- Joined
- Apr 29, 2025
- Messages
- 70
- Thread Author
- #1
A
BILL
TO
Establish the Bank of Alexandria and Define its Monetary and Economic Functions
BILL
TO
Establish the Bank of Alexandria and Define its Monetary and Economic Functions
1 - Short Title and Enactment
(1) This Act may be cited as the ‘Central Bank Act’.
(2) This Act may be numbered as P.B.00-XXX (To be assigned by Office of the Speaker).
(3) This Act shall be enacted immediately upon its signage.
(4) This Act is authored by Nim.
(5) This Act is co-sponsored by Member of Parliament Twicest.
2 - Reasons
(1) To establish an independent institution responsible for maintaining economic stability within the Kingdom of Alexandria, adapted to its operational timeframe.
(2) To ensure monetary policy is conducted free from undue short-term political pressures, promoting long-term economic health.
(3) To provide a framework for the transparent creation and management of currency, and the regulation of credit.
(4) To establish an independent body for the accurate compilation and dissemination of key economic statistics.
3 - Establishment and Mandate
(1) There is hereby established the Bank of Alexandria (hereinafter referred to as the "Bank").
(2) The primary mandate of the Bank is to maintain economic stability. This includes, but is not limited to:
(a) Maintaining low and stable inflation.
(b) Fostering sustainable employment and economic growth.
(c) Ensuring the stability of the financial system.
(3) The Bank shall set its own specific, measurable, and publicly announced operational goals to accomplish its mandate. These operational goals, and the rationale behind them, shall be publicly updated at least quarterly. The overarching strategic objectives of the mandate shall be reviewed at least once every six (6) months.
4 - Independence and Accountability
(1) The Bank shall be operationally independent in the performance of its functions and the pursuit of its mandate, unbeholden to government diktats.
(2) The Government, Parliament, or any other public or private body shall not seek to influence the members of the decision-making bodies of the Bank in the performance of their tasks.
(3) The Bank shall be transparent in its operations and decisions. It must publish:
(a) A monthly report detailing its actions, analysis of the current economic conditions, and progress towards its stated operational goals.
(b) Minutes of its monetary policy meetings within seven (7) days of said meeting.
(c) A quarterly comprehensive report to Parliament and the public on its activities, financial accounts (audited as per Section 8(3)), and overall economic performance relative to its mandate.
(4) The Governor of the Bank shall appear before Parliament or its designated committees at least once per quarter, or more frequently if requested by Parliament, to answer questions regarding the Bank’s conduct of policy.
5 - Governance: Board of Directors
(1) The Bank shall be governed by a Board of Directors (hereinafter referred to as the "Board").
(2) The Board shall consist of:
(a) A Governor, who shall serve as Chairperson.
(b) A Deputy Governor.
(c) Three (3) Non-Executive Directors, chosen for their recognized expertise in monetary, financial, banking, or economic matters.
(3) Appointment:
(a) The Governor and Deputy Governor shall be nominated by the Prime Minister and confirmed by a two-thirds (2/3) supermajority of members present and vote in Parliament.
(b) Non-Executive Directors shall be nominated by the Prime Minister, in consultation with the Governor, and confirmed by a simple majority vote in Parliament.
(4) Term of Office:
(a) Board members shall hold their positions for a term of six (6) months. Board members may be eligible for reappointment, subject to parliamentary approval as per original appointment.
(b) A Board member may resign by submitting a written notice to the Speaker of Parliament and the Monarch.
(5) Impeachment and Removal:
(a) A Board member may be impeached by Parliament for gross misconduct, conviction of a serious crime, persistent neglect of duties, or permanent incapacitation rendering them unable to perform their duties.
(b) An impeachment proceeding requires a motion supported by at least one-third (1/3) of sitting Members of Parliament.
(c) Removal following impeachment requires a two-thirds (2/3) supermajority vote of all sitting Members of Parliament.
(6) Vacancies:
(a) In the event of a vacancy on the Board due to resignation, removal, or expiry of term, a replacement shall be nominated and confirmed following the procedures outlined in Section 5(3) within fifteen (15) days.
(7) Disqualification: No Member of Parliament or minister of government may serve on the Board.
6 - Powers and Functions of the Bank
The Bank shall have the following powers and functions:
(1) To formulate and implement monetary policy for the Kingdom of Alexandria, with policy meetings occurring at least monthly.
(2) To be the sole issuer of legal tender currency (notes and digital) for the Kingdom. This includes the power to create and destroy currency as deemed necessary to fulfill its mandate.
(3) To set the Alexandrian Base Rate (ABR), which shall be the primary benchmark interest rate influencing other interest rates in the economy.
(4) To establish and manage standing lending and deposit facilities for eligible financial institutions, influencing interbank lending rates and liquidity.
(5) To issue short-term collateralized loans directly to licensed commercial banks. The terms, conditions, eligible collateral, and interest rates for such loans shall be determined and published by the Bank.
(6) To set minimum reserve requirements that commercial banks must hold in designated accounts at the Bank against their liabilities. The Bank shall also specify the types of liabilities subject to reserve requirements and the methods for their calculation. Any changes to the level or scope of reserve requirements shall be announced at least two (2) weeks prior to implementation unless in an emergency.
(7) To act as banker, fiscal agent, and advisor to the Government, but shall not provide direct overdraft facilities or purchase newly issued government debt directly from the Government, except under narrowly defined emergency provisions for market stability, fully disclosed and time-limited.
(8) To hold and manage the official foreign exchange reserves of the Kingdom.
(9) To promote the safety and soundness of the financial system, including the power to collect information from financial institutions and, where not otherwise mandated to another regulatory body, oversee payment and settlement systems.
7 - Office of Economic Statistics
(1) There shall be established an Office of Economic Statistics (OES) within the Bank, but operating with functional independence regarding its statistical methodologies and publications.
(2) The OES shall be headed by a Chief Statistician, appointed by the Board of the Bank for a fixed, non-renewable term of nine (9) months, and removable only for gross misconduct or incapacity by the Board.
(3) The OES shall be responsible for the collection, compilation, analysis, and impartial dissemination of key economic statistics for the Kingdom, including but not limited to:
(a) Consumer Price Index (CPI) and other measures of inflation (to be published monthly).
(b) Gross Domestic Product (GDP) and its components (to be published quarterly).
(c) Employment, unemployment, and wage data (to be published monthly or quarterly as deemed appropriate by the Chief Statistician for data integrity and relevance).
(d) Balance of payments statistics (to be published quarterly).
(e) Parliament may direct the OES by law or resolution to prepare a special report concerning these statistics, or any combination thereof, outside of the publication schedule set forth above, subject to the OES’s capacity and without unduly disrupting its regular schedule.
(4) The OES shall determine its own methodologies for data collection and calculation, adhering to international best practices, and shall publish its methodologies.
(5) All government departments, ministries, and agencies shall provide the OES with timely access to data necessary for the fulfillment of its duties.
8 - Financial Provisions
(1) The initial capital of the Bank shall be determined by an Act of Parliament.
(2) The net profits of the Bank, after provisions for reserves and operational costs as determined by the Board, shall be transferred to the Government Treasury quarterly, within thirty (30) days of the end of each quarter.
(3) The accounts of the Bank shall be audited quarterly by an independent external auditor appointed by Parliament. The audited accounts and the auditor’s report shall be submitted to Parliament and published within thirty (30) days of the end of each quarter.
9 - Relationship with Fiscal Policy
(1) The Central Bank shall not be involved in the formulation or execution of fiscal policy, which remains the purview of the Government and Parliament.
(2) The Bank shall provide technical advice to the Government on matters related to public debt management and financial markets, but shall not determine fiscal targets or expenditure.
(3) The primary instrument for managing government finances shall be through taxation and expenditure decisions made by Parliament, not through monetary financing by the Central Bank.
10 - Amendments to this Act
(1) Any amendment to this Act shall require a supermajority (two-thirds) vote of all sitting Members of Parliament to pass.
11 - Severability
(1) The portions of this act are severable. If one section is found unconstitutional, it shall not effect the other sections.
Last edited:
