Central Bank - Activities and Responsibilities

Activities and Responsibilities

Functions of a central bank may include:

  • implementing monetary policies.
  • determining Interest rates
  • controlling the nation's entire money supply
  • the Government's banker and the bankers' bank ("lender of last resort")
  • managing the country's foreign exchange and gold reserves and the Government's stock register
  • regulating and supervising the banking industry
  • setting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms

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