For over two decades, the Bank of Slovenia has been the country’s central reserve bank and administered the issue and circulation of the country’s currency, the Tolar from 1992 through 2006. The bank is an autonomous entity governed by Slovenian law. Headquartered in the capital, Ljubljana, the bank moved over to the rules and regulations of the European System of Central Banks subject to the European Central Bank in 2007 when Slovenia became a member of the European Union and adopted the Euro as its primary currency.
The Bank of Slovenia is an independent bank not affiliated with the government of the country but is required to present a bi-annual report to the National Assembly of Slovenia and comply with all ESCB regulations. The bank is headed by the Governor who is the single representative and director of all banking operations. The Governor is assisted by a board of Vice-Governors who advise and decide the actions of the bank in compliance with European Central Bank policy. The broad duties of the Governing Board are:
Apart from these broad duties the Governing board assists the Governor in representing the bank to the government, external agencies and the country.
The primary duty of the bank of Slovenia is to maintain a stable fiscal environment in the country. Slovenia’s Gross Domestic Product has seen in increasing trend for the last two decades until 2008, when it showed a marginal decline to $47.763 Billion. The bank maintains stability by managing price in a fair and transparent manner.
Another duty of the bank is the maintenance of the country’s reserves, managing profits and losses from fluctuating exchange rates and hedge against severe losses. The institution also manages the country’s general and special reserves.
As with most central banks, the bank also manages coinage, issuing coins and banknotes. In the past, this task involved decisions about the nature, name and denominations of the Tolar. Today, the bank manages the issuance and circulation of the Euro in accordance with relevant European statutes.
Other important tasks of the Bank of Slovenia are to manage the country’s foreign reserves, maintain domestic and foreign accounts, manage credit and money markets, lend money to other banks, and other functions of a central bank. Importantly, the bank acts as the representative of the country in financial matters involving world bodies such as the United Nations and the World Bank.
Through the work and governance of The Bank of Slovenia, the nation’s banking and payment systems operate smoothly and securely. Since its acceptance into the Eurosystem, the bank works with the European Union, The Slovenian government and other financial bodies to ensure that Slovenia’s economy remains stable, thus ensuring a stable Euro.