Central Bank Independence in Transition Economies

11B. Objectives, Formulation of Monetary Policy and Relations with 

other State Institutions 

The main tasks of the Central Bank are protection of the national currency 

stability and development of the banking and payment system (Art. 3). Revenue is not 

enumerated among the Bank's objectives. The Bank of Russia, in co-operation with the 

Government, determines and conducts monetary and credit policy (Art. 4, 16). The 

Chairman co-operates in framing the Government's economic policy and participates 

in its meetings. Accordingly, the Minister of Finance and the Minister of Economy 

participate in the Board of Directors' meetings (Art. 19). The NBR is independent from 

the Government and has a right to appeal to the court for invalidating any Government 

decision that interferes in Bank's activity as defined by the law (Art. 5).The Bank is 

subordinated to the Parliament (Art. 5) and has to present annual report on its activity, 

including annual statement which has to be approved by the Parliament (Art. 25). The 

Bank's draft of guidelines for monetary policy, presented to the Parliament and the 

President, has to approved by the Parliament (Art. 44).