The Central Bank of Bougainville (CBOB) is the central bank of the Government of Bougainville Island. It was established on 14 May 2012 pursuant to the Decree # 7-140512-1 and LAW ON THE CENTRAL BANK OF BOUGAINVILLE (May 14, 2012) revised by Decree # 7-041113-1A & 1B on November 4, 2013. The CBOB took over as the country’s central monetary authority. The CBOB enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities.

 

The CBOB was initially funded with  270 000 000 ounces of Bougainville Alluvial Gold valued in current markets at 177,118,022,118.65 EUR. The expansion of its basis will be enabled by endeavors such as those that stem forth from the “Royal Mint Act” and other investment programs such as our Certifcate of Deposit program.

 

The CBOB:

 

1. Has supervision over the operations of banks located within the Nation of Bougainville Islands.

 

2. Exercises these regulatory powers as provided in the Law on the Central Bank of Bougainville, as well as other pertinent laws concerning the operations of finance companies and non-bank financial institutions which perform quasi-banking functions.

 

3. Is responsible for the administration of the Bougainville Kina (BVK),  a currency totally backed by gold. The BVK is offered in two forms. The internal BVK consists of paper currency and coins.
The external currency has an electronic form.

 

The primary objective of CBOB's monetary policy is to promote a low and stable inflation conducive to a balanced and sustainable economic growth. The adoption of inflation targeting framework for monetary policy is aimed at achieving this objective.

 

The CBOB extends discounts, loans and advances to banking institutions in order to influence
the volume of credit consistent with objective of price stability. It also grants loans or advances
to banking institutions in precarious financial condition or under serious financial pressures,
subject to certain conditions.

 

When availing of the loan facilities of the CBOB, private banks assign to CBOB their receivables including the collaterals. Upon failure of these banks or their borrowers to pay their loans, the CBOB forecloses these real properties. Banks also pay their loans with properties under a dacion en pago agreement.
As such, the CBOB has acquired assets which it administers, preserves and disposes properly.