Central Bank of Eswatini (CBE) - Mbabane - Eswatini

The Central Bank of Eswatini (CBE), formerly known as the Central Bank of Swaziland, is a public institution that serves as the primary monetary authority in Eswatini. Established in 1974, the CBE’s main mandate is to maintain price stability, manage the country’s foreign reserves, and regulate the financial sector to promote a stable and efficient economy. The bank operates under the oversight of the Government of Eswatini and plays a crucial role in shaping the country’s monetary policy and ensuring financial stability.

The CBE’s primary function is the implementation of monetary policy, which includes controlling inflation, stabilizing the national currency (the lilangeni, which is pegged to the South African rand), and maintaining overall economic stability. To achieve these goals, the central bank uses monetary tools such as interest rate adjustments, open market operations, and reserve requirements for commercial banks. The bank also manages Eswatini’s foreign exchange reserves, which are vital for supporting the peg to the South African rand and ensuring smooth international trade.

In addition to monetary policy, the Central Bank of Eswatini serves as the regulator of the country’s financial system. It supervises commercial banks, microfinance institutions, insurance companies, and other financial entities, ensuring that they comply with banking regulations and operate in a sound and safe manner. This role is essential in maintaining public trust in the financial system and preventing systemic risks that could destabilize the economy.

The CBE is also responsible for overseeing the payment systems in Eswatini, ensuring that financial transactions are processed efficiently and securely. This includes modernizing payment infrastructure to facilitate digital and electronic payments, which supports economic growth and financial inclusion.