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National Bank of Czechoslovakia



HISTORY OF CZECHOSLOVAK CURRENCY.

The National Bank of Czechoslovakia was a joint-stock company with a capital of 12 million US gold dollars, divided into 120,000 shares of 100 gold dollars each. The bank was headed by a governor appointed by the President of the Republic for five years at the suggestion of the government. The governing body was the Bank Board, which, in addition to the Governor, had nine other members, six elected at the General Meeting of Shareholders and three appointed by the President of the Republic on the proposal of the Government. The members of the Bank Board were representatives of industry, agriculture, trade and finance. The National Bank was an autonomous issuing body because it was granted "the exclusive right to issue banknotes and to maintain money and credit circulation". The National Bank was entrusted with the management of the foreign exchange economy in times of foreign exchange, creating conditions for the introduction of the gold currency and was required to maintain a certain ratio of Czechoslovakia. Koruna to foreign currencies. The main instruments of issuing monetary policy were short-term loans provided to commercial banks and a discount interest rate policy. The law prohibited the provision of any loans to the government.
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