Central Bank and its functions: objectives, operating principle and structure of the institution

Today different sources are defined differently by the Central Bank,but no one doubts that in the economy of each country without exception, this institution performs a set of very diverse functions that are key to the existence of commodity-money relations. Quite often the Central Bank and its functions are considered an abstract phenomenon, because the majority, it would seem, does not face this state organization once in a lifetime. However, in fact, everything is exactly the opposite! The simplest example is money, which we use almost every day: they are one of the results of the Central Bank's activity.

The central bank of Russia belongs to the state andregulates the activities of all other banking institutions in the country. Also, the Bank of Russia controls the work of other financial organizations not only in terms of the quality of services provided, but also in the sphere of their compliance with the current regulatory and legal framework. Commercial banks in their work take into account the wishes of the Central Bank of Russia, and its functions in issuing relevant recommendations can only bear the economic nature of the impact. Only in rare cases, which pose a threat to the economic stability of the country, the Central Bank has the right to apply administrative measures.

The Constitution of the Russian Federation definesthe term "Central Bank", and its functions are specified in the provisions of this document. The Law on the Central Bank and other regulations provides a more detailed description of the Central Bank's capabilities depending on economic situations, opportunities, and the country's potential.

The Central Bank of the Russian Federation and its functions form a singlea complex of centralized financial management system in the country. The central bank consists not only of the central apparatus, but also of territorial units, as well as computing and settlement centers, educational institutions, security services and pooling of collection.

In order to be able to work stably anyinstitution, incl. and the Central Bank, and its functions were carried out stably, benefiting the economy of the country, determine the organizational structure of the enterprise or state structure. The highest management body of the Central Bank is the Board of Directors. It is an advisory body that produces general management and management of the Central Bank.

The Board of Directors, based on recommendationsThe Government of Russia, provides and guarantees the implementation of the monetary policy of the state in a uniform format throughout the country. In addition, the supreme management body annually submits to the State Duma a report on the activities of the Central Bank and estimates the costs for the next year. The Board of Directors is also authorized to determine the structure of the Central Bank.

The Central Bank of Russia is the only structurein the country to which the right to issue money was granted. It is the Central Bank that organizes the entry and withdrawal of money from circulation throughout Russia. Decisions on the issuance, denominations and samples of money are taken exclusively by the Board of Directors of the Central Bank.

In addition, the Bank of Russia officially representsinterests of our country in the relationship with the central banks of other countries. It is also the Central Bank that participates on behalf of Russia in cooperation with various international banks and other economic structures.

In conclusion, we note once again that the key figure in the country's economy is the Central Bank, and its functions are a very important component in ensuring the stability of commodity-money relations.

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