“Exchange rate with govt. approval”
The exchange rate regime is currently decided by the National Bank of Serbia (NBS) with government approval, says Dejan Šoškić.
Wednesday, 16.06.2010.
13:23
The exchange rate regime is currently decided by the National Bank of Serbia (NBS) with government approval, says Dejan Soskic. The central bank Council chairman and candidate for next NBS governor said that a new law, if adopted by MPs, would not change that in any significant way. “Exchange rate with govt. approval” Soskic told the Wednesday edition ofBelgrade daily Politika, that he did not think the draft law allowed the ruling parties to control the national currency. The disputed article 23, which says that the exchange rate regime is decided by the NBS Council after being proposed by the Executive Board and with government approval, leaves no opportunity for the ruling majority to influence the exchange rate policy directly by appointing council members, said Soskic. "Even now, the NBS is not able to adopt an exchange rate regime without government approval," Soskic noted, adding that the bill does not allow changes in the exchange rate policy without the approval of the NBS Executive Board, which is made up of the governor and vice governors. "That is why I do not expect problems in practice. Also, article 23 is still in draft form and it could be changed by the time it is adopted. Every state institution that encounters problems caused by the law that regulates its operation can initiate changes in that law to increase efficiency," said Soskic.
“Exchange rate with govt. approval”
Šoškić told the Wednesday edition ofBelgrade daily Politika, that he did not think the draft law allowed the ruling parties to control the national currency.The disputed article 23, which says that the exchange rate regime is decided by the NBS Council after being proposed by the Executive Board and with government approval, leaves no opportunity for the ruling majority to influence the exchange rate policy directly by appointing council members, said Šoškić.
"Even now, the NBS is not able to adopt an exchange rate regime without government approval," Šoškić noted, adding that the bill does not allow changes in the exchange rate policy without the approval of the NBS Executive Board, which is made up of the governor and vice governors.
"That is why I do not expect problems in practice. Also, article 23 is still in draft form and it could be changed by the time it is adopted. Every state institution that encounters problems caused by the law that regulates its operation can initiate changes in that law to increase efficiency," said Šoškić.
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