Published June 1, 1998 | June 1998 issue National currency:
pound One of the world's older central banks, the Bank of
England was established by an Act of Parliament in 1694. The
Bank, known as the "Old Lady of Threadneedle Street," has stood
at the financial center of the City of London since 1734. As the
central bank of the United Kingdom, the Bank serves as the
central bank for England, Wales, Scotland and Northern Ireland.
The Bank of England's main responsibilities are to: advise the
government on monetary policy and print the country's bank
notes. In June 1998, legislation takes effect giving the Bank of
England operational independence with respect to monetary
policy. In addition, the bank's traditional duties as the
government's agent for debt management, the sale of government
bills and bonds (gilts), oversight of the gilts market and cash
management are transferred to the Treasury. Moreover, the Bank
of England's responsibility for supervising banks transfers to
the Financial Services Authority. The