THE EUROPEAN CENTRAL BANK

THE EUROPEAN CENTRAL BANK

1. HISTORY

   • Starting 1 Jul 1990:Increased co-operation between central banks
   • Starting 1 Jan 1994:Increased co-ordination of monetary policies
   • Starting 1 Jan 1999:Introduction of the euro

2. ORGANISATION

   • European System of Central Banks
     • Member States whether they have adopted the euro or not
   • Eurosystem
     • The Eurosystem comprises the ECB and the NCBs of those countries that have adopted the euro
   • Euro area
     • The euro area consists of the EU countries that have adopted the euro.

3. TASKS

   • The definition and implementation of monetary policy for the euro area
   • The conduct of foreign exchange operations
   • The holding and management of the official foreign reserves of the euro area countries
   • The promotion of the smooth operation of payment systems.