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;