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History of the Bank
The Central Bank of Seychelles
Within a relatively short period of time, the SMA was able to assume most of the principal functions of a Central Bank in a small developing country. By 1982 the SMA had taken over from Barclays Bank International Ltd. now Barclays Bank ( Seychelles ) Ltd., full responsibility for the day to day operations of the main central government accounts. Thus, with some minor adjustments, the SMA Decree 1978 was turned into the Central Bank of Seychelles Act 1982, which was approved by the People’s Assembly on December 29, 1982. On January 1, 1983, the Central Bank of Seychelles (CBS) was officially inaugurated, with the simultaneous dissolution of its precursor, the Seychelles Monetary Authority.
During the twenty odd years of its existence, with growing experience and an increased number of qualified manpower, the Bank has greatly evolved whilst maintaining its critical role in the economy. In 2002, conscious of the need to restore confidence in the institution, the Bank, in consultation with the IMF, commenced work on updating the Central Bank Act and in December 2004, the National Assembly enacted the Central Bank of Seychelles Act 2004 thereby repealing the previous legislation. The Act formally provides the Bank with institutional and operational autonomy. Under the previous legislation, the Governor of the Bank also held the position of Principal Secretary in the Ministry of Finance. This occasionally led to a certain degree of ambiguity in economic policy decision-making as the Bank and government have different agendas. Under the new Act, the Governor of the Bank is no longer allowed to hold the post of Principal Secretary of Finance, giving the Bank more autonomy. Furthermore, a new board of directors of the Bank was appointed, constituting of directors from both the private and public sector. The new Act also explicitly set out the objectives of the Bank, which were revised in 2009, as part of the IMF-supported economic reform programme so as to be in conformity with current developments.
The primary objective of the Bank is now to maintain domestic price stability, following further amendments to the Act in 2011. Additionally, the post of Deputy Governor was replaced with the positions of First Deputy Governor and Second Deputy Governor.