Reserve Bank of Vanuatu

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RBV'S STATUTORY RESPONSIBILITIES


The functions, powers and responsibilities of the RBV are specified in the Reserve Bank of Vanuatu Act [CAP 125] of 1980. The specific roles of the RBV as spelled out in Section 3 of the Reserve Bank is to

  • Regulate the issue, supply, availability and international exchange of money;
  • Supervise and regulate banking business and the extension of credit;
  • Advise the Government on banking and monetary matters;
  • Promote monetary stability;
  • Promote a sound financial structure;
  • Foster financial conditions conducive to the orderly and balanced economic development of Vanuatu, and
  • To regulate and supervise domestic and international (offshore) banks.



The Bank endeavours to perform these tasks through, among others, these following activities:

  • The formulation and implementation of monetary policy including open market operations in short-term RBV Notes which aims at economic management in which monetary and credit expansion is kept pace with non-inflationary growth at appropriate interest rate levels, while, managing appropriate level of liquidity flows within the banking system to meet the desired stance of monetary policy;
  • Licensing and prudential supervision of domestic and offshore banking business;
  • Custodian and maintenance of the country's official reserve of external assets;
  • Printing, minting, safe-keeping, issue, and maintenance of currency notes and coins;
  • Operations and maintenance of the clearing and settlement of the interbank payments;
  • Collection, analysis and dissemination of monetary, economic and financial data and information;
  • Banker, fiscal agent, depository and adviser to the Government.
  • Banker to domestic commercial banks and the Vanuatu Commodities Marketing Board;