Eesti Pank

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Estonian bank
Eesti Pank
Headquarters Tallinn , Estonia
founding February 24, 1919
president Ardo Hansson
country Estonia
currency

Euro

ISO 4217 EUR
Website

https://www.eestipank.ee/en

predecessor

State Bank of the Estonian Soviet Socialist Republic

List of central banks

The Eesti Pank ( German  Estonian Bank ) is the central bank of the Republic of Estonia.

history

Republic of Estonia from 1918

Eesti Pank was founded by the Provisional Government of the Republic of Estonia on February 24, 1919, exactly one year after Estonian independence was proclaimed. From 1921 Eesti Pank issued Estonia's own currency, the Estonian mark . It was replaced by the Estonian kroon on January 1, 1928 as part of a currency reform . This was initially linked to the Swedish krona (= 0.403226 grams of gold ) at a rate of 1: 1 . In 1933 the Estonian kroon was devalued by 35% and pegged to the British pound worth 1 pound sterling = 18.35 Estonian kroons.

With the occupation of Estonia by the Soviet Union in 1940, Eesti Pank was nationalized. As the state bank of the Estonian Soviet Socialist Republic , it handled financial transactions in Estonia under the control of Moscow . The Soviet ruble was introduced as the sole currency. The exchange rate was set at 1 Estonian kroon = 1.25 rubles, much to the detriment of the Estonian economy at the time.

Estonian independence regained

Shortly before Estonia's separation from the Soviet Union, a decision was made on December 15, 1989 to re-establish Eesti Pank with effect from January 1, 1990. On December 28, 1989, the Bank Law of the Republic of Estonia ( Eesti Vabariigi Pangaseadus ) was adopted. It provides for Eesti Pank's independent emission rights for domestic means of payment. On March 15, 1990, the statutes of Eesti Pank were adopted, which then began their work.

On June 20, 1992, the Estonian currency reform came into force, removing Estonia from the ruble zone. From then on, the only means of payment in the Republic of Estonia was the Estonian kroon (EEK). It was tied to the Deutsche Mark at the rate of 8 EEK = 1 DM . With the fixing of exchange rates within the European Monetary Union , the fixed rate from December 31, 1998 was 1 euro = 15.6466 EEK.

Euro introduction

On May 1st, 2004 Eesti Pank became a member of the European System of Central Banks . From June 27, 2004, Estonia was a member of Exchange Rate Mechanism II .

When Estonia joined the European Union on May 1, 2004, the declared aim of the Estonian government was the early introduction of the euro. On December 15, 2004, the design of the future Estonian euro coins was presented. On January 1, 2011, the euro was introduced as legal tender in Estonia.

tasks

Today, Eesti Pank fulfills all the functions of a modern central bank. This includes the development and structuring of the monetary and currency policy of the Republic of Estonia, the supervision of the banking sector, the guarantee of functioning payment transactions in Estonia as well as measures to stabilize the Estonian financial system. The policy of Eesti Pank is committed to price stability . Its activity is regulated by the Estonian Bank Act ( Eesti Panga Seadus ).

organization

The highest body of Eesti Pank is the Central Bank Council ( Eesti Panga Nõukogu ) with a chairman and eight other members. The bank is managed by the Board of Directors of Eesti Pank, which consists of the President of the Central Bank of Estonia and three Vice-Presidents.

President of the Central Bank of Estonia

Web links

  • Eesti Pank website (Estonian and English)