The Eurosystem and the ECB
Within the euro area, it is the duty of the Eurosystem:
- to determine and exercise monetary policy
- to perform currency market transactions and to hold and manage the official foreign reserves of the euro countries
- to issue banknotes
- to promote the smooth operation of the payment system
The President of DNB sits on the Governing Council of the European Central Bank (ECB) and as such helps decide on the euro area monetary policy. The Governing Council consists of the governors of all euro area national central banks and the Executive Board of the ECB. Meeting twice a month, the Governing Council decides in full independence on the best monetary policy for all euro countries together. The decisions are unconnected to any individual national or political interests.
The mission of the Eurosystem
Apart from price stability, the Eurosystem also works to achieve financial stability and financial integration in Europe. It does so embracing trust, transparency, credibility, accountability and co-operation as high values. This commitment includes effective communication with the European public and media.
European System of Central Banks (ESCB)
The European System of Central Banks (ESCB) comprises the European Central Bank (ECB) and the central banks of all 27 Member States of the European Union (EU). Thus the euro countries participate in this system together with the Member States that have their own national currencies.
Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden and the United Kingdom have not adopted the euro to date. Each of these EU countries has its own national currency and pursues its own monetary policy. Hence their national central banks are part of the ESCB, but not of the Eurosystem.