Open AccessThe Role of the Central Bank in Foreign Exchange Inspection in Selected Countries of the European Union – as seen in the Example of Poland, the Czech Republic and Germany
Author(s) -
Ewa Kowalewska
Publication year - 2021
Publication title -
review of european and comparative law
Language(s) - English
Resource type - Journals
eISSN - 2657-5949
pISSN - 2545-384X
DOI - 10.31743/recl.12282
Subject(s) - legislation , czech , currency , position (finance) , european union , balance of payments , business , national bank , international economics , scope (computer science) , central bank , state (computer science) , member state , economic policy , monetary policy , international trade , economics , member states , political science , finance , macroeconomics , law , philosophy , linguistics , algorithm , computer science , programming language
The activity of central banks in EU states is based on similar assumptions. Their aim is usually to maintain a stable level of prices and to support the state’s economic policy. Central banks are responsible for issuing money and for monetary policy. They have been equipped with adequate instruments to this end. The aim of this research is to demonstrate that legislation in Poland, the Czech Republic and Germany vested another important function in the central banks, namely foreign exchange inspection. However, this function is exercised differently in each of them. The central banks of countries referred to above are not only responsible for currency in circulation within the country but also for the balance of payments. Also, by pursuing their own foreign exchange policy they ensure an adequate position of the national currency in relation to foreign ones. The foreign exchange inspection in each of these countries is based on a different tradition and at the same time outlines the special role of the central bank. The analysis herein makes it possible to establish the scope of this inspection, taking into account the dynamics of changes that occur on the legal ground. What is also important here is whether a given country is only a member of the European Union or a member of the EU and of the euro area. The adopted research methodology is based on analysis of legislation in force with a reference to views expressed by legal commentators.