Presentation on theme: "Facts Australia's central bank The role of controlling the countries money and banking system The RBA was created in 1959 under the Reserve Bank Act 1959."— Presentation transcript:
Facts Australia's central bank The role of controlling the countries money and banking system The RBA was created in 1959 under the Reserve Bank Act 1959 Its purpose isn't to make a profit like other banks, rather its purpose is to manage the economic systems.
RBA Objectives To maintain the stability of Australia’s currency To maintain unemployment To maintain economic prosperity and welfare of people in Australia In recent years, its highest priority was to sustain low inflation
It is one of most important roles Effects the availability of money in the economy by influencing the interest rate The main achievement is to have low inflation whilst encouraging economic growth
The RBA is responsible for the overall stability of the financial system. The RBA provides guidelines to ensure the stability of individual financial institutions, which are enforced by APRA The RBA seeks long term financial stability by avoiding financial crisis by providing guarantees for the depositors funds
The Reserve bank is the only one issuing note in Australia. All Australian currency is manufactured by Note printing Australia, which is part of the RBA The volume of notes and coins on issue are according to the community’s demand for funds.
The RBA is responsible for the payments system. It is ensuring the efficiency and stability of payment methods (eg. Credit cards, cheques, electronic cash) This function is carried out by the Payments Systems Board within the RBA.
banks hole exchange settlement accounts with RBA. It used for banks to settle debts between themselves, as well as end of each day's trading. For banks to buy and sell government securities
The RBA provides funds that are used for international payments The RBA also oversees the dealers in the foreign exchange markets
The RBA is a banker and financial agency for the Commonwealth Government and the state governments Since 1999 the RBA has been in competition with other financial institutions to provide services to the government The RBA publishes assessments of the economy and the financial markets which have significant effect on policy making