Central Bank of Swaziland Order, 1974
Kings Order in Council 6 of 1974
- Commenced on 1 April 1974
- [This is the version of this document at 1 December 1998.]
Part I – Preliminary
1. Short titleThis King’s Order-in-Council may be cited as the Central Bank of Swaziland Order, 1974.
2. InterpretationIn this Order, unless the context otherwise requires—“Bank” means the Central Bank of Swaziland established under section 3;“bank”, “financial institution”, and “licensed financial institution” shall have the meanings ascribed thereto under the Financial Institutions (Consolidation) Order, No. 23 of 1975;[Amended K.O-I-C. 23/1975]“board” means the board of the Bank established under section 10;“chairman” means the chairman of the board;“common monetary area” means the area covered by the Multilateral Monetary Agreement between the Governments of the Kingdom of Lesotho, the Republic of Namibia, the Republic of South Africa and Swaziland, as amended from time to time;[Amended A.1/2004]“deputy governor” means the deputy governor of the Bank;“director” includes the governor and deputy governor;“governor” means the governor of the Bank;“Minister” means the Minister responsible for public finance;[Amended A.14/1982]“statutory organisation” means a quasi-Government organisation established and administered by a law enacted specifically for this purpose.[Added A.14/1982]
Part II – Constitution
3. Establishment of Bank
4. Principal objects of BankThe objects of the Bank shall be to—
5. Head office, branches, agents and correspondentsThe Bank shall have its head office in Mbabane, or such other place as Government may direct, and may establish branches within Swaziland, and appoint agents and correspondents within Swaziland and abroad.
Part III – Capital, profits and reserves
7. ProfitsThe net profits of the Bank for any financial year shall be determined by the Bank after meeting all current expenditures for such year and after making provision for—
8. General reserve
Part IV – Board, management and staff
9. Powers of board
10. Membership of the board
11. Governor and deputy governor
12. Other directors
13. IneligibilityNo person shall serve as director who is at the time of his appointment or later becomes—
14. DisqualificationNo person shall be appointed or remain a director who—
15. ResignationThe governor may resign his office on giving not less than one month’s notice in writing to the King and the Prime Minister, and the other directors may resign their respective offices on giving not less than one month’s notice in writing to the Minister.
16. VacancyIf any director dies or resigns or otherwise vacates his office before the expiry of the term for which he has been appointed, another person shall be appointed at the earliest opportunity to fill the vacancy.
17. Meetings of the board
18. Appointment of officers, employees, agents and correspondents
19. Conflicts of interest
20bis. Indemnity from personal liabilityMembers of the board, the governor, the deputy governor and any officer or employee of the Bank shall not be held liable for damages for the commission of any act under this Order, the Financial Institutions (Consolidation) Order, or any law for which the Bank is acting as agent for the Government, if such action or inaction was done in good faith and within the scope of duty and without gross negligence.[Added A.1/2004]
Part V – Monetary unit, notes and coins
21. Monetary unit
22. Sole right to issue notes and coins
23. Legal tenderOnly notes and coins which are issued by the Central Bank and which may be exchanged by the Central Bank at full value under section 26 shall be legal tender in Swaziland in the case of—
24. Manufacture and characteristics of notes and coins
25. Power to recallThe Bank may, for the purpose of withdrawing from circulation, call in any notes or coins which it has issued, on payment of the face value thereof in accordance with section 26, and any such notes and coins shall, notwithstanding section 23, cease to be legal tender:Provided that any holder of such notes and coins shall be entitled within a period of not less than five years, or such period as may be prescribed by the Bank to claim payment from the Bank of the face value thereof.[Replaced A.1/2004]
26. Exchange of notes and coins
27. Penalty for mutilation of notesAny person shall be guilty of an offence and liable on conviction to a fine of E 10 000 or imprisonment for six months or both if he, without the permission of the Bank, wilfully—
28. Recovery of lost or stolen notes and coinsNo person shall be entitled to recover from the Bank the value of any lost or stolen notes or coins, except as may be provided under the terms of a waiver expressly executed in respect of the assumption by the Bank of risks incident to shipments of notes and coins:Provided that nothing in this section shall affect the liability of the Bank for any loss suffered by any person in consequence of the negligence or misconduct, in the course of his official duties, of any director, officer, employee or agent of the Bank.
Part VI – External reserve, foreign exchange operations, convertibility into Rand and revaluation reserve account
30. External reserveThe Bank shall maintain, on such terms and conditions as the board, with the approval of the Minister, may from time to time prescribe, an external reserve which shall consist of—
31. Adequacy of external reserve
32. Operations in gold and foreign exchange
32bis. Issuance of notes and coins
33. Exchange of notes and coins for RandAs from a date to be appointed by the Minister by notice in the Gazette, the Bank shall claim compensation for any foreign currency circulating in the country on a formula to be agreed to by the Bank and on demand exchange notes and coins against payment of Rand at its head office or at such other places and in such manner as shall from time to time be prescribed by the board.[Replaced A.1/2004]
34. LimitationsThe Bank shall, in connection with the operations enumerated in sections 32 and 33, deal only with Government, its statutory corporations and agencies, licensed financial institutions, foreign Governments and their agencies, foreign central banks and monetary authorities, banks and other financial institutions outside Swaziland, and international financial institutions:Provided that, with the approval of the Minister, the Bank may deal with any other person on such terms and conditions as the board may prescribe.
35. Revaluation reserve account
Part VII – Relations with banks and other financial institutions
36. Opening accounts for financial institutionsThe Bank may open accounts for, and accept deposits from, licensed financial institutions, under such terms and conditions as the board may from time to time prescribe.
37. Operations with account holders
38. Determination of rates for discounts and advancesThe Bank shall determine and publicly announce from time to time its rates for discounts, rediscounts and advances, and may determine differential rates and ceilings for various classes of transactions or maturities.
39. Registrar[Repealed K.O-I-C. 23/1975]
40. Required reserves of banks and other financial institutions
41. Regulation of interest and credit
41bis. Special fundsThe Bank may enter into an agreement or make such other arrangements with the Minister of Finance for the purpose of administering or managing any special fund.[Added A.8/1986; Replaced A.1/2004]
42. Clearing facilitiesThe Bank may, at an appropriate time and in agreement with banks—
Part VIII – Relations with and for Government
43. Bank to be adviser to Government
43bis. Monetary Policy Consultative Committee
44. Accounts for Government and statutory organisationsThe Bank may open accounts for and accept deposits from Government and statutory organisations on such terms and conditions as may be agreed between the Bank and the Minister:Provided that Government and statutory organisations may maintain balances with and generally use the services of any bank or other financial institution on such terms and conditions as may be agreed between the Minister, the Bank and such bank or other financial institution, as the case may be.[Amended A.14/1982]
45. Advances to Government and statutory organisations
46. Acquisition of securities issued or guaranteed by GovernmentThe Bank may on such terms and conditions as the board may from time to time determine, buy, sell or deal in notes, bills, stocks, shares, securities or other evidences of indebtedness issued or guaranteed by the Government or any statutory organisation which are publicly offered for sale or form part of an issue which is being made to the public at the time of acquisition by the Bank and which mature in not more than twenty years.[Amended A.14/1982; A.1/2004]
47. Management of public debtThe Bank shall, as agent for Government, undertake the issue, placement and service of any Government securities, including treasury bills.
47bis. Credit to Government and statutory organisations
48. Agent for the administration of exchange control
49. Depository and fiscal agency for international financial institutionsThe Bank shall, upon designation by the Minister, serve as the depository of, and the fiscal agency through which, dealings shall be conducted with any international financial institution of which Swaziland is a member.
Part IX – Accounts and statements
50. Financial yearThe financial year of the Bank shall coincide with the financial year of Government.
51. Accounts and audit
52. Accounts, annual report and monthly return
Part X – General
53. Prohibited activities
54. Policy directives by Prime Minister
54bis. ***[Added A.14/1982; Repealed A.1/2004]
55. Exemption from Financial Institutions OrderThe Bank shall not be subject to any of the provisions applicable to financial institutions under the Financial Institutions (Consolidation) Order, No. 23 of 1975.[Amended K.O-I-C. 23/1975]
56. Exemption from taxesThe Bank shall be exempt from the payment of any taxes, levies and duties, including, without derogating from the generality of the aforegoing, stamp and transfer duty, in respect of its profits, operations, capital, property and documents, as the case may be, or any transaction to which it is a party.
57. RegulationsThe Minister may, in consultation with the Bank, make regulations for the better carrying out of the purposes and provisions of this Order.
History of this document
01 December 1998 this version
01 April 1974