What is the Central Bank of Swaziland (CBS)? Central Bank of Swaziland (CBS) Review, Features

The Central Bank of Swaziland (CBS) was established in 1974 and is headquartered in Mbabane. The currency is the Lilangeni.

Vision

Have stable prices and a self-regulating financial system to promote economic development.

Mission of the Central Bank of Swaziland (CBS)

• Formulate and implement sound monetary policy to achieve financial stability.
• Regulate and supervise the banking sector to achieve a sound and efficient financial system.
• Issue and exchange currency (notes and coins), which is legal tender in Swaziland.
• Holding and managing the country's foreign exchange reserves.
• Acts as banker, advisor and agent to the Government of Swaziland on monetary and financial matters.
• Promote the development and operation of an efficient national payments system.
• Act as the lender of last resort to financial institutions and promote the development of domestic financial markets.
• Conduct research on monetary, financial and economic issues to support the formulation of monetary policy.
• Strengthen stakeholder relationships.

FAQ

Q: How does the central bank regulate the country’s financial sector?

A: The Central Bank is mandated by the CBE Order as the regulator of the Bank of Swaziland. Section 4 of the CBE Order charges the Central Bank with the responsibility of supervising banks and other financial institutions to promote a sound financial structure. In its supervisory process, the CBE issues guidelines, circulars and legal notices as supervisory tools, all of which flow from the provisions of the Financial Institutions Act 2005.

Q: What does a Banking Ombudsman do?

A: The Office of the Ombudsman exists to provide a fair, expeditious and efficient dispute resolution process, free of charge, to individual and small business banking customers. It provides an informal, easily accessible alternative to other remedies, such as litigation.

Q: What is the nature of the complaint that the Ombudsman will consider?

A: The Ombudsman may consider disputes raised by or on behalf of a bank customer or prospective customer. A person who is a small business, including a sole proprietor or trader, a body corporate, a partnership or a trust, with a turnover of less than E5 million in the previous financial year, or an executor or beneficiary of a trust or estate to which banking services have been provided.

Q: What is the difference between government bonds and treasury bills?

A: Treasury bills are short-term, with maturities of 3 to 12 months, while government bonds have maturities of more than 1 year. Both pay interest at different specific times. The only real difference between Treasury bills and government bonds is the length of their maturity dates.