Organisation

Tasks of the ECB (1/2)

In contrast to the national central banks (NCBs), the ECB carries out only few operations. Instead, it focuses on formulating the policies and on ensuring that the decisions are implemented consistently by the NCBs.

In particular, the ECB is responsible for

• Defining Eurosystem policies: the Governing Council of the ECB is in charge of monetary policy for the single currency. This includes the definition of price stability, how inflationary risks are analysed, etc. 
• Deciding, coordinating and monitoring the monetary policy operations: the ECB instructs the NCBs on the details of the required operations (value, time, date, etc.) and checks their successful execution.
• Adopting legal acts: within closely defined limits, the decision-making bodies have the power to issue intra-Eurosystem binding legal acts, such as Guidelines and Instructions, to ensure that decentralised operations are carried out consistently by the NCBs. Moreover, within defined limits, they can adopt Regulations and Decisions, which are binding outside the Eurosystem. 
• Authorising the issuance of banknotes: this encompasses the strategic planning and coordination of the production and issuance of euro banknotes. Furthermore, the ECB coordinates the Eurosystem's research and development activities and the security and quality of the euro banknote production. In addition, the ECB hosts the Counterfeit Analysis Centre for the analysis and classification of euro counterfeits, the central database for euro banknote counterfeits, and the International Counterfeit Deterrence Centre, which contributes to global central bank cooperation on counterfeit deterrence under the auspices of the G10 Governors.
• Interventions on the foreign exchange markets: if needed, also jointly with individual NCBs. This involves the buying and/or selling of securities on foreign exchange markets.
• International and European cooperation: in order to present its views at the international and European level, the ECB participates in the meetings of various international and European fora. In December 1998, the ECB became the only central bank in the world to be granted observer status at the International Monetary Fund (IMF) and it now participates in all meetings of the IMF's Executive Board on issues relevant to Economic and Monetary Union. For this reason, the ECB has established a permanent representation in Washington D.C. Moreover, the ECB participates in meetings of the G7, the G20 and the Financial Stability Forum. At the European level, the President of the ECB is regularly invited to attend meetings of the Eurogroup, the monthly informal gatherings of euro area finance ministers. Moreover, the ECB may participate in meetings of the EU Council whenever issues relating to the objectives and tasks of the Eurosystem are discussed.