1) The capital of the Central Bank shall be Twenty Billion (20,000,000,000) Dirhams.

2) A sum of Seventeen Billion Five Hundred Million (17,500,000,000) Dirhams shall be transferred from the General Reserve Account, to increase the capital to the amount referred to in item (1) of this article.

3) The capital may be increased by a federal decree based on a proposal of the Board of Directors, presented by the Minister, and approved by the Cabinet. Such increase shall be paid either by transfer from the General Reserve Account or directly by the Government.

4) The capital of the Central Bank may only be reduced by a law.

5) The Central Bank shall establish a General Reserve Account that should not exceed four (4) times the paid up capital referred to in item (1) of this article. All net profit shall, after that, automatically devolve to the Government.

6) The Board of Directors shall, at the end of each financial year, determine the Central Bank’s annual net profits after deducting administrative and operational expenses, and allocating necessary funds for depreciation of assets and reserves, provisions for bad and doubtful debts and end of service indemnity for the staff of the Central Bank, along with the contingencies and/or other purposes the Board of Directors may determine, and in general, all other financial expenses normally deducted from net profits by banks, and the resulting net profits for each financial year shall be posted to the General Reserve Account.

7) The Cabinet shall issue a resolution specifying the percentage of profits to be retained by the Central Bank until the total balance of the General Reserve Account reaches the four (4) times limit referred to in item (5) hereof.

8) Should the balance of the General Reserve Account, as at end of any financial year, be insufficient to cover the losses of the Central Bank; the deficit shall be met by the Government.

The financial year for the Central Bank shall commence on the first day of January and end on the thirty-first day of December of each Year.

Operations of the Central Bank shall be conducted, and its balance sheet and accounts shall be organized in accordance with international standards and banking rules and customs. The Central Bank’s operations with third parties shall be considered commercial.

The accounts of the Central Bank shall be audited by an auditor or more, selected, periodically, by the Board of Directors. The Board of Directors shall determine the auditors’ annual remunerations.

1) Within three (3) months from end of the financial year, the Central Bank shall submit to the President of the State an annual report on the following:

       a. The Central Bank’s final accounts of the year, certified by the auditors of accounts. Such accounts shall be published in the Official Gazette.

      b. Central Bank’s activities and businesses during the financial year.

      c. An overview of monetary, banking and financial developments in the State.

2) The Central Bank shall submit the following to the Minister:

      a. Copy of the annual report referred to in item (1) of this article.

      b. The information the Minister may request on monetary, banking and financial developments in the State, along with semi-annual reports covering all aspects related to such developments.

      c. A quarterly statement on the Central Bank’s assets and liabilities, which shall be published in the Official Gazette.