Being the central bank and a government agency of the Republic of Belarus, the National Bank operates exclusively in the interests of the Republic of Belarus.

In performing its activities, the National Bank shall be guided by the Constitution of the Republic of Belarus, the Banking Code of the Republic of Belarus, laws of the Republic of Belarus, regulatory acts of the President of the Republic of Belarus and shall be independent in such activities.

The National Bank shall be accountable to the President of the Republic of Belarus.

The National Bank's accountability to the President of the Republic of Belarus means that the President of the Republic of Belarus:

• approves the Statute of the National Bank as well as modifications and/or amendments thereto;
• appoints the Chairman and members of the Board of the National Bank with the consent of the Council of the Republic of the National Assembly of the Republic of Belarus and removes them from office, notifying the Council of the Republic of the National Assembly of the Republic of Belarus accordingly;
• designates an audit organization for the purpose of auditing the operation of the National Bank; and
• approves annual reports of the National Bank, having regard to the auditors' report and distribution of profit of the National Bank.

The National Bank is a legal person having its seal with the State Emblem of the Republic of Belarus and an inscription "Национальный банк Республики Беларусь" ("National Bank of the Republic of Belarus"). The National Bank shall be located in the City of Minsk.

The objectives and principles of the operation of the National Bank as well as its rights are set forth in the Constitution of the Republic of Belarus, this Code, and other legislative acts of the Republic of Belarus.

Main Objectives of the National Bank

The main objectives of the National Bank shall be:

• protecting the Belarusian rouble and ensuring its stability, including its purchasing power and the rate of exchange relative to foreign currencies;
• developing and strengthening the banking system of the Republic of Belarus; and
• ensuring efficient, reliable, and secure functioning of the payment system.

Gaining profit shall not be the main objective of the National Bank.

Functions of the National Bank

The National Bank shall:

• develop Republic of Belarus Monetary Policy Guidelines and ensures, in concert with the Government of the Republic of Belarus, the conduct of a single monetary policy of the Republic of Belarus in the manner prescribed by this Code and other legislative acts of the Republic of Belarus;
• issue money;
• regulate money circulation;
• regulate credit relations;
• organize the functioning of the Republic of Belarus payment system;
• act as the lender of last resort with respect to banks and provide refinancing thereto;
• carry out foreign exchange regulation;
• establish and exercise foreign exchange control either directly or through the authorized banks and non–bank financial institutions pursuant to legislation of the Republic of Belarus;
• serve as a central depositary of government and National Bank securities, unless otherwise provided for by the President of the Republic of Belarus;
• issue National Bank securities;
• act as a financial agent of the Government of the Republic of Belarus and local executive and administrative agencies regarding execution of republican and local budgets and advise them on these issues;
• give its consent to banks' and non–bank financial institutions' securities operations in cases stipulated by legislation of the Republic of Belarus;
• carry out state registration of banks and non–bank financial institutions;
• license banking activities;
• govern banks' and non–bank financial institutions' activities regarding their secure and liquid performance and exercise supervision over such activities;
• establish banking operations rules and procedures;
• establish internal control requirements to be complied with by banks and non–bank financial institutions and banking groups and banking holding companies;
• agrees securities issues by banks and non–bank financial institutions in cases provided for by legislation of the Republic of Belarus;
• regulate banks' and non–bank financial institutions' activities regarding the issue and circulation of bills, unless otherwise prescribed by the President of the Republic of Belarus;
• establish requirements with respect to performing forward and futures operations and operations with options and other financial instruments of the derivatives market to be complied with by banks and non–bank financial institutions;
• exercise technical direction of accounting and financial reporting in the banking system and devise and approve accounting and financial reporting methodology for the National Bank, banks, and non–bank financial institutions;
• set procedures for compiling statistical reporting by banks and non–bank financial institutions in form and within time–limits stipulated by legislation of the Republic of Belarus;
• devise national financial reporting standards for the National Bank, banks, and non–bank financial institutions pursuant to international accounting standards and exercise technical direction of accounting and reporting therein;
• prescribe procedures for cash and non–cash settlements in the Republic of Belarus;
• perform transactions required to attain the main objectives of the National Bank;
• provide settlement and/or cash services to the Government of the Republic of Belarus, organizations listed in the Statute of the National Bank, and other organizations in cases stipulated in legislative acts of the Republic of Belarus;
• arrange compilation of the balance of payments of the Republic of Belarus, including international investment position of the Republic of Belarus and takes part in its development;
• build up gold and foreign exchange reserves with the consent of the President of the Republic of Belarus and manage them within its purview;
• form the gold holdings of the State Fund of Precious Metals and Precious Stones of the Republic of Belarus and exercise working management thereof within its purview;
• determine prices for purchasing/selling precious metals and precious stones in carrying out banking operations;
• set procedures for opening precious metals accounts and conditions of keeping them with banks and non–bank financial institutions in the Republic of Belarus as well as conditions of opening by residents of such accounts with banks and non–bank financial institutions outside the country. For purposes of this Code, the term "resident" has the meaning defined by paragraph 7 of Article 1 of the Law of the Republic of Belarus "On Foreign Exchange Regulation and Foreign Exchange Control" dated July 22, 2003 (National Register of Legal Acts of the Republic of Belarus, 2003, No. 85, 2/978);
• set, in concert with the authorized government agencies, procedures for bringing into and taking out of the Republic of Belarus precious metals and precious stones when performing banking operations;
• arrange for collection and transportation of cash, payment instructions, precious metals and precious stones, and other valuables;
• control information resources security and protection at banks and non–bank financial institutions;
• analyze and forecast monetary relations, foreign exchange regulation and foreign exchange control relations, balance of payment of the Republic of Belarus and banking system having regard to the social and economic development of the Republic of Belarus, and publish the relevant statistical data and materials pertaining to analysis and forecast in the National Bank periodical;
• enter into agreements with central/national banks and credit institutions of foreign countries; and
• exercise other functions prescribed by this Code and other legislative acts of the Republic of Belarus.

Republic of Belarus Monetary Policy Guidelines

The National Bank shall, in concert with the Government of the Republic of Belarus, annually submit the country's Monetary Policy Guidelines for the next year to the President of the Republic of Belarus before October 1 of the current year.

The National Bank shall, on a quarterly basis, inform the President of the Republic of Belarus and the Government of the Republic of Belarus about the volume of money issue and implementation of the Republic of Belarus Monetary Policy Guidelines.

The National Bank shall inform, on a quarterly basis, the President of the Republic of Belarus about the amount of gold and foreign exchange reserves established in accordance with the objectives and tasks stipulated in the Republic of Belarus Monetary Policy Guidelines.