The Central Bank of Cyprus was established in 1963, shortly after Cyprus gained its independence, as an autonomous institution in accordance with the Central Bank of Cyprus Law 1963 and the relevant articles of the Constitution. Today the Bank is governed by the Central Bank of Cyprus Laws 2002-2007, which ensure the Bank’s independence as well as compatibility with the relevant provisions of the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank. The law’s amendment in March 2007 paved the way for the legal integration of the Bank into the Eurosystem in January 2008.
The main functions of the Central Bank include:
- implementing the European Central Bank’s monetary policy decisions;
- holding and managing the official international reserves;
- supervising banks;
- safeguarding the stability of the financial system;
- promoting, regulating and overseeing the smooth operation of payment and settlement systems;
- acting as banker for the government.
