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| Central Bank of Alexandria Act Chapter I General Provisions Article 1 The Central Bank of Alexandria (hereafter called the Bank) shall be a government bank and an agency under the Imperial Cabinet. Article 2 The primary objectives of the Bank's operations shall be: 1. To promote financial stability; 2. To guide sound banking operations; 3. To maintain the stability of the internal and external value of the currency; 4. To foster economic development within the scope of the above objectives. Article 3 The Bank shall have its Head Office at the site of the Central Government and may establish branch offices in all regions of the country, as well as in foreign nations. The establishment and abolishment of its branch offices shall be authorized by the resolution of the Board of Directors and reported to the Imperial Cabinet for approval. Article 4 The capital of the Bank shall be appropriated from the National Treasury. It shall be fully owned by the central government and nontransferable. Chapter II Organization Article 5 The Bank shall have a Board of Directors consisting of as many directors as may be nominated by the Imperial Cabinet and appointed by the Emperor on the advice of the Prime Minister. The Governor of the Bank, the Finance and Economics Minister and the Foreign Minister shall be ex officio directors. Except for the ex officio directors, the directors shall be appointed for a term of three months, and may be reappointed upon the expiration of such term. Article 6 The powers and functions of the Board of Directors shall be as follows: 1. To examine policies concerning money, credit and foreign exchange; 2. To examine the adjustment of the Bank's capital; 3. To approve the operation plans of the Bank; 4. To examine the budget and fiscal reports of the Bank; 5. To examine and approve major by-laws and regulations of the Bank; 6. To examine the establishment and abolition of the Bank's branch offices; 7. To approve the appointment and the removal of the Bank's department heads and their deputies, and branch managers; 8. To examine matters proposed by the Governor; 9. To examine the Bank's assets and liabilities; 10. To audit the Bank's accounts; 11. To examine the reserves for the issuance of currency by the Bank; 12. To examine the amount of currency issued by the Bank; 13. To examine and approve the Bank's fiscal reports; 14. To investigate any case involving violation of this Act and the by-laws and regulations of the Bank. The Board of Directors may delegate all or part of the above powers and functions to the Governor of the Bank. The resolution of the Governor shall be reported to the Board of Directors for record and approval. The Board of Directors shall establish rules and regulations of board meetings. Such rules and regulations shall be reported to the Imperial Cabinet for record. Article 7 The Bank shall have a Governor with the rank of special appointment and may have up to two Deputy Governors with the rank of selective appointment, all of who shall be appointed for a term of three years and may be reappointed upon the expiration of such term. Article 8 The Governor shall be the chief executive in directing and supervising the operations of the Bank, shall carry out resolutions of the Board of Directors, and shall represent the Bank on all occasions. The Deputy Governors shall assist the Governor in the execution of the above duties. The Governor shall be the chairman of the Board of Directors. Whenever the Governor is unable to attend, the Deputy Governor designated to act for the Governor shall be the chairman. Article 9 Upon the resolution of the Board of Directors and approval by the Imperial Cabinet, the Head Office of the Bank may establish the following departments to effect its operations: 1. Banking Department. 2. Issue Department. 3. Foreign Exchange Department. 4. Treasury Department. 5. Bank Examination Department. 6. Economic Research Department. 7. Department of Secretariat. 8. Accounting Department. The Head Office of the Bank may establish committees to handle special matters. Chapter III Operations Article 10 Unless otherwise specified by law, the Bank's operations shall be circumscribed to business with the following organizations: 1. Government agencies. 2. Banks and other financial institutions. 3. International and foreign financial institutions. Article 11 The currency of the Empire of the Alexandrians shall be issued by the Bank. The currency issued by the Bank shall be the national currency, and shall be legal tender for all payments within the territory of the Empire of the Alexandrians. The Bank shall establish plants under its management to carry out the printing and minting of the currency. Article 12 The Bank may, whenever necessary, delegate other government banks to issue currency by region on its behalf, to be regarded as national currency. The assets and liabilities pertaining to the issuance of such currency shall be for the account of the Bank. Article 13 The basic monetary unit of the national currency is the Alexandrian Écu (AE), and the subsidiary currencies are the Escudo (e), the Livre (ℓ) and the Louis d'Or (LO). Ten Escudos are equal to one Livre, ten Livres equal to one Louis d’Or and ten Louis d’Or equal to one Alexandrian Écu. The denomination, ingredient, form, and pattern of the notes and coins issued by the Bank shall be proposed by the Bank, for approval by the Imperial Cabinet. The Bank shall make public the specifications of notes and coins prior to the issuance. Article 14 The Bank shall keep currency equal to one hundred percent of the currency it circulates in reserve. Article 15 The Bank may provide the following accommodations to banks: 1. Rediscounts of eligible bills, with maturity not exceeding 90 days for industrial and commercial bills, and 180 days for agricultural bills. 2. Temporary advances not exceeding 10 days. 3. Refinancing of secured loans not exceeding 180 days. The Bank may impose a ceiling, respectively, on rediscounts and other accommodations to banks. Article 16 The Bank, in order to assist economic development, may establish various funds, using savings deposits re-deposited by financial institutions and other special funds to refinance banks for their medium and long term loans. Article 17 The interest rates of the Bank's rediscounts and other accommodations shall be determined by the Bank in the light of the financial and economic conditions, and made public. However, the branches of the Bank may establish their own interest rates on rediscounts and accommodations according to local special financial conditions, with prior approval by the Head Office, and make them public. Article 18 The Bank may, at its discretion and in the light of financial and economic conditions, prescribe an upper limit for the interest rates of bank deposits, and approve the range of interest rates on bank loans as proposed by the bankers' associations. Article 19 The Bank may, in the light of financial conditions, purchase and sell in the open market the bonds issued or guaranteed by the government, financial bonds issued by banks and bills accepted or guaranteed by banks. Article 20 The Bank may, whenever necessary, prescribe and regulate the amount of down-payment and the term of credit extended by banks for the purchase or construction of buildings and the purchase of durable consumer goods. Article 21 The Bank may, whenever it deems that the monetary and credit conditions so warrant, prescribe a maximum limit for the amount of various kinds of credits extended by all, or any category of, financial institutions. Article 22 The Bank shall license and examine all other banks that are to operate within Alexandria, as well as establish general regulations for their operation. Chapter IV Appendix Article 23 The citizens of the Empire shall be given a period of two weeks following the enactment of this act to establish accounts in other banks. The Central Bank, in accordance with Article 10, shall only do business with government agencies, other banks and financial institutions. Article 24 If need be, in order to fulfill the provision of Article 14, the Bank may nationalize private funds, to a maximum of AE 25,000. Article 25 This Act shall become effective once it has received Imperial Assent. |