Different today sources define the Central Bank in different ways, but no one doubts that in the economy of each country without exception, this institution performs a complex of a wide variety of functions that are key to the existence of commodity-money relations. Quite often, the Central Bank and its functions are considered a kind of abstract phenomenon, because the majority, it would seem, does not collide with this state organization once in a lifetime. However, in fact, everything is exactly the opposite! The simplest example is the money that we use almost every day: they are one of the results of the Central Bank.
The Central Bank of Russia is owned by the state and regulates the activities of all other banking institutions in the country. The Bank of Russia also exercises control over the work of other financial organizations not only in terms of the quality of services provided, but also in the area of compliance of their work with the current regulatory framework. Commercial banks in their work take into account the wishes given by the Central Bank of Russia, and its functions, when issuing relevant recommendations, can only have an economic impact. Only in rare cases that pose a threat to the country's economic stability does the Central Bank have the right to apply administrative measures.
The Constitution of the Russian Federation defines the term “Central Bank”, and its functions are indicated in the provisions of this document. The Law on the Central Bank and other regulatory legal acts provides a more detailed description of the capabilities of the Central Bank depending on economic situations, opportunities, and potential of the country.
The Central Bank of the Russian Federation and its functions form a single complex of a centralized financial management system in the country. The central bank consists not only of the central office, but also of the territorial divisions, as well as computer and settlement centers, educational institutions, security services and cash collection associations.
In order for any institution to work stably, incl. and the Central Bank, and its functions were carried out stably, benefiting the country's economy, determine the organizational structure of the enterprise or state structure. The highest management body of the Central Bank is the Board of Directors. This is an advisory body that provides general guidance and management of the Central Bank.
The Board of Directors, based on the recommendations of the Government of Russia, ensures and guarantees the implementation of the monetary policy of the state in a single format throughout the country. In addition, the supreme governing body annually submits to the State Duma a report on the activities of the Central Bank and makes an estimate of expenses for the next year. The Board of Directors is also authorized to determine the structure of the Central Bank.
The Central Bank of Russia is the only structure in the country that is granted the right to issue money. It is the Central Bank that organizes the deposit and withdrawal of funds from circulation throughout Russia. Decisions on the issue, denominations and samples of money are taken solely by the Board of Directors of the Central Bank.
In addition, the Bank of Russia officially represents the interests of our country in its relations with central banks of other countries. Also, it is the Central Bank that participates on behalf of Russia in cooperation with various international banks and other structures of an economic nature.
In conclusion, we note once again that the central figure in the country's economy is the Central Bank, and its functions are a very important component in ensuring the stability of commodity-money relations.