HISTORY OF THE CENTRAL BANK
The organization of the monetary system in São Tomé and Príncipe is confused with the National History. In addition, the Central Bank of São Tomé and Príncipe “BCSTP” emerges from a succession of events of this nature.
Found in the second half of the 15th century, the islands of São Tomé and Príncipe were inhospitable and were not very attractive in economic terms. In the first centuries of colonization, characterized by great social heterogeneity, conflict and power struggles, the economy was reduced to the intensive planting of sugar cane and the interposition of slaves. The means of payment then used were copper and brass shackles, matamingos, cloths, and various currencies and other goods (including the slaves themselves). There followed a period of almost abandonment of economic exploitation of the islands and the almost absence of registration of market movement. Monetary circulation continued to be at a standstill, reflecting increasingly deep socio-economic conflicts. This scenario was not conducive to the existence of issuing banks, let alone
This scenario only started to be reversed, at the end of the 18th century when the Portuguese crown proposed to boost the economy of this colony, with special attention to Fazenda Régia. Thus, at the beginning of the 19th century, Banco do Brasil exercised, without exclusivity, the role of issuing bank for S. Tomé and Príncipe.
This process was only consolidated in the second half of the 19th century with the Banco Nacional Ultramarino (BNU), established in Lisbon by a Letter of Law of 16 May 1864 and whose branch was installed in S. Tomé in 1868, accumulating the functions issuing bank, provincial banker and bank banker.
In June 1975, BNU was succeeded by the National Bank of S. Tomé and Príncipe “BNSTP” through Decree 56/75 of the Provisional Government. In the meantime, BNSTP, was fully instituted on September 3, 1976 at the time of Decree-Law no. 41/76 of its Organic Law, which gave it the functions of central, commercial and development bank. The BNSTP's functions were in line with the centralized economic development system that prevailed in the country.
However, the transition from the centralized economy to the market economy in the late 1980s and early 1990s required the existence of a strong and independent central bank, capable of implementing monetary and exchange rate policies and supervising the activities of commercial banks. . For this reason, it was necessary to disengage the commercial and development aspects that BNSTP harbored.
Indeed, the imperatives of functional restructuring of the national economy dictated the institutionalization of BCSTP, which succeeded BNSTP. This aim was materialized by Decree Law No. 8/92, the Organic Law of BCSTP.
Governing by a board of directors chaired by a governor, BCSTP is the issuing bank, banker of the State and supervisor of national financial institutions and, in this capacity, it is responsible for ensuring the internal and external stability of the national currency - DOBRA.
The financial institutions law (Law No. 9/92) and the Foreign Exchange Law (Foreign Exchange Law 32/99) complement the legal support that allows BCSTP to exercise its powers.
Since its institutionalization, the BCSTP has directed different exchange rate regimes, with emphasis on the current fixed parity regime for the Euro, following the Economic Cooperation Agreement signed between the Portuguese and Santomean Government. The exchange rate with the Euro took effect in January 2010.
Mission:
The Central Bank of São Tomé and Príncipe elected as essential missions: The Stability of the National Currency and the Financial System.
Functions of the Central Bank of S. Tomé and Príncipe:
- Formulate and execute monetary policy as well as execute and manage exchange rate policy, ensuring the internal and external stability of the national currency;
- Promote the stability of the country's financial sector, through the supervision and inspection of the national financial system;
- Issuing and putting into circulation banknotes and coins necessary for the functioning of the economy;
- Collect and compile statistics;
- Produce studies and analyzes on the national economy;
- Monitor the national payment system.
