- conducts the monetary policy operations of the Eurosystem in Estonia;
- manages the foreign exchange reserves and other financial assets of Eesti Pank;
- participates in managing the foreign exchange reserves of the European Central Bank.
The Financial Markets Department is responsible for conducting the monetary policy operations of the Eurosystem (the European Central bank plus the national central banks of the euro area) and for managing the reserves of Eesti Pank. While the monetary policy decisions of the Eurosystem are taken by the Governing Council of the European Central Bank, the monetary policy operations are conducted decentrally by national central banks. Revenues from taking moderate risks in financial asset management cover the expenses of the day-to-day running of the central bank. A part of the revenues is also allocated for reserves and the state budget.
The Head of the Financial Markets Department is Fabio Filipozzi.
The Financial Markets Department has two divisions.
The Investment Division invests the financial assets of Eesti Pank and monitors financial markets, and jointly with the Bank of Finland it participates in managing the reserves of the European Central Bank. If necessary, the division carries out securities transactions within Eurosystem joint programmes. The Head of the Division is Viljar Vald and there are four more employees in the division.
The Risk Management Division manages risks related to investment activities, analyses the results of investments, and prepares reports on them. It also assesses the eligibility and value of the assets provided as collateral for monetary policy transactions by the banks operating in Estonia. The Head of the Division and Risk Manager is Kaari Kumari and there are four more employees in the division.