Submission to the Cabinet, in coordination with Fund staff, of amendments to the Central Bank’s legal framework to (i) introduce autonomous governance arrangements, (ii) improve its objectives and functions in line with best practice, (iii) provide for the phased-in recapitalization of the Central Bank, (iv) introduce a backing rule that requires a timetable to cover specific Central Bank liabilities with international reserve assets and (v) introduce a prohibition on quasi-fiscal activities of the Central Bank and on monetary financing of the government that prohibits quasi-fiscal spending by the Central Bank, as well as any direct or indirect lending to the non-financial public sector, including that via public banks (this covers the purchase of securities, advances, or guarantees, or financial transactions that are a condition precedent for lending operations entered into by the government but not trade credits), and (vi) introduce modifications to allow for the publication of external auditor's opinion and detailed notes.
To strengthen the institutional underpinnings of dollarization.