what is forex: what is forex

Central Banks

What are Central Banks

Central Banks are authorized banks by governments to regulate the domestic economy and to implement their monetary policies. Central Banks are controlling macroeconomic issues such is the level of interest rates, inflation, unemployment, trade and the level of the domestic money supply.

What is Fed (Federal Reserve)

Fed is the US regulatory body / Central Bank which is responsible to control the economy and implement the federal monetary policy.

What is the European Central Bank (ECB)

European Central Bank is the regulatory body of European Union responsible to regulate monetary policy in the economic zone of euro.

What is the Bundesbank

Bundesbank is the Central Bank of Germany. As Germany is a member of eurozone, Bundesbank is coordinated with the policies of European Central Bank (ECB).

What is the Bank of Canada (BOC)

Bank of Canada is the Central Bank of Canada responsible for the Canadian monetary policy.

What is the Bank of England (BOE)

Bank of England is the Central Bank of England responsible forUK monetary policy.

What is the Bank of Japan (BOJ)

Bank of Japan is the Central Bank of Japan responsible for Japanese monetary policy.

General Related Terms

What is Interest

Interest is paid when borrowed money is used.

What is a Bank Rate

A Bank rate is the interest rate charged by the central bank of a particular country when it lends capital to the domestic commercial banks. It is used by central banks as a tool to control money supply in the economy and focus either on inflation or either on unemployment.

What are the Interbank Rates

Interbank rates are set by large international banks in order to lend capital to other international banks.

What is a Hard-Currency Policy

A monetary policy imposed by a Central Bank that aims in domestic currency appreciation is called “a hard-currency policy”.

What is a Flexible Currency Policy

A monetary policy imposed by a Central Bank that aims in domestic currency depreciation is called “a flexible-currency policy”.

what is forex

Central Banks

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