Central Bank of Brunant

The Central Bank in Koningstad.

Central Bank offices in Caroline Park, Grijzestad.

100 Th. note of 1959.

Chart showing the Th/USD exhange rates (not the high inflation during the German occupation).

The Brunanter Central Bank (Dutch: Brunants Centralbank) is the national bank of Brunant, having that distinction since 1862. It is a member of the European System of Central Banks. The current President is Hans Verkamp, having occupied the post since 2016.

History

Koningstad Bank

The history of the central bank begins in 1808 when the Koningstad Bank was founded in Koningstad by various businessmen and bankers. The bank had a history of issuing banknotes since around 1830 and was considered one of the nations top banks. The government commissioned it to issue banknotes in the name of Brunant in 1841-43 but serious mismanagement led to it losing that distinction. By 1860 the bank was in financial difficulty and in 1862 the government bought 89% of all stock.

Central Bank

In 1863 the bank was reorganized as the Central Bank of Brunant. The government bought up all remaining stock (11%) and it became a public enterprise under the state. In 1868 the bank began to issue Thaler banknotes (in the amounts of 5, 10, 20, 50, 100 and 500 Th). In 1999 the last thaler notes were printed before the Euro was adopted on 1 January 2002.

Transition to Euro

The transition was not particularly easy as the public was not totally convinced by the Euro. Furthermore the 2.0917 Th. per euro/0.478 euro per thaler (fixed) rate set on in December 1998 was being undermined as many exchange bureaus were offering Euros for as little as 1.7 Th. Others took advantage of an unaware public (the government did not do an effective campaign on educating the public on the Euro) and charged 2,50 and even 3 Th per Euro. Businesses took advantage by raising prices (5 Th. items could be charged at €4, but to many it seemed cheaper, as 4 is less than 5).

The government soon began a massive campaign to educate people about the Euro and "Eurofraud". Price-raising was monitored by the government and they cracked down on illegal currency exchangers. The government allowed the Thaler to be used until 31 December 2002, after which it was allowed to be exchanged at Central Bank offices indefinately.

Duties

Duties of the bank include the issuing of euro banknotes, the printing of euro banknotes and the placing in circulation of euro coins, the management of foreign currency reserves, the collection, circulation and analysis of economic and financial information, the stability of the Brunanter financial sector, the role of financial ambassador to international economic institutions, services for the state, the financial sector and the general public.

The Central Bank has also been in charge of BCB Printing, the issuer of banknotes.

Bank presidents

1. Alexander von Krupski (1862-1865)
2. Philip Harman (1865-1877)
3. Leuvis Janssen (1877-1890)
4. Balthasar Bockner (1890-1896)
5. Alfred Harding (1896-1904)
6. Maurits Sneijder (1904-1919)
7. Gerald Pennington (1919-1928)
8. Ambroos van der Loes (1928-1935)
9. Caroline Neyt (1935-1941, 1945-1951)
10. Adrian Hillary (1951-1968)
11. Francis Andrews (1968-1977)
12. Diane Simmons (1977-1980)
13. Herman Gottstein (1980-1984)
14. Lise Natze (1984-1997)
15. Felipe Lenis (1997-2004)
16. Pier Donnersmark (2004-2016)
17. Hans Verkamp (2016-present)