1928 An up-to-date monetary system was established for Estonia. (1 kroon = 100 sents)
1933 The kroon was tied to the exchange rate of the British pound. (GBP 1 = EKR 18.35)
1940 Kroons were exchanged for rubles. (1 kroon = 1.25 roubles)
25 May 1992 Estonia became member of the International Monetary Fund.
19 June 1992 The monetary reform was announced at 9:00 pm.
20 June 1992 The Estonian kroon become the sole legal tender of the Republic of Estonia.
23 June 1992 Estonia became a member of the World Bank.
The significance and role of Eesti Pank
Eesti Pank is the central bank of the Republic of Estonia, that operates the Estonian monetary system.
The mission of Eesti Pank is to ensure price stability in Estonia. It gives the confidence to make long-term saiving and investment plans. Monetary stability is thhe basis of a lasting and successful economic and social development.
The main tasks carrying out its mission:
participating in the national economic policy.
ensuming financial stabiliti in Estonia.
arranging cash circulation in Estonia.
makeing preparations to become one of the policy-makers among other national central banks of the euro area.
General principles of Estonian monetary system
The primary objective of Eesti Pank is to ensure price stability by means of a stable exchange rate.
The Estonian monetary system is based on a currency board arrangement, under which the exchange rate of the Estonian kroon is pegged to the euro.
In order to maintain the fixed rate of the Estonian kroon, the central bank`s liabilities, including the monetary base in the economy, must be fully guaranteed by foreign exchange reserves.
Estonian banks use the latest technology in internet banking and almost all services are offered digitally. Even contracts can be digitally signed with an Estonian resident ID card and the use of a card reader.
This technology is available largely because most of Estonian banks have been taken over by Swedish, Norwegian or Finnish banking institutions.
Estonian cash dispensing machines accept all major debit and credit cards for cash withdrawal.
Banks in Estonia also offer the possibility to hold funds in different currencies in the same account.
The buildings of Eesti Pank
1. The building at Estonia pst 11 is the former building of the bank of the Credit Society of the Estonian Knighthood.
2. The building at Estonia pst 13 is the former Revel office of the Russian National Bank.
3. The building at Estonia pst 13 is the main building of Eesti Pank today.