period not exceeding [term] years or both such fine and
such imprisonment.
Offences relating to non-disclosure of information or furnishing of false information by
banks, financial institutions and other persons
75.
Any bank or financial institution or their respective officers and agents or any other person
to whom the provisions of section 49 and 67 regarding the disclosure of information are
applicable, that -
(a)
supplies false information or fails to furnish before the expiration of any reasonable period
specified in a request so to furnish any information required by the Bank; or
(b)
furnishes false information to the public;
shall be guilty of an offence and liable on conviction to a fine not exceeding [amount] or to
imprisonment for a period not exceeding [term] years or both such fine and such
imprisonment.
Offence relating to unlawful disclosure of information by Bank staffofficers
76.
Any person in the employment of the Bank or an appointee or agent of the Bank who in
contravention of section 69(1) discloses to any person any classified information acquired
in the course of the performance of his or her duties, relating to the affairs of the Bank, a
bank or any financial institution, shall be guilty of an offence and liable on conviction to a
fine not exceeding [amount] or to imprisonment for a period not exceeding (term) years or
to both such fine and such imprisonment.

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General offences
77.
Any person who contravenes or fails to comply with any other provision of this Act shall be
guilty of an offence and liable on conviction to a fine not exceeding [amount] or to
imprisonment for a period not exceeding [term] years or to both such fine and such
imprisonment.
Liquidation/Winding up of Bank
78.
The Bank shall not be liquidated / dissolved / wound up other than pursuant to and in such
a manner as provided for by an Act of Parliament.
Regulations
79.
The Minister may, in consultation with the Bank, make Regulations for the better carrying
out or achievement of the purposes of the provisions of this Act.
Continued existence of the Bank
Repeal of laws and savings/ transitional arrangements
80.
(1)
Notwithstanding the repeal effected by section 81, the [body corporate / juristic person/
legal person] established by section [. . . .] of the [previous central bank legislation] Act
under the name “Central Bank of [country] / Reserve Bank of [country] / Bank of [country]”,
shall continue to exist and shall conduct the business of a central bank in accordance with
the provisions of the Constitution and of this Act .
Repeal of laws and savings/transitional arrangements and continued existence of the Bank
801.
(1)
Subject to the provisions of subsection (2), the laws specified in Fifth Schedule [eventual
schedule no.] are hereby repealed to the extent set out in that Schedule.

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81.
(2)
The [body corporate / juristic person/ legal person] established by section [. . . .] of the
[previous central bank legislation] Act under the name “Central Bank of [country][country] /
Reserve Bank of [country][country] / Bank of [country][country]”, shall continue to exist and
shall conduct the business of a central bank in accordance with the provisions of the
Constitution and of this Act .

(22)
81.
The Governor and each Deputy Governor and any other director of the Bank holding office
at the commencement of this Act shall continue to hold office as such until the expiration of
the period of office for which he or she has been appointed under the . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . Act, [current central bank Act, and which stands to be repealed when this new
central bank Act is adopted], and any rules made by the Board under section . . . . . . . . . . of
the last-mentioned Act shall be deemed to have been made under section 19 of this Act.
Short title and commencement
8182.
This Act is called the
and comes into operation on a date fixed by
i n
t h e
Government Gazette.
FIRST SCHEDULE IN TERMS OF SECTIONS 11, 14 and 25
BOARD OF DIRECTORS, MONETARY POLICY COMMITTEE
OATH/AFFIRMATION ON APPOINTMENT

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Oath/affirmation by the Governor or Deputy Governor, member of Board of Directors
member, MPC members
(full name)
declare that I will, in my capacity as Governor or Deputy Governor, member of Board of
Directorsmember, MPC members of the Bank of [country][country], fulfillfulfil my duties and
exercise my functions bona fide and with reasonable care and skill, without fear, favour or
prejudice, and as the circumstances may dictate, in the best interest of achieving and
maintaining the objectives of the Bank, in accordance with the law and customs of the
[Country][country]”
(Signature)
Sworn at ............................................ this ..................................... day of
Before me,
Commissioner
for Oaths
SECOND SCHEDULE IN TERMS OF SECTION 68
OATH OF SECRECY
I, ............................................................................., having been appointed
........................................................... in the “Central Bank of [country][country]/
Reserve Bank of [country][country]/ Bank of [country][country]”, do swear/affirm that I will
[well/faithfully] and diligently discharge my duties and perform the functions of my office and
that I will not directly or indirectly reveal or transmit any such information or matter as shall
be brought under my consideration, or shall be made known to me, by reason of my office
except as may be required in the discharge of my duties or with the authority of the Board or
the Governor.

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(Signature)
Sworn at ............................................ this ..................................... day of
Before me,
Commissioner for Oaths
THIRD SCHEDULE IN TERMS OF SECTION 25
MONETARY POLICY COMMITTEE CODE OF CONDUCT
1. Fundamental principles and core values
Option 1
Monetary Policy Committee (MPC) members shall act with loyalty to the Bank, be honest, objective,
and impartial and subscribe to the highest standards of professional ethics, diligence, good
faith and integrity. They shall avoid any action, or inaction, which could in any way impair the
Bank's capacity to carry out its duties, or compromise its standing in the community and its
reputation for integrity, fairness, honesty and independence.
2. Conflict of Interest
(1)
In the performance of their duties, MPC members shall avoid any situation that may give
rise to a conflict of interest. No discrepancies may exist between a member's official
responsibilities and any kind of personal or external interests which could jeopardise his or
her impartiality and integrity in performing his or her responsibilities. Acceptance of gifts
and favours that have the appearance of influencing their performance should be avoided.
(2)
Where MPC members who are not full time members of staffemployees of the Bank may
undertake remunerated activities outside the Bank, such activities shall be subject to such
conditions and terms as the Directors’ Affairs Committee or the person assigned by it may
from time to time determine: Provided that such remunerated activities shall in the opinion
of the said Committee not threaten the objectives and purposes of the MPC or have a

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negative impact on the members’ obligations with regard to their duties. MPC members
shall not become a shareholder, director, manager, officer in any banking or other financial
institutions.
3.
Declaration of interests
(1)
To assist in the fulfillment of obligations in relation to conflicts of interests, MPC members
shall upon appointment make a full written disclosure of the nature of their direct or indirect
interests, which may give rise to conflict of interest.
(2)
The matters to be covered by the member‘s statement shall include but not be limited to the
disclosure of:
(A)
any financial or business interest of the member and that of his or her immediate family
members;
(B)
investments in companies, partnerships or joint ventures; and/or
(3)
An update of such a statement on an annual basis shall be provided to the Secretary of the
Bank or other custodian of Board records.
4.
Immunity from personal liability
The MPC members shall not be personally liable to any civil or criminal proceedings, arrest,
imprisonment or damages for anything done in the discharge of their duties in terms of this
Act unless it is established that it was done in bad faith.
5.
Compliance
(1)
Compliance with this Code of Conduct will be monitored by the Directors’ Affairs
Committee. If MPC members (or members of the public) become aware or suspects that a
member(s) of the MPC has, or may have, contravened this Code, this information should
be reported immediately to the Directors’ Affairs Committee, preferably in writing and in a
manner. The Directors’ Affairs Committee shall investigate the alleged breach
of its own violation or upon request.
(2)
Deviation from the standards of this Code shall be dealt with as misconduct on the part of
the member concerned and such a member will be disciplined in accordance with the
provisions of the Act.
(3)
For the duration of any investigation into any allegation of a contravention of this Code, the

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Directors’ Affairs Committee reserves the right to suspend the member concerned from
carrying out duties for the MPC and the Bank.
(4)
Any investigation into a suspected or possible contravention of this Code shall be kept
.
6.
Independence
(1)
MPC members shall be independent from any political influence in the performance of
their duties under this Act.
(2)
The MPC members shall not act as delegates or representatives of any interest groups or
industry in the discharge of their duties.
7.
ity
In accordance with Section 74(1) of this Act, members of the MPC are required to maintain
strict ity of the information discussed at MPC meetings and not to divulge any
information obtained by members in the performance of their duties.
Provided that such ity shall be lifted one year after they have ceased to be
members of the MPC. Members shall also avoid any situation where they might be
perceived as having acted with the benefit of knowledge not available to the general
market place, for their own interests.
FOURTH SCHEDULE IN TERMS OF SECTION 13
DECLARATION OF ASSETS, BUSINESSES AND FINANCIAL INTERESTS
I, ..............................................., being appointed Governor/Deputy Governor of [Bank] make
[oath/solemnly affirm/declare] that–
1.
I am unmarried/married under the system of .......... (matrimonial regime)
2.
My assets and those of my spouse and minor children in [country][country] and outside
[country][country] are as follows –
(A)
immovable property –
(I)
(Ii)
(B
(C)
(d)

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(e)
(f)
(g)
(h)
3.
My liabilities and those of my spouse, minor children and grand children are as follows
4.

Signature
[
Sworn/solemnly affirmed/declared] by the abovenamed before me at ................ This

Signature

FIFTH SCHEDULE IN TERMS OF SECTION 13
REPEAL OF LAWS
The following laws are repealed:
(1).
Previous statute of the Central Bank [citation]
(2)
(3)
(4)

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