The Central Bank plays a critical role in a country’s financial and economic system. It is the main authority responsible for regulating and supervising the banking sector, implementing monetary policy, and maintaining financial stability. The Central Bank controls the money supply and interest rates to achieve economic goals such as controlling inflation, supporting employment, and fostering sustainable economic growth. Additionally, it acts as a lender of last resort to financial institutions in times of crisis, manages the country’s foreign reserves, and oversees the issuance of the national currency. Through these functions, the Central Bank helps ensure confidence in the financial system and promotes the overall health of the economy.
Main Functions of the Central Bank
- Monetary Policy Implementation
Regulates money supply and interest rates to control inflation, stabilize exchange rates, and promote economic growth. - Currency Issuance
Sole authority to issue and manage the national currency in circulation. - Lender of Last Resort
Provides emergency liquidity support to financial institutions facing difficulties to maintain system stability. - Bank Regulation and Supervision
Ensures the safe and sound operation of commercial banks and financial organizations. - Maintaining Financial Stability
Prevents and manages systemic risks to protect the stability of financial markets. - Foreign Exchange Reserve Management
Holds and manages foreign currency reserves and intervenes in the forex market when necessary. - Government’s Banker
Manages government financial transactions, public debt issuance, and administration. - Credit Control
Coordinates credit volume and capital costs to foster balanced economic development.
THE ETERNAL SOVEREIGN 