Bank of New Westphalia
|Bank of New Westphalia|
Bank von Neue Westfalen
Banque du Nouvelle Westphalie
|Headquarters||City of Kandieden, Draega, New Westphalia|
|Established||13 March 2014|
|Central bank of||Republic of New Westphalia|
|Currency||New Westphalian Pound|
|Established by the Currency Act 2014|
The Bank of New Westphalia (DE: Bank von Neue Westfalen, FR: Banque du Nouvelle Westphalie, ES: Banco de Nueva Westfalia, GD: Banca Na h-Ueastphàlainn Nuadh) is the central bank of the Republic of New Westphalia and is responsible for setting interest rates, managing state's money supply and managing, and also minting, the New Westphalian Currency - the New Westphalian Pound. The Bank was officially founded on the Thirteenth of March MMXIV by the Currency Act, which created provision for a national bank that would replace the previous national banks of the Republic's constituent countries.
The Bank was unofficially founded on the First of August MMXIII following the Merger of Nations, which made provisions for a single currency maintained by a single government. There was no specific article within the Merger of Nations stating that a Central Bank should be founded, however, the Provisional Government believed it to be contrary to Article VIII of the Merger of Nations not to set up such a Bank.
"That all the citizens of New Westphalia shall, from and after the Union, have full freedom and intercourse of trade and navigation, to and from any port or place within the Republic of New Westphalia..."
Whilst the ideas for the Bank, and indeed a New Westphalian Currency, were laid down as early as the Merger of Nations, the formal discussions that would lay the foundations for a formal Act of Assembly were not fully opened up until January MMXIV. The ideas for a New Westphalian currency, pegged to the GBP at a rate of 1:1 and using pre-decimalised denominations, as discussed earlier, were upheld and included in the discussions.
In March of MMXIV, the Chancellor of the Assembly presented a Bill to the Assembly under the name "Bill on the Establishment of a New Westphalian Currency" (The Currency Act). This bill contained the provisions by which a New Westphalian Currency would be created, however, perhaps more importantly, it also laid down clear foundations for the establishment of a new Central Bank within New Westphalia.
Bill was passed on 13 March MMXIV as "Act on the Establishment of a New Westphalian Currency". It went through the Assembly unanimously.
As per the Currency Act, the Bank is run by a board of trustees (the Board of the Bank of New Westphalia) which is chaired by the Chancellor of State for Finance. In matters such as setting interest rates, minting more money and managing the state's money supply in general, the Board and the Chancellor of State are expected to report to the Assembly and the Cabinet.
The Board are also responsible for advising the Chancellor of State for Finance when drafting the National Budget.
Whilst the Bank of New Westphalia is the central bank of the Republic, it does yield to the Bank of England in certain matters - namely currency values and exchange rates as well as interest rates. This is to allow for the smooth pegging of the NWP to GBP at a rate of 1:1.