The State Central Bank of Greifenberg was established by Grand Ducal Decree on 1 October 2006. Since that time the State Central Bank has served as the central bank of the Grand Duchy of Greifenberg. The Bank’s most important objective is to promote the efficient functioning of the financial system in the Grand Duchy of Greifenberg. The Bank has been instrumental in the development of the Greifenberg financial system and continues to foster economic growth and development through sound and effective monetary management.
The State Central Bank undertakes many functions in its day-to-day operations. Its main responsibilities include: issue and redemption of currency; maintenance of national monetary and financial stability; acts as banker to the government, and the protection of the external value of the Greifenberg Krone (GKR).
Monetary Policy
The ultimate objective of the State Central Bank's monetary policy is to safeguard the external value of the Greifenberg Krone. To achieve this goal, the Bank's policy is directed toward maintaining a fixed exchange rate of the Greifenberg Krone vis-à-vis the US Dollar. As of 1 October 2007, the parity between the two currencies was set as 1 GKR = US$ 0.75. The peg to the US Dollar results from the fact that most international transactions of the Grand Duchy of Greifenberg are denominated in US Dollars. Such a policy provides a positive environment for trade and investment by eliminating uncertainties regarding the stability of the exchange rate. The Greifenberg Krone is a “nonconvertible currency,” meaning that it is used primarily for domestic transactions and is not openly traded on a foreign exchange market.
The dominant instrument used in the implementation of the State Central Bank's monetary policy is the predominating monetary cash reserve arrangement. Due to the high dependency on imports of the Grand Duchy of Greifenberg, an increase in credit extension would of necessity translate through higher spending in an outflow of international reserves. Therefore, it is the primary policy of the State Central Bank to act as a brake on these inclinations in order to positively influence Greifenberg’s financial stability.
Currency
The State Central Bank is the only institution entitled by law to print, issue and destroy banknotes and coin in the Grand Duchy of Greifenberg. Private contractors mint all coins and print all banknotes on behalf of the Bank.
Banknotes and coins issued by the Grand Duchy of Greifenberg are available for sale. Please see our sales page located here.
Other Functions:
The State Central Bank is also responsible for managing Greifenberg’s foreign exchange and gold reserves, as well as setting the official interest rate which is used to manage both inflation and the nation’s exchange rate.
