Central Bank
The Central Bank is the sole bank allowed to create currency, and is then loaned to the government as legal tender. A Central Bank can also be referred to in certain countries as the reserve bank, or monetary authority. The Central Bank’s role forms a vital part of the foreign exchange market. A Central Bank of any economy can take responsibility in controlling inflation, the money supply of an economy, and interest rates. A Central Bank can sometimes intervene and manipulate the Forex market as they have a wealth of reserved funds.
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