The European System of Central Banks shall have the right to refuse access to the tools of monetary policy for reasons of safety or in the event of a serious or repeated violation of the counterparty's obligations. When selecting participants specialized operations and apply some additional criteria. The objectives and principles of the organization of the ESCB The main purpose of the European System of Central Banks, in accordance with Article 2 of the Statute of the ESCB and of the ECB is to maintain price stability. In October 1998, the Governing Council of the ECB said the main goal of monetary policy EMU, pointing out that the concept of "price stability" provides the opportunity for growth of the harmonized index of consumer prices up to 2% per year, and at the same time defining its structure in relation to consumer goods and services.
Found that price stability should be maintained in the medium term, with the unacceptable price increases in excess of the value and deflation, ie prolonged decline in the levels reflects the harmonized index of consumer prices. The establishment of price stability in the EMU with the principles that guided the national central banks in most countries to join them in the Union, which ensures continuity in the conduct of monetary policy.
To achieve the main objective of the ESCB addresses the following specific objectives defined in Article 3 of its Constitution: 1. The definition and implementation of the single monetary policy. Governing Council of the ECB defines the single monetary policy that national central banks are adopting a decentralized and harmonious manner. Operational framework of the single monetary policy must meet the following principles: compliance with market principles, equal treatment for all, simplicity, search for the best combination of performance and value, decentralization, continuity, coordination and compliance with the management decisions of the ESCB. Mainly for the conduct of monetary policy used by the procedures and tools that are used by most central banks prior to becoming the European Economic and Monetary Union.
2. Storage and management of official foreign exchange reserves of member countries, as well as for currency transactions. The European System of Central Banks shall store and manage the official foreign reserves of the participating countries EMU. The contribution of each National Central Bank is determined according to its share in the capital of the European Central Bank.
According to the statute ECB, central banks should give him (on credit) foreign exchange reserves totaling the equivalent of 50 billion euros (hereinafter, this sum by the Board of Governors may be increased). The volume of reserves by central banks transferred eleven countries - participants of the EMU on January 1, 1999. the European Central Bank, was 39.46 billion euros. Of these, 85% of the amount - in the currency, the remaining 15% - in gold.
Foreign exchange reserves, which remain at the disposal of the national banks, are used by them to fulfill their obligations in relation to international organizations. Conducting other transactions with these reserves in excess of the limit fixed by the Council of Governors, to be agreed with the ECB. It is considered necessary to provide the agreed currency and monetary policy within the EMU. Foreign exchange reserves can be used by the European Central Bank for foreign exchange intervention, and he is given the right to decide on such interventions. This, however, does not mean that the ECB intends to establish any coursework guidelines in respect of any foreign currency, because such an approach can lead to a contradiction with the priority of price stability.
However, the European System of Central Banks is equipped with technical capacity to intervene in foreign exchange markets to counter excessive or erratic fluctuations of the euro against currencies of major countries outside of the European Economic Community. 3. Ensuring the proper functioning of payment and settlement systems.
To ensure the success of the new currency in the third stage of EMU is important to have an effective base of payments and settlements. In particular, this framework is useful for promoting a common short-term interbank interest rates across the "euro zone".
This implies, in turn, create a system by means of which the main scale cross border transactions could be maintained during the same day. To make payments within Europe from the first day in 1999, uses two pan-European system of bank accounts: TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system) with the domestic clearing system - RTGS (Real Time Gross Settlements) and EVA ( system of the European Banking Association).