Central Bank of Kosovo Overview and Key Responsibilities

The Central Bank of Kosovo is the country's central bank, responsible for maintaining monetary stability and financial system integrity. It was established in 2008.

Located in Pristina, the bank's main office is situated in the heart of the city, making it easily accessible to the public. The bank's headquarters is a modern building that reflects its commitment to innovation and progress.

The Central Bank of Kosovo's key responsibilities include setting and implementing monetary policy, regulating and supervising the banking system, and maintaining the stability of the financial system.

The Central Bank of Kosovo's primary objective is to foster and maintain a stable financial system, including a safe, sound and efficient payment system. This is a crucial task, as a stable financial system is essential for a country's economic growth and development.

The Bank's secondary objective is to contribute to achieving and maintaining domestic price stability. This means that the Central Bank aims to keep inflation under control, ensuring that the value of money remains stable over time.

The Central Bank also supports the general economic policies of the Government, acting in accordance with the principle of an open market economy with free competition. This means that the Bank promotes an efficient allocation of resources, which benefits the economy as a whole.

Here are the Central Bank's main functions, as outlined in its strategic plan:

The Central Bank of Kosovo has a clear set of objectives that guide its actions. The primary objective is to foster and maintain a stable financial system, including a safe, sound, and efficient payment system.

The Central Bank's primary objective is to maintain a stable financial system. This involves ensuring that the payment system is safe, sound, and efficient.

In addition to maintaining a stable financial system, the Central Bank also aims to contribute to achieving and maintaining domestic price stability. This is a subordinated objective, meaning it is secondary to the primary objective of maintaining a stable financial system.

To achieve its objectives, the Central Bank must act in accordance with the principle of an open market economy with free competition, favoring an efficient allocation of resources.

Here are the Central Bank's objectives in a concise list:

The Central Bank of the Republic of Kosovo has a clear mandate for managing its international reserves, as outlined in Article 15 of the LAW no. 03/L-209. This includes conducting transactions and managing reserves in accordance with international best practices.

One of the key objectives of the Central Bank is to respect the priorities of security, liquidity, and yield when managing its international reserves. This means that the Central Bank must balance the need to maintain financial stability with the need to earn a return on its investments.

The Central Bank may hold a variety of assets in its portfolio, including gold, banknotes, and credit balances. These assets must be denominated in freely convertible currencies.

Some examples of the types of assets the Central Bank may hold include:

The Central Bank's ability to hold a diverse range of assets allows it to manage its international reserves in a flexible and responsive manner.

The Central Bank of Kosovo's issuance of bonds was a significant milestone in 2012. In December 2011, they signed a regulation for primary and secondary government bonds with the Ministry of Finance.

This led to the first auction of bonds on January 17, 2012, where the Central Bank of Kosovo collected €10 million worth of monetary assets. The CBK continued to raise funds through bond issuances, collecting an additional €64 million in 2012.

By the end of 2012, the total value of bonds issued was €74 million, according to an adviser to the Minister of Finance on January 9, 2012. It's impressive to see how quickly the CBK was able to establish this new funding mechanism.

In 2013, the Central Bank of Kosovo aimed to raise a sum equal to €80 million through bond issuances.

The government of Kosovo has taken a significant step towards financial stability by considering the deposit of 1.75% of GDP as an emergency buffer.

This recommendation comes from a fund that has been studying the financial situation of Kosovo.

The Central Bank of the Republic of Kosovo has adopted a regulation that sets out the conditions for emergency fund provision, which is a welcome development according to IMF staff.

The regulation adds detail and rigour to the emergency fund provision process.

The government's decision to consider this deposit is a response to the country's financial challenges, including high unemployment rates.

In 2007, unemployment was identified as one of the main problems facing Kosovo, and it remains a delicate issue for the country.

The Central Bank of the Republic of Kosovo will be investigated following the arrest of its governor, Hashim Rexhep, on alleged corruption charges.

The Central Bank of Kosovo operates under a regulatory framework that is designed to maintain financial stability and integrity. This framework is overseen by the Parliament of Kosovo.

The Central Bank of Kosovo is subject to the Law on the Central Bank of Kosovo, which defines its role and responsibilities. The Law also establishes the Central Bank's independence and autonomy.

The Central Bank of Kosovo is required to maintain a high level of transparency in its operations and decision-making processes. This includes publishing regular reports and statements on its activities and policies.

The Central Bank of Kosovo has a range of tools at its disposal to regulate the financial sector, including setting interest rates and supervising banks.

The Central Bank of Kosovo plays a crucial role in managing and publishing information related to its activities. It has the authority to collect and publish statistics and other relevant information that concerns all parties involved.

The Central Bank can obtain information from various sources and use it to inform its decisions and policies. This information is then shared with the public through media channels.

The Central Bank collaborates with the government to publish statistics and information, ensuring a unified approach to data dissemination. This collaboration is essential for transparency and accountability.

Here are some key responsibilities of the Central Bank in terms of statistics and information:

The Central Bank of Kosovo has a clear governance structure in place, led by a Governing Board.

The Chairman of the Governing Board is Bashkim Nurboja.

The Board consists of three members, including Nora Latifi - Jashari and Nexhat Kryeziu.

Here is a list of the current members of the Governing Board:

The Central Bank of the Republic of Kosovo is a fully authorized legal organization with the capacity to enter into contracts, institute legal proceedings, and acquire, administer, hold, and dispose of movable and immovable property.

Its capital consists of an authorized budget of €30 million, which is controlled by the state and can be used only for its legal purposes.

The Central Bank of the Republic of Kosovo reports only to the Assembly of the Republic of Kosovo, indicating its independence and autonomy.

It functions independently under the full autonomy of its leading decision-making entities.

The Current Governing Board of the Central Bank of Kosovo is responsible for overseeing the bank's operations.

Bashkim Nurboja serves as the Chairman of the Governing Board, a crucial role in ensuring the bank's stability and growth.

Nora Latifi - Jashari and Nexhat Kryeziu are also part of the Governing Board, contributing their expertise to the decision-making process.

The members of the Governing Board work together to make key decisions that impact the Central Bank of Kosovo's policies and operations.

The Central Bank of Kosovo has had its fair share of governors over the years.

Hashim Rexhepi was the first governor, serving from 2008 to 2010.

Gani Gërguri took over from 2011 to 2013.

Bedri Hamza was the governor from 2013 to 2017.

Fehmi Mehmeti held the position from 2018 to 2023.

Ahmet Ismaili is the current governor, starting in 2023.

Here's a list of the governors in chronological order: