The aim of the study is to expound the creation and functioning of the Economic Department of the Reich Protector's Office as a body playing the dominant role in the process of formation of the economic policy in the Protectorate of Bohemia and Moravia, and to shed light on its penetration into the autonomous occupation administration that took place as part of Heydrich's reform of public administration. The focus of attention is on the status of the Economic Department on the boundary between the Reich German administration and the Protectorate administration, its organisational and personnel structure, competences, and financing mechanism.