The Central Bank of Turkmenistan (statements of the Mejlis of Turkmenistan, 2011, no. 1, art. 11) (with amendments of Act No. 234 23.05.2015-V) this law determines the legal, institutional and economic framework of the Central Bank of Turkmenistan, its relationship with State authorities, local authorities, credit institutions and is aimed at the development and strengthening of the banking system of Turkmenistan.
 
Chapter 1. General provisions Article 1. The basic concepts used in this law 1. In this Act the following basic concepts are used: 1) debt − debt negotiable instrument or any other equivalent document, which contained liability to the execution of the document holder;
2) refinance lending system by the Central Bank of Turkmenistan of credit institutions registered in Turkmenistan;
3) correspondent banks − banks with which the Central Bank of Turkmenistan established correspondent relationships;
4) financial instrument − financial document on the basis of which occur at the same time a financial asset of one party and a financial liability is another;
5) converting manat-exchange of the national currency of Turkmenistan for foreign currency;
6) agent of the Central Bank of Turkmenistan − an individual or legal entity that represents the interests of the Central Bank of Turkmenistan in the bodies of State authority and administration, local authorities, courts and international organizations;
7) currency of Turkmenistan-banknotes and coin of the Central Bank of Turkmenistan.
2. All other concepts used in this law, the meanings of certain civil and other laws of Turkmenistan, as well as the relevant articles of this law.
 
Article 2. Turkmen law on Central Bank of Turkmenistan 1. Turkmen law on Central Bank of Turkmenistan is based on the Constitution and consists of this law and other normative legal acts, regulating the banking activities in Turkmenistan.
2. If an international treaty to which Turkmenistan stipulates other rules than those contained in this Act, the rules of the international treaty shall apply.
 
Article 3. The Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan is National Bank of Turkmenistan.
2. The Central Bank of Turkmenistan is accountable to the President of Turkmenistan.
3. The Central Bank of Turkmenistan is headed by the Chairman of the Central Bank of Turkmenistan.
The Chairman of the Central Bank of Turkmenistan, the Deputy Chairman of the Central Bank of Turkmenistan are appointed and dismissed by the President of Turkmenistan.
4. The Central Bank of Turkmenistan carries out its costs at the expense of their own income.
5. The Central Bank of Turkmenistan shall exercise the powers of possession, use and disposition of money and other assets of the Central Bank of Turkmenistan in accordance with this law. The recovery and encumber the obligations specified property without the consent of the Central Bank of Turkmenistan is not allowed, unless otherwise stipulated by this law and other normative legal acts of Turkmenistan.
6. The Central Bank of Turkmenistan is a legal entity.
7. The Central Bank of Turkmenistan has a seal with the State emblem of Turkmenistan and the inscription "Türkmenistanyň Merkezi Banka".
8. you may not use the abbreviation "TMB", as well as the words "Merkezi" in the names and symbols of other credit institutions.
9. The Central Bank of Turkmenistan have the right to establish branches, representative offices, enterprises, institutions, organizations, identify agents of the Central Bank of Turkmenistan and correspondent banks in Turkmenistan and abroad, in the manner prescribed by the legislation of Turkmenistan.
10. Central Bank of Turkmenistan is a banker, Advisor and fiscal agent of the Cabinet of Ministers of Turkmenistan.
11. Location of the Central Bank of Turkmenistan (Central Office) is the city of Ashgabat.
 
Article 4. Acts of the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan on issues within its competence otnesënnym this Act, develops and approves regulatory legal acts obligatory for State Executive and administrative bodies, local authorities, credit institutions and their clients, and other natural or legal persons resident in the territory of Turkmenistan.
2. Regulatory acts of the Central Bank of Turkmenistan are subject to state registration in the order established by the legislation of Turkmenistan.
3. The Central Bank of Turkmenistan in order to ensure the functioning of the Central Bank of Turkmenistan and regulate the activities of credit institutions also publishes other acts.  
4. Regulatory acts of the Central Bank of Turkmenistan, where necessary, are sent in full to all registered credit institutions.
5. Regulatory acts of the Central Bank of Turkmenistan shall not have retroactive force.
Part 6 lost effect according to the Turkmenistan law dated 08.11.2014 № 147-v. 7. Normative legal acts of the Central Bank of Turkmenistan shall be published in the manner prescribed by the legislation of Turkmenistan, and posted on the official website of the Central Bank of Turkmenistan.
 
Chapter 2. Objectives, major tasks and functions

Article 5 of the Central Bank of Turkmenistan. Objectives and main tasks of the Central Bank of Turkmenistan 1. The objectives of the Central Bank of Turkmenistan are: 1) the sustainability of AZN;
2) development and strengthening of the banking system of Turkmenistan.
2. Making a profit is not the purpose of the Central Bank of Turkmenistan.
3. the main tasks of the Central Bank of Turkmenistan are: 1) the establishment of the necessary legal conditions and guarantees for the functioning of the banking system of Turkmenistan;
2) effective single State monetary policy;
3) organizing cash circulation;
4) ensuring the effective functioning of settlement and payment system;
5) Organization of banking regulation and supervision;
6) maintaining price stability;
7) protecting the interests of creditors and investors of credit institutions;
8) anti-money laundering and terrorist financing in accordance with the legislation of Turkmenistan;
9) to ensure the effective management of international reserves (gold and currency assets) of Turkmenistan, including reserve State gold reserves.
 
Article 6. The functions of the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan in accordance with the goals and objectives defined by the present law, shall perform the following functions: 1) develops the project of the main directions of the single State monetary policy and submit it for the consideration of the Board of the Central Bank of Turkmenistan;
2) carries out measures to implement the single State monetary policy;
3) independently and through the banking system organizes and implements currency regulation and currency control in accordance with the legislation of Turkmenistan;
4) participates in the analysis and forecasting of Turkmenistan economy;
5) sets the official exchange rates of foreign currencies against the national currency;
6) carries out issue of banknotes and their retirement and is the sole issuer of banknotes by the Central Bank of Turkmenistan on the territory of Turkmenistan;
7) organizes cash monetary circulation on the territory of Turkmenistan;
8) sets the rules for accounting, storage, transport and collection of money and other valuables;
9) creates a State reserve funds of money and other valuables;
10) performs registration of credit institutions, as well as licensing of banking activity, with precious metals and precious stones, in accordance with the legislation of Turkmenistan;
11) establishes rules of settlements in Turkmenistan and supervises their implementation;
12) serves the accounts department, accounts of credit institutions and other clients;
13) provides content and maintenance of international reserves (gold and currency assets) of Turkmenistan, including reserve gold reserve of the State;
14) regulates the system of accounting and financial reporting with credit institutions registered in Turkmenistan, in accordance with the legislation of Turkmenistan and international financial reporting standards;
15) establishes general rules for opening bank accounts and conduct banking transactions;
16) determines the order of implementation of payments to international organizations and foreign States, as well as with individuals and legal entities of foreign States;
17) carries out the refinancing of credit institutions and a lender of last resort;
18) organizes the compilation of balance of payments of Turkmenistan;
19) carries out banking regulation and banking supervision;
20) is responsible for supervising credit institutions and persons engaged in activities associated with precious metals and precious stones, measures to counter money laundering and terrorist financing;
21) takes deposits from foreign correspondent banks and other credit institutions on a contractual basis;
Item 22 lost effect according to the Turkmenistan law dated 23.05.2015 № 234-v. 23) participate in training for the banking system of Turkmenistan;
24) carries out all types of banking operations and transactions;
25) perform other functions under its jurisdiction in accordance with the legislation of Turkmenistan.
2. The Central Bank of Turkmenistan have the right to: 1) create provisions (reserves) doubtful and cynical;
2) to issue debt on its behalf.
 
Article 7. The Central Bank of Turkmenistan's right of recourse to the courts of the Central Bank of Turkmenistan in order to protect their interests may seek redress in the courts of Turkmenistan and international courts and arbitral tribunals.
 
Chapter 3. The capital of the Central Bank of Turkmenistan Article 8. Composition of capital, the Central Bank of Turkmenistan 1. The capital of the Central Bank of Turkmenistan consists of the authorized capital, funds and reserves created in accordance with the legislation of Turkmenistan.
2. The Central Bank of Turkmenistan may not dispose of or pledge their capital.
 
Article 9. The authorized capital of the Central Bank of Turkmenistan 1. The authorized capital of the Central Bank of Turkmenistan is formed at rates to be determined by an act of the President of Turkmenistan.

2. the authorized capital of the Central Bank of Turkmenistan may not be subject to penalties (claims) by creditors.
 
Article 10. Net income of the Central Bank of Turkmenistan 1. Net income of the Central Bank of Turkmenistan, which is defined as the difference between the amount of income from banking operations and transactions and the costs (including the cost of provisions and other reserves), related to the implementation of the Central Bank of Turkmenistan functions established by the present law.
2. Net income of the Central Bank of Turkmenistan is divided to create (recharge) funds and reserves in accordance with article 11 of this law, as well as the increase of the Charter capital of the Central Bank of Turkmenistan.
3. Deductions from net income to increase in the authorized capital of the Central Bank of Turkmenistan and (or) capacity (recharge) funds and reserves, shall be determined by the Board of the Central Bank of Turkmenistan.
4. Part of the net income remaining after allocation in accordance with paragraph 3 of this article, is used by decision of the Cabinet of Ministers of Turkmenistan.  
5. In case of insufficiency for damages of a fiscal year means the primary Reserve Fund and the Fund for general banking risks covering the losses of the Central Bank of Turkmenistan related: and) lending and financing expenditures of the Government of Turkmenistan;
b) losses resulting from fluctuations of gold, special drawing rights or foreign currencies vis-à-vis the manat, compensated due to sources, defined by the Cabinet of Ministers of Turkmenistan.
 
Article 11. Funds and reserves of the Central Bank of Turkmenistan 1. Funds of the Central Bank of Turkmenistan include primary Reserve Fund, to cover the general banking risks and other funds provided by the legislation of Turkmenistan.  
2. The primary Reserve Fund and to cover general banking risks generated in the amount not less than the size of the share capital of the Central Bank of Turkmenistan.
The primary reserve fund is intended exclusively for compensation for losses and damages for ongoing operations of the Central Bank of Turkmenistan in the manner prescribed by the Board of the Central Bank of Turkmenistan.  
3. The reserves of the Central Bank of Turkmenistan include asset revaluation reserve and other reserves provided for by the legislation of Turkmenistan.
Revaluation reserve assets from the Central Bank of Turkmenistan takes into account changes in the value of assets the Central Bank of Turkmenistan.
4. The Central Bank of Turkmenistan with the permission of the President of Turkmenistan may establish other special purpose funds and reserves.
 
Article 12. Taxation of the Central Bank of Turkmenistan Turkmenistan Central Bank Assessment is made in accordance with the tax laws of Turkmenistan.
 
Article 13. The release of the Central Bank of Turkmenistan from government fees and charges, the Central Bank of Turkmenistan shall be exempt from payment of State fees and charges, except for those kinds of local taxes which are payable in accordance with the tax laws of Turkmenistan.
 
Chapter 4. Organizational chart of the Central Bank of Turkmenistan Article 14. Structure and administration of the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan represents a unified system with vertical management structure.
In the system of the Central Bank of Turkmenistan includes the central apparatus subdivisions (branches, representative offices, enterprises, organizations and institutions).
2. The management body of the Central Bank of Turkmenistan is the Board of the Central Bank of Turkmenistan.
 
Article 15. The Board of the Central Bank of Turkmenistan 1. The Board of the Central Bank of Turkmenistan consists of an odd number of members.  
The Board consists of the President of the Central Bank of Turkmenistan, who is also Chairman of the Board of the Central Bank of Turkmenistan and members of the Board of Directors of the Central Bank of Turkmenistan.
2. the members of the Board of the Central Bank of Turkmenistan are appointed and dismissed by the President of Turkmenistan.
3. the members of the Board of the Central Bank of Turkmenistan are liable within the limits of their authority in accordance with the legislation of Turkmenistan.
 
Article 16. Powers of the Board of the Central Bank of Turkmenistan 1. The Board of the Central Bank of Turkmenistan provides overall management of the Central Bank of Turkmenistan.
2. The Board of the Central Bank of Turkmenistan: 1) introduced the President of Turkmenistan for consideration: a) the draft guidelines the single State monetary policy of Turkmenistan;
b) annual report of the Central Bank of Turkmenistan;
in) proposals for the management of international reserves (gold and currency assets) of Turkmenistan, including reserve gold reserve of the State;
g) if necessary, proposals to increase the size of the share capital of the Central Bank of Turkmenistan, the establishment of funds and reserves earmarked in accordance with part of the fourth article 11 of this law;
2) defines: a) measures for the realization of basic directions of single State monetary policy of Turkmenistan;
b) quota and conditions for admission of foreign capital in the banking system of Turkmenistan;

in) denomination and other features of banknotes in circulation, as well as the conditions for removing money from circulation, as reported through the media;
3) alleges: (a)) work plan of the Board of the Central Bank of Turkmenistan;
b) annual financial statements of the Central Bank of Turkmenistan, as well as its estimate of revenues and expenditures and the use of the net income of the Central Bank of Turkmenistan;
in) the organizational structure of the Central Bank of Turkmenistan, regulations (statutes) of its structural divisions;
g) conditions, system and wages, conditions of social support of employees of the Central Bank of Turkmenistan in accordance with the legislation of Turkmenistan;
d) regulations for agents of the Central Bank of Turkmenistan;
(e)) of the order of formation and use of funds and reserves of the Central Bank of Turkmenistan;
4) takes decisions: a) on the establishment, reorganization or liquidation of the central apparatus of the services and departments of the Central Bank of Turkmenistan;
b) on establishment, reorganization or liquidation of the committees of the Central Bank of Turkmenistan, including monetary and Exchange, as well as working groups and commissions needed to implement the activities of the Central Bank of Turkmenistan;
in) of a limit (the limits) on the open market;
g) on the application of direct quantitative restrictions;
d) on the establishment of refinancing;
(e)) on the establishment of prudential regulations for credit institutions;
Yo) for the manufacture, acquisition and delivery of valuable gifts, decorations and medals of precious metals and jewels under sketches approved by the President of Turkmenistan and intended for holding public events;
f) on release of banknotes by the Central Bank of Turkmenistan, a new sample, including commemorative, commemorative and Numismatic coins, about the retirement of banknotes by the Central Bank of Turkmenistan, the old model;
w) on measures of social support for workers;
and for the acquisition of real estates) for the activities of the Central Bank of Turkmenistan and its structural divisions;
k) on the order of formation of reserve requirements of credit institutions;
5) manages international reserves (gold and currency assets) of Turkmenistan, including reserve gold reserve of the State;
6) considers the procedure for determining the exchange rates;
7) hears reports of Heads of structural subdivisions of the Central Bank of Turkmenistan;
8) exercise other powers in accordance with this law.
 
Article 17. Meetings of the Board of the Central Bank of Turkmenistan 1. Meetings of the Board of the Central Bank of Turkmenistan are carried out in accordance with the approved work plan of the Board of the Central Bank of Turkmenistan, but not less than once a quarter.
2. If necessary, the Board meeting of the Central Bank of Turkmenistan may be convened by the President of the Central Bank of Turkmenistan.
Meeting of the Board of the Central Bank of Turkmenistan may be convened at the written request of at least three members of the Board of the Central Bank of Turkmenistan, and in case of emergency, two members of the Board of the Central Bank of Turkmenistan.
3. meeting of the Board of the Central Bank of Turkmenistan is entitled, if the meeting is present not less than two thirds of the total membership of the Board of the Central Bank of Turkmenistan.
4. the meetings of the Board of the Central Bank of Turkmenistan Turkmenistan Central Bank Chairman shall preside, and in his absence-the person replacing him from among the members of the Board of the Central Bank of Turkmenistan.
5. members of the Board of the Central Bank of Turkmenistan shall be notified in writing a meeting of the Board of the Central Bank of Turkmenistan.
6. decisions of the Board of the Central Bank of Turkmenistan shall be taken by a simple majority vote of the Board members present at the meeting. Each Member of the Board of the Central Bank of Turkmenistan shall have one vote. In the event of an equality of votes, the vote of the Chairman of the Central Bank of Turkmenistan is decisive.
7. Minutes of meetings of the Board of the Central Bank of Turkmenistan shall be formalised by the Secretary of the Board of the Central Bank of Turkmenistan, who is appointed by the President of the Central Bank of Turkmenistan, from among the employees of the Central Bank of Turkmenistan.
The Secretary of the Board of the Central Bank of Turkmenistan is not a member of the Board of the Central Bank of Turkmenistan.
Minutes of the meetings of the Board of the Central Bank of Turkmenistan are confidential documents, are processed in a single copy and shall be signed by the Chairperson of the meeting, present members of the Board and Secretary of the Board of the Central Bank of Turkmenistan.
8. at the meeting of the Board of the Central Bank of Turkmenistan may be invited employees of the Central Bank of Turkmenistan, its structural divisions, credit institutions and other organizations.
 
Article 18. The Chairman of the Central Bank of Turkmenistan
 

1. the Chairman of the Central Bank of Turkmenistan carries out general management of the Central Bank of Turkmenistan, is acting on behalf of the Central Bank of Turkmenistan and represent its interests without power of Attorney in relations with State authorities, local authorities, credit institutions, organizations of foreign States, international and other organizations in Turkmenistan and abroad.
2. the Chairman of the Central Bank of Turkmenistan: 1) appoint and dismiss the Chief of the audit service of the Central Bank of Turkmenistan;
2) defines the agents of the Central Bank of Turkmenistan and correspondent banks;
3) approves the regulatory acts of the Central Bank of Turkmenistan;
4) signs agreements and agreements concluded by the Central Bank of Turkmenistan;
5) publishes the orders and directives binding on all services of the central apparatus of the Central Bank of Turkmenistan and its structural divisions;
6) approves staffing, salaries and job descriptions of employees of the Central Bank of Turkmenistan;
7) carries out recruiting employees of the Central Bank of Turkmenistan and their dismissal in accordance with the legislation of Turkmenistan;
8) appoint and dismiss heads of the structural subdivisions of the Central Bank of Turkmenistan, except in cases where the appointment and dismissal of the heads of the structural subdivisions of the Central Bank of Turkmenistan falls within the competence of the President of Turkmenistan;
9) exercise other powers in accordance with this law.
3. the Chairman of the Central Bank of Turkmenistan has the right to delegate part of his authority to his Deputy.
4. the Chairman of the Central Bank of Turkmenistan submits to the President of Turkmenistan proposals on the candidacy for the post of Deputy Chairman of the Central Bank of Turkmenistan.
5. the Chairman of the Central Bank of Turkmenistan is responsible for the activities of the Central Bank of Turkmenistan.
6. In case of absence of the Chairman of the Central Bank of Turkmenistan, or the inability to carry out its duties, its power by one of his deputies.
 
Article 19. Subdivisions of the Central Bank of Turkmenistan 1. Subdivisions of the Central Bank of Turkmenistan carried out their activities in accordance with the provisions (statutes) about them.
2. Structural subdivision in its activities regardless of the local organs of executive power and does not assume any liability for the obligations of the State, except where such liability is imposed on him by the Central Bank of Turkmenistan.
Subdivisions of the Central Bank of Turkmenistan, which are legal entities shall be liable for its obligations in accordance with the legislation of Turkmenistan.
The Central Bank of Turkmenistan shall bear liability for the obligations of the structural units of the Central Bank of Turkmenistan, are not legal entities.
3. Supervision of the structural unit of the Central Bank of Turkmenistan carries out its head.
The head of the structural unit of the Central Bank of Turkmenistan, which is not a legal entity carries out its activities based on the power of Attorney issued by the Central Bank of Turkmenistan.
4. the head of the structural unit of the Central Bank of Turkmenistan shall be empowered, in accordance with Regulation (Charter) of the OU.
5. the head of the structural unit of the Central Bank of Turkmenistan is responsible for this structural unit in accordance with the legislation of Turkmenistan.
6. The Central Bank of Turkmenistan if necessary provides financial resources to their structural units in order to ensure their activities.
 
Article 20. Employees of the Central Bank of Turkmenistan 1. Labour relations of the employees of the Central Bank of Turkmenistan, their social security is regulated by the legislation of Turkmenistan.
2. officials of the Central Bank of Turkmenistan bear the responsibility for the activities of the Central Bank of Turkmenistan, within the limits of his powers in accordance with the legislation of Turkmenistan.
3. The Central Bank of Turkmenistan in accordance with the legislation of Turkmenistan have the right to take measures on social support of employees, including the purchase of real estate associated with the improvement of the socio-housing conditions for its employees.
4. The Central Bank of Turkmenistan is implementing measures to improve the skills of their employees in accordance with the legislation of Turkmenistan.
5. employees of the Central Bank of Turkmenistan have no right to disclose banking secrets and other confidential information which has become known to them in connection with the performance of official duties, except for the cases stipulated by the legislation of Turkmenistan, as well as use it for personal gain.
6. Persons guilty of divulging proprietary information shall bear responsibility in accordance with the legislation of Turkmenistan.
 
Chapter 5. Currency and currency of Turkmenistan. Cash currency circulation
 

Article 21. Currency and currency of Turkmenistan 1. Currency of Turkmenistan (the national currency) is manat. One manat is equal to 100 tenge.
2. Cash in circulation consists of banknotes of the Central Bank of Turkmenistan.
3. the only legal tender on the territory of Turkmenistan is manat.
4. The use of foreign currency on the territory of Turkmenistan as a means of payment is regulated by the legislation of Turkmenistan.
5. The introduction of the currency on the territory of Turkmenistan and the issue of banknotes, not provided for by the legislation of Turkmenistan, it is prohibited.
 
Article 22. Organizing cash circulation, the Central Bank of Turkmenistan with a view to organizing cash circulation in the territory of Turkmenistan: 1) develop and approve order of cash operations of credit institutions and their customers;
2) defines the need for the State to issue banknotes and places an order of their production;
3) defines signs protection of banknotes;
4) organizes the transport and storage of banknotes from the Central Bank of Turkmenistan, provides for the establishment of their reserve funds;
5) establishes signs solvency of banknotes by the Central Bank of Turkmenistan;
6) holds the issuance and retirement of currency;
7) defines how to replace manufactured banknotes into circulation, as well as the order of destruction of damaged and withdrawn from circulation banknotes;
8) without limitation exchanges dilapidated and damaged banknotes in accordance with the established rules;
9) applies different measures to regulate currency circulation.


 

Article 23. Requirements for acceptance of banknotes 1. Banknotes of the Central Bank of Turkmenistan are required to take at face value on the whole territory of Turkmenistan on all types of payments and settlements, as well as for the accounts, deposits and for translation.
Banknotes of the Central Bank of Turkmenistan without limitation is exchanged at all banks of Turkmenistan.
2. Banknotes by the Central Bank of Turkmenistan are the unconditional commitment of the Central Bank of Turkmenistan and are provided with all its assets.
 
Article 24. Issuance and retirement of currency notes 1. Issue of banknotes, their treatment and retirement on the territory of Turkmenistan shall be carried out exclusively by the Central Bank of Turkmenistan.
2. Declaration on the exchange of banknotes into circulation by the Central Bank of Turkmenistan, or invalidation are exclusive powers of the Central Bank of Turkmenistan.
 
Article 25. The currency reform of Turkmenistan Turkmenistan's currency Reform is carried out in accordance with the legislation of Turkmenistan.
 


Article 26. Converting manats

 
Converting manats is carried out in accordance with the procedure determined by the legislation of Turkmenistan.


 



Article 27. A ban on the manufacture and distribution of counterfeit currency of Turkmenistan manufacture and distribution of counterfeit currency of Turkmenistan shall be prohibited and punishable by law.


 



Chapter 6. The conduct of monetary policy

 


Article 28. The main instruments of monetary policy

 
The main instruments of monetary policy, the Central Bank of Turkmenistan are: 1) interest rates on operations of the Central Bank of Turkmenistan;
2) dimensions reserve requirements deposited at the Central Bank of Turkmenistan;
3) open market operations;
4) refinancing of credit institutions;
5) interventions;
6) benchmarking monetary growth;
7) direct quantitative restrictions;
8) other monetary policy tools.
 
Article 29. Interest rates on operations of the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan may establish one or more interest rates on various types of transactions or conduct interest policy without a fixed interest rate.
2. The Central Bank of Turkmenistan uses the interest policy to influence market interest rates.
 
Article 30. Reserve requirements 1. Reserve requirements-this means credit institutions, deposited in the Central Bank of Turkmenistan in order to regulate the General liquidity of the banking system of Turkmenistan.
2. The standard of reserve requirements, as well as their deposit at the Central Bank of Turkmenistan establishes the regulations of the Central Bank of Turkmenistan.
3. The standard reserve requirements may not exceed 20 per cent of the liabilities of the credit institution and can be differentiated for various credit institutions.
4. If there is a violation of the standard reserve requirements the Central Bank of Turkmenistan have the right to recover from the correspondent account of the credit institution, opened in the Central Bank of Turkmenistan, indisputably amount nedovnesënnyh.
5. The reserve requirements of foreclosure do not turn.
6. In case of liquidation of the credit institution, the Central Bank of Turkmenistan in the prescribed manner gets credit institution the amount of reserve requirements.
 
Article 31. Open market operations
 

1. open market operations refers to the purchase and sale of the Central Bank of Turkmenistan Government securities, securities of the Central Bank of Turkmenistan, including debt securities, as well as short-term transactions with these securities with a right to commit subsequently reverse the transaction.
2. The Central Bank of Turkmenistan in order to regulate the volume of money supply within the established limit conducts open market operations to purchase or sell directly on its own behalf or through a securities repurchase agreement, referred to in the first part of this article.
 
Article 32. Refinancing of credit institutions 1. The procedure and conditions for refinancing credit institutions (including the definition of limits) are set by the Central Bank of Turkmenistan.
2. The Central Bank of Turkmenistan carries only refinancing because of special circumstances, caused by the need to maintain the liquidity of credit institutions.
 
Article 33. Direct quantitative restrictions of the Central Bank of Turkmenistan 1. Direct quantitative restrictions of the Central Bank of Turkmenistan refers to limits on the refinancing of credit institutions and on the certain types of banking operations.
2. The Central Bank of Turkmenistan adjusts the total amount of loans issued in accordance with the single State monetary policy of Turkmenistan.
3. The Central Bank of Turkmenistan, in exceptional cases, upon agreement with the Cabinet of Ministers of Turkmenistan have the right to apply direct quantitative restrictions is equally related to all credit institutions.
 
Article 34. Interventions of the Central Bank of Turkmenistan currency interventions are carried out by the Central Bank of Turkmenistan in accordance with the legislation of Turkmenistan.
 
Article 35. Benchmarking the growth of money supply, the Central Bank of Turkmenistan may establish reference points one or more indicators of growth of the money supply on the basis of the basic directions of the single State monetary policy.
 


Article 36. Banking operations and transactions of the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan, in order to achieve the objectives stipulated in this law, is entitled to exercise the following banking operations and transactions: 1) provide loans collateralized securities and other assets, unless otherwise prescribed by the legislation of Turkmenistan;
2) buying and selling government securities on the open market;
3) buy and sell bonds issued by the Central Bank of Turkmenistan, and certificates of deposit;
4) buy and sell foreign currency, as well as payment documents and commitments denominated in foreign currency issued by credit institutions of Turkmenistan and foreign States;
5) purchase, store, sell precious metals and other types of currency values in accordance with the legislation of Turkmenistan;
6) settlement, cash and deposit operations take storage and in the Office of securities and other assets;
7) to carry out operations with financial instruments used to manage financial risks;
8) open accounts with credit institutions of Turkmenistan and foreign States;
9) display cheques and bills in any currency;
10) carry out other banking operations and transactions on its behalf in accordance with customary business practice, accepted in international banking practice.
The Central Bank of Turkmenistan have the right to carry out banking operations and transactions on a Commission basis, except for the cases stipulated by the legislation of Turkmenistan.
2. The Central Bank of Turkmenistan may not: 1) provide financial assistance in the form of a direct loan, non-returnable loans, contingent liability or in any other form, except in the case provided for in part six article 19 of this law;
2) to participate in the capital of credit institutions, other commercial and non-profit organizations, unless otherwise prescribed by the legislation of Turkmenistan;
3) engage in commercial activities;
4) acquire real property ownership or shares in it, except when it is necessary to ensure the activities of the Central Bank of Turkmenistan, as well as training, recreation, social support of employees of the Central Bank of Turkmenistan.
 
Chapter 7. Foreign-economic relations.
Currency transactions Article 37. External relations 1. The Central Bank of Turkmenistan presents interests of Turkmenistan in its relations with the central banks of foreign countries, international banks and other international financial organizations and develops cooperation with them.
2. The Central Bank of Turkmenistan in the cases stipulated by the legislation of Turkmenistan and the international treaties of Turkmenistan, on the instructions of the Cabinet of Ministers of Turkmenistan: 1) participates on behalf of Turkmenistan in inter-State meetings, intergovernmental meetings, councils and represents its interests in the field of monetary policy;

2) as the representative of Turkmenistan due to funding, certain legislation of Turkmenistan, shall assume obligations and carries out operations associated with the participation of Turkmenistan in the work of international organizations.
 
Article 38. Currency regulation and currency control, the Central Bank of Turkmenistan is the Monetary Authority and currency controls and carries out these functions in accordance with the legislation of Turkmenistan.
 
Article 39. International reserves of Turkmenistan 1. The Central Bank of Turkmenistan manages international reserves of Turkmenistan and ensures their maintenance and servicing.
2. The Central Bank of Turkmenistan carries out measures on maintenance of international reserves of Turkmenistan at a level that ensures an effective State monetary and foreign exchange policy and timely payments of the State on international operations.
3. In cases of reduction of the level of international reserves of Turkmenistan or the threat of them to level against Turkmenistan possibility of holding effective State monetary and foreign exchange policy, as well as the timely calculation of countries for international transactions, the Central Bank of Turkmenistan presents information on the status of the President of Turkmenistan of international reserves of Turkmenistan, together with an indication of the reasons which have led or could lead to reduce them, as well as proposals to remedy them.
4. The Central Bank of Turkmenistan is the President of Turkmenistan proposals on the structure and placement of international reserves of Turkmenistan.
 
Article 40. Manage international reserves of the Central Bank of Turkmenistan in order to manage international reserves (gold and currency assets) of Turkmenistan, including reserve State gold reserves the right to carry out the following operations: 1) buy, sell or carry out other operations with: a) freely convertible foreign currency;
b) securities issued and guaranteed by the Cabinet of Ministers of Turkmenistan in foreign currency, Governments, Central (national) banks of foreign countries or international financial institutions;
) Gold (monetary gold);
g) securities issued by issuers with a credit rating, the minimum level which shall be determined by the Board of the Central Bank of Turkmenistan;
2) open an account in the Central (national) banks of first-class and other banks and financial institutions of foreign States, as well as with international financial institutions;
3) open and maintain accounts, act as representative or correspondent of the Central (national) Bank, other banks and financial institutions of a foreign State eligible under the laws of the States in which they are registered, foreign Governments and their agents, as well as the international financial organizations;
4) in the manner prescribed by the legislation of Turkmenistan, Turkmenistan to import into precious metals and other valuables, as well as to export them abroad to be placed on their accounts in foreign banks and specialized financial institutions;
5) to conduct transactions with debt obligations issued by issuers with a credit rating, the minimum level which shall be determined by the Board of the Central Bank of Turkmenistan;
6) to conduct transactions with derived financial instruments with kontrpartnërami credit ratings, which is not below the minimum level of credit rating, defined by the Board of the Central Bank of Turkmenistan;
7) to perform other operations on the decision of the Board of the Central Bank of Turkmenistan.
 
Chapter 8. The relationship of the Central Bank of Turkmenistan with the State of Article 41. The relationship of the Central Bank of Turkmenistan with the organs of State power and administration and local authorities 1. The Central Bank of Turkmenistan, implementing its mandated functions, participates in the development of State economic policy.
2. the Chairman of the Central Bank of Turkmenistan have the right to participate in meetings of the Cabinet of Ministers of Turkmenistan, to participate in the sessions of the Mejlis of Turkmenistan when considering draft legislative acts of Turkmenistan concerning the issues of the economic, monetary, financial and banking policies.
3. The Central Bank of Turkmenistan have the right to grant loans to the Cabinet of Ministers of Turkmenistan, through the Ministry of Finance of Turkmenistan in accordance with the legislation of Turkmenistan.
4. The Central Bank of Turkmenistan is not liable for the obligations of the State, the State is not liable for the obligations of the Central Bank of Turkmenistan, unless the Central Bank of Turkmenistan or the State take on such a responsibility.
5. The Central Bank of Turkmenistan when implementing the functions assigned to him the laws of Turkmenistan, independent from the State authorities and management of local authorities.
 
Article 42. The Central Bank of Turkmenistan as a banker, Advisor and fiscal agent of Turkmenistan 1. The State budget of Turkmenistan are stored in the Central Bank of Turkmenistan, unless otherwise provided by the legislation of Turkmenistan.

2. The Central Bank of Turkmenistan carries out banking services of the Cabinet of Ministers of Turkmenistan, as well as operations with funds of the State budget of Turkmenistan without charging commissions.
This does not apply to: (a)) compensation commissions charged by foreign banks, which is based on actual costs;
b) categorizing compensation commissions side Treaty that performs work, providing services and carrying out the supply of goods for consumers.
3. The Central Bank of Turkmenistan on the instructions of the Cabinet of Ministers of Turkmenistan and at the expense of the State budget of Turkmenistan carries out internal and external banking debt.
4. The Central Bank of Turkmenistan is an advisor to the Cabinet of Ministers of Turkmenistan in the development and implementation of the policy of State borrowing, forming the State budget of Turkmenistan on monetary policy.
5. The Central Bank of Turkmenistan acts as fiscal agent in Turkmenistan on the terms agreed with the President of Turkmenistan.
 
Article 43. The Central Bank of Turkmenistan as a depository bank 1. The Central Bank of Turkmenistan have the right to act as a depository bank and banking operations of the Cabinet of Ministers of Turkmenistan.
2. The Central Bank of Turkmenistan have the right to allow other institutions to accept deposits from the Cabinet of Ministers of Turkmenistan in accordance with the conditions laid down by the Central Bank of Turkmenistan.
 
Chapter 9. Turkmenistan Central Bank relations with credit institutions and other clients of Article 44. Correspondent and other accounts opened in the Central Bank of Turkmenistan 1. The Central Bank of Turkmenistan is authorized to carry on their balance of correspondent and other accounts of credit institutions, financial institutions and other clients and receive deposits in accordance with the rules established by the Central Bank of Turkmenistan.
2. Credit institutions of Turkmenistan are obliged to open correspondent accounts in the Central Bank of Turkmenistan.
 
Article 45. Organization of cashless payments 1. The Central Bank of Turkmenistan establishes the forms, rules and terms, as well as standards of non-cash payments.
2. The Central Bank of Turkmenistan is conducting interbank cashless payments through their correspondent banks.
 
Chapter 10. Banking regulation and banking supervision Article 46. Basics of banking regulation and supervision 1. The Central Bank of Turkmenistan is an organ of the banking regulation and supervision over the activities of credit institutions registered in the territory of Turkmenistan.
2. the objectives of bank regulation and supervision are maintaining the stability of the banking system of Turkmenistan and the protection of interests of depositors and creditors, ensuring compliance with the legislation of Turkmenistan.
The Central Bank of Turkmenistan shall not interfere with the operational activities of credit institutions, except for the cases stipulated by the legislation of Turkmenistan.
3. The Central Bank of Turkmenistan with a view to the implementation of banking regulation and supervision: 1) establishes binding general rules for credit institutions to conduct bank transactions, keeping of accounting records, preparation and presentation of financial statements in accordance with international financial reporting standards, the preparation and submission of statistical reports, organization of internal control;
2) conducts inspections of credit institutions, carries out the inspection of accounts, books and other documents;
3) sets the licensing procedures and obligatory economic standards for credit institutions, as well as oversees their implementation;
4) establishes qualifications for managers and officials of a certain category of credit institutions in accordance with the legislation of Turkmenistan;
5) establishes the procedure for the formation of the Fund of guaranteeing deposits of individuals and its use in accordance with the legislation of Turkmenistan.
4. in order to ensure the sustainability of credit institutions in accordance with paragraph 3 of part 3 of this article, the Central Bank of Turkmenistan may establish the following obligatory economic standards: 1) the minimum amount of the authorized capital for credit institutions to be created, the amount of own funds (capital) to get non-bank credit institution status of the Bank;
2) size limit of property (non-monetary) contributions to the share capital of the credit institution;
3) maximum risk for one borrower or a group of related borrowers;
4), the maximum size of a large credit risks;
5) liquidity ratios of the credit institution;
6) standards of adequacy of own funds (capital);
7) standards for the use of own funds (capital) of the credit institution for the purchase of stocks (shares) of other legal entities;
8) the maximum size of loans, bank guarantees and sureties granted by a credit institution to its founders (participants);
9) where appropriate-other standards for risk management.

5. The Central Bank of Turkmenistan shall elaborate and approve the method of determination of own funds (capital) of the credit institution, the assets, liabilities and exposures on assets for each standard taking into account international standards and consultations with credit institutions.
The Central Bank of Turkmenistan may establish differential standards and methodology for their calculation on types of credit institutions.
6. About the upcoming change of prudential regulations and methodologies for their calculation, the Central Bank of Turkmenistan formally announced no later than one month prior to their introduction.
 
Article 47. Implementation of banking regulation and supervision 1. The Central Bank of Turkmenistan in order to implement the banking regulatory and supervisory checks activities of credit institutions.
2. In the case of irregularities in the activities of the credit institution, the Central Bank of Turkmenistan shall provide him or her with binding instructions on Elimination of revealed violations and apply sanctions to it under this Act.
3. Checks may be carried out by the service of banking supervision Central Bank of Turkmenistan and its territorial services.
The procedure for conducting checks of credit institutions shall be approved by the Board of the Central Bank of Turkmenistan.
4. The Central Bank of Turkmenistan when carrying out banking regulation and banking supervision may not carry out an audit of the credit institution more than once a year and more than one check on the same issues in the same reporting period, the activities of the credit institution, except as provided by paragraph 5 of this article.
5. Holding of Central Bank of Turkmenistan re-validation of the credit institution on the same issues in the same reporting period, the activities of a credit institution is permitted in the following cases: 1) if such verification shall take place in conjunction with the reorganization or liquidation of the credit institution;
2) in order to monitor the activities of territorial services of banking supervision Central Bank of Turkmenistan, carried out the check of the credit institution. Recheck the credit institution in the manner specified control is held by the Central Bank of Turkmenistan by a reasoned decision of the President of the Central Bank of Turkmenistan;
3) in other cases stipulated by the legislation of Turkmenistan.
6. in order to implement the banking supervision Central Bank of Turkmenistan have the right to request and obtain the necessary information from credit institutions on their activities, including on the financial position and business reputation of the founders (participants) on specific operations and seek clarification on the information received.
7. The Central Bank of Turkmenistan may not: 1) demand from credit institutions not covered by the laws of Turkmenistan provide customer information to credit institutions and other third parties unconnected with the banking needs of these persons;
2) should not directly or indirectly provided by the legislation of Turkmenistan, restrictions on the operations of customers of credit institutions;
3) oblige credit institutions require from their customers ' documents, not stipulated by the legislation of Turkmenistan.
 
Article 48. Sanctions applied by the Central Bank of Turkmenistan on credit institutions 1. In cases where a credit institution the legislation of Turkmenistan, issued in accordance with the regulatory acts of the Central Bank of Turkmenistan, of failure to submit information, submission of incomplete or false information, the Central Bank of Turkmenistan have the right to demand from the credit agencies address the violations, collect a fine of up to 0.1 per cent of the minimum amount of the authorized capital, or it may restrict credit institution holding certain types of banking operations for up to six months.
2. In the case of non-observance of the requirements of the Central Bank of Turkmenistan on Elimination of revealed violations in the activities of a credit institution within the period prescribed by the Central Bank of Turkmenistan, as well as if these violations or committed by a credit institution operation or transaction created a real threat to the interests of its creditors, the Central Bank of Turkmenistan have the right to: 1) recover from a credit institution is a fine of up to 0.1 per cent of the size of the paid-up equity capital but not more than 0.1 per cent of the minimum amount of the authorized capital established by the Central Bank of Turkmenistan;
2) require a credit institution in implementation: a) financial recovery activities of the credit institution, including changes in the structure of its assets;
b) reorganization of the credit institution;
3) change for a period of up to six months a credit institution established for the obligatory economic standards;
4) for up to one year, a ban on lending institution certain types of banking operations under the licence granted to him for carrying out banking operations, and (or) at the opening of the branch;

5) to send to the competent authority of the credit institution management representation on removal from Office its leaders or other officials or conduct re-evaluation of professional certification of persons subject to conformity with the Central Bank of Turkmenistan, as well as to appoint a transitional administration on the management of the credit institution for a period of up to six months in the order established by the legislation of Turkmenistan;
6) prohibit the implementation of reorganization of a credit institution if its holding have reason to apply measures to prevent bankruptcy of the credit institution in accordance with the legislation of Turkmenistan;
7) temporarily suspend or revoke the license of the credit institution in accordance with the legislation of Turkmenistan.
3. The Central Bank of Turkmenistan is not responsible for damages caused by the application of sanctions under this law.
4. the procedure for the application of sanctions to the credit institution shall be established by the Central Bank of Turkmenistan.
5. The amount of penalties, in accordance with paragraphs 1 and 2 of this article shall be listed in the State budget of Turkmenistan.  
6. The Central Bank of Turkmenistan carries out an analysis of the activities of credit institutions, with a view to identifying situations that threaten the legitimate interests of their depositors and creditors, the stability of the banking system of Turkmenistan.
 
Article 49. Cooperation with the banking supervision authorities of foreign States, the Central Bank of Turkmenistan carries out cooperation based on reciprocity with banking supervision authorities of foreign States, including the exchange of information regarding any of the credit institution and (or) financial institution operating within their jurisdiction, subject to the mutual respect the confidentiality of the information received.
 
Chapter 11. Accounting and reporting of the Central Bank of Turkmenistan. Audit of the Central Bank of Turkmenistan Article 50. Accounting of the Central Bank of Turkmenistan Central Bank of Turkmenistan conducts accounting in accordance with the legislation of Turkmenistan.
 
Article 51. Annual report 1. The financial year of the Central Bank of Turkmenistan is installed with 1 January to 31 December (calendar year).
2. The Central Bank of Turkmenistan annually at the expiration of three months after the end of each financial year, submit to the President of Turkmenistan's annual report on the activities of the Central Bank of Turkmenistan.
Annual report of the Central Bank of Turkmenistan includes: 1) report on monetary policy and the State of the financial market;
2) report on the activities of the Central Bank of Turkmenistan in istëkšem year;
3) annual financial statements of the Central Bank of Turkmenistan.
3. The Central Bank of Turkmenistan shall prepare and submit annual financial statements in accordance with the legislation of Turkmenistan.
Composition of financial statements of the Central Bank of Turkmenistan shall be determined in accordance with accounting policies.
4. Financial statements, is published in the Official Gazette of the Central Bank of Turkmenistan and posted on his official website.  
 
Article 52. The collection, presentation and publication of information 1. For the compilation of the banking and monetary statistics, balance of Turkmenistan, the analysis of economic situation in Turkmenistan, the Central Bank of Turkmenistan has the right to seek and receive information on a non-reimbursable basis from State Executive and administrative bodies, local authorities, legal entities under the form and terms established by the Central Bank of Turkmenistan.
2. The Central Bank of Turkmenistan is the Ministry of Finance of Turkmenistan information necessary for planning (forecasting) of the State budget of Turkmenistan and its execution, in the form and within the time limits set by the Ministry of Finance of Turkmenistan.
21. The Central Bank of Turkmenistan in accordance with the Turkmenistan law "on counteracting the legalization of proceeds from crime and financing of terrorism" is the authorized State body information regarding suspicious transactions and transactions as well as transactions and transactions subject to mandatory control.
3. The Central Bank of Turkmenistan publishes aggregated statistical and analytical information on the banking system of Turkmenistan.
 
Article 53. Audit and inspection of the activity of the Central Bank of Turkmenistan 1. External audit of the annual financial statements of the Central Bank of Turkmenistan is carried out by an independent audit organization designated by the President of Turkmenistan.
2. Internal audit activities of the Central Bank of Turkmenistan and its structural divisions is carried out by the audit service of the Central Bank of Turkmenistan, which reports directly to the President of the Central Bank of Turkmenistan.
3. audit of financial-economic activities of the Central Bank of Turkmenistan and its structural units of the State authorities of Turkmenistan is carried out with the consent or on the instructions of the President of Turkmenistan.
 
Chapter 12. Final provisions Article 54. Resolution of disputes
 

Disputes arising in the banking sector, are resolved in the order established by the legislation of Turkmenistan.
 
Article 55. Responsibility for violation of this Act, the violation of this law entails responsibility established by the legislation of Turkmenistan.
 
Article 56. The entry into force of this law 1. This law shall enter into force on the day of its official publication.
2. Void the law of Turkmenistan "on the Central Bank of Turkmenistan, adopted by the Majlis of Turkmenistan October 8, 1993 GODA (Statements of the Mejlis of Turkmenistan, 1993, no. 9-10, art. 86), all subsequent laws or their relevant parts, which made changes and additions.
3. Normative-legal acts of Turkmenistan contrary to this Act, shall be harmonized with it within three months from the date of its entry into force.
 
     Turkmen President Gurbanguly Berdimuhamedov mountains. Ashgabat, March 25, 2011 year no. 167-IV.