Today’s Oesterreichische Nationalbank (OeNB) has a long and diverse history.
Two laws (patents) issued on June 1, 1816, by Emperor Francis I provided the legal basis for the foundation of the “privilegirte österreichische National-Bank” with the aim of reestablishing monetary order in Austria after the turbulence of the Napoleonic wars. The centerpiece of these patents consisted in according the “privilegirte oesterreichische National-Bank” the sole right to issue banknotes in Austria.
As a late consequence of the Ausgleich (compromise) between Austria and Hungary, which transformed the empire into a dual monarchy, the former National-Bank was turned into the “Oesterreichisch-ungarische Bank” in 1878.
After World War I, the “Oesterreichisch-ungarische Bank” had to be liquidated under the Peace Treaty of Saint-Germain-en-Laye concluded in 1919.
From the First Republic…
The Oesterreichische Nationalbank (OeNB) was established by two federal acts in 1922 and went into operation on January 1, 1923.
The Austrian schilling was introduced on January 1, 1925, by enactment of the Schilling Conversion Act.The schilling superseded the crown, which had been introduced in 1892 and which had finally replaced the florin on January 1, 1900.The crown was converted into schillings at a ratio of 10,000 crowns to 1 schilling.
After Austria’s Anschluss to the German Reich in 1938, the German reichsmark replaced the schilling (at a conversion rate of 3 schillings to 2 reichsmarks); the OeNB’s gold and foreign exchange reserves were transferred to Berlin.According to the OeNB’s balance sheet, total gold and reserve assets amounted to 471 million schillings.The planned liquidation of the OeNB had not been completed by the time World War II ended in 1945.
… to the Second Republic
After Austria had been reestablished on April 27, 1945, the OeNB also resumed operation.The Central Bank Transition Act of July 3, 1945, provided its provisional legal basis.
The Schilling Act of November 30, 1945, reinstated the schilling (ATS) as legal tender in Austria.Reichsmark banknotes and Allied Military Currency were exchanged at a ratio of 1 to 1.However, the exchange was subject to numerous conditions and restrictions (e.g. a per capita limit of ATS 150).Additional legislation – the Currency Protection Act of November 19, 1947 – stipulated the withdrawal of the banknotes introduced in1945 and their exchange for new schilling banknotes at a ratio of 3 to 1. In order to absorb excess liquidity, only ATS 150 per person were exchanged at parity.It took until the mid-1950s, however, for the stabilization of the schilling currency to be completed successfully.
In 1955, the year the Austrian State Treaty was signed, the Austrian Parliament adopted the Nationalbank Act.The act was repromulgated in 1984 as the Federal Act on the Oesterreichische Nationalbank (Nationalbankgesetz 1984 – NBG) and is the current legal basis of the OeNB’s operations as amended by Federal Law Gazette I No. 60/1998, which adapted Austrian central banking legislation to the provisions of the Treaty establishing the European Community.
On January 1, 1999, the beginning of Stage Three of Economic and Monetary Union (EMU), Austria and ten other EU Member States introduced the euro as the single currency. At the same time the euro conversion rate for Austria was irrevocably fixed at EUR 1 = ATS 13.7603. The OeNB’s responsibility for monetary policy was transferred to the European Central Bank (ECB).Monetary policy decisions for the euro area are now taken by the Governing Council of the ECB.in which the OeNB is represented.
The European System of Central Banks (ESCB)
is composed of the European Central Bank (ECB) and the national central banks (NCBs) of all EU Member States.The OeNB is an integral part of the European System of Central Banks (ESCB).
The Eurosystem
comprises the ECB and the NCBs of those Member States which have adopted the euro (i.e. the participating Member States).The term “Eurosystem” was adopted as a short designation for the central banking system of the euro area.The terms “Eurosystem” and “participating Member States” may be used synonymously to denote the group of euro area Member States.
1753
Florin currency (Convention coin, 11.69 g fine silver): 1 florin Convention coin = 60 kreuzer
1762
The Municipal Bank of Vienna (Wiener Stadt-Banco) issues “Banco-Zettel”
1811
“Bankruptcy Patent” (devaluation of the Banco-Zettel at a ratio of 1 : 5)
1816
The “privilegirte oesterreichische National-Bank,” is founded; it is structured as a private stock corporation
1857
Florin currency (Austrian currency, 11.11 g fine silver): 1 florin Austrian currency = 100 kreuzer
1878
The “privilegirte oesterreichische National-Bank” is transformed into the “Oesterreichisch-ungarische Bank,” the central bank of the Austro-Hungarian monarchy
1892
Crown currency (1 florin = 2 crowns, 0.304878 g fine gold): 1 crown = 100 hellers
1914
The Statute of the “Oesterreichisch-ungarische Bank” is partially annulled
1918
War bonds are issued and the printing press is cranked up to finance World War I
1919
The “Oesterreichisch-ungarische Bank” is liquidated under the provisions of the Treaty of St. Germain-en-Laye
1922
Inflation peaks
The currency is stabilized with the support of a loan from the League of Nations
The OeNB goes into operation on January 1, 1923
1925
Schilling currency (10,000 crowns = 1 schilling, 0.21172086 g fine gold): 1 schilling = 100 groschen
1931
The Credit-Anstalt crisis expands into a currency crisis
Anschluss to the German Reich; the German reichsmark replaces the Austrian schilling (1 reichsmark = 1.50 schillings)
1945
Central Bank Transition Act: reestablishment of the OeNB
Schilling currency (1 schilling = 1 German reichsmark, per capita exchange allowance of 150 schillings)
1946
The Foreign Exchange Act assigns responsibility for exchange controls to the OeNB with a fixed exchange rate of USD 1 = ATS 10
1947
Currency Protection Act (final absorption of excess liquidity by exchanging old for new schillings at a ratio of 3 : 1)
1953
USD 1 = ATS 26
1955
Federal Act on the Oesterreichische Nationalbank (Nationalbankgesetz – NBG)
1959
The schilling is made freely convertible (for nonresidents)
1971
The Bretton Woods system of fixed exchange rates begins to break down; the schilling is revalued
1973
End of the Bretton Woods system (end of the gold convertibility of the U.S. dollar); the schilling is pegged to a basket of currencies (exchange rate indicator)
1976
Transition to a stronger orientation toward the Deutsche mark
1979
The European Monetary System (EMS) is established
1980
The hard currency policy and its stability-oriented exchange rate policy based on the peg of the Austrian schilling to the Deutsche mark is introduced
1988
The Coinage Act (foundation of Münze Österreich AG) is adopted
1991
Cross-border capital movements are liberalized completely
1995
Austria becomes a member of the European Union (EU)
The OeNB participates in the EMS and its exchange rate mechanism
1998
April: The Federal Act on the Oesterreichische Nationalbank is amended to establish the legal prerequisites for Austria to participate in Stage Three of EMU
May: The Council of the European Union – in the composition of heads of state or government – decides that 11 EU Member States qualify for the introduction of the euro as the single currency on January 1, 1999
June: the ECB and the ESCB are founded
1999
Stage Three of EMU begins on January 1, 1999, with the introduction of the euro as the single currency in Austria and ten other EU Member States (Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain)
2000
The Euro Act is adopted and the 1988 Coinage Act is amended with a view to the introduction of euro banknotes and coins on January 1, 2002
2001
Greece introduces the euro on January 1, 2001
2002
Euro cash becomes legal tender in Belgium, Germany, Ireland, Greece, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland on January 1, 2002