The Bank was given the status of an autonomous institution as per the Central Bank of Cyprus Law 1963, and relevant acts of the constitution. The primary objective of the bank is to maintain price stability in the country. The bank wholeheartedly supports the economic policy of the government.
Section 6 of the Central Bank of Cyprus Law confers following functions upon the bank.
- Preparation and implementation of the Monetary Policy
- Monitoring the Exchange Rate Policy
- Taking care of and managing the foreign exchange reserves
- Supervision of the banking system in the country
- Promoting, regulating, and overseeing the smooth functioning of the payments and settlement system
- Acting as a banker for and on behalf of the government
In recent times, the Central Bank of Cyprus has intensified its efforts to liberalize the financial sector of the country.
With this objective in mind, the central bank has adopted a new monetary policy framework since 1996. The liquid asset ratio, the main instrument of monetary policy, has therefore been discarded. The abolition of the statutory interest rate ceiling on 1 January 2001 has been a cornerstone in the liberalization process of the financial sector. The Central Bank is also acting vigorously to regulate the banking system in the country and ensure its stability.
As a supervisory authority of the banking system in the country, the central bank has issued a series of guidance notes to banks regarding stringent customer identification norms, record keeping and maintenance, detection and reporting of doubtful dealings, the appointment and duties of money laundering compliance officers, and education and training of bank officials.
The Address and Contact details of the bank is as follows:
Central Bank of Cyprus
Address: P.O. Box 5529 1395 Nicosia CYPRUS
Phone No.: ++357-2-37 98 00
Fax: ++357-2-37 81 53