Central banks of the world

mr.traderSeptember 8, 2023

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Influence of Central Banks on Financial Markets

At present, central banks of the world are a powerful instrument of monetary regulation. This function has a default effect on fluctuations of asset prices in financial markets. Changes in policy of any central bank, the economy of which has a noticeable weight in the scale of the world economy, lead to corresponding, quite abnormal reactions of financial markets. U.S. Federal Reserve: lords of dollars The most influential in this matter, of course, is the U.S. Federal Reserve System - FED (Federal Reserve System). The FED is completely independent in its economic policy decisions. When the chairman of the FED makes a speech, the markets react very strongly to his statements, especially when it comes to changes in interest rates. The ECB: the benchmark...

mr.traderSeptember 6, 2023

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Goals, Objectives, and Functions of Central Banks of the World

Referring to the history of the development of the Central Banks of the world (CB) and their current status in the market system, their main activities are reduced to the following objectives: ensuring the stability of the national currency and purchasing power; ensuring the liquidity of the banking system; providing an effective algorithm for uninterrupted conduct of all types of settlements. The Central Bank is the "bank of banks" In order to achieve the above-mentioned goals, it is necessary to solve a number of tasks, the fulfillment of which makes the Central Bank the "bank of banks" and the main financial center of the country: being the issuing center of the country, the Central Bank solves the problem of organization of issue and circulation of cash banknotes; almost all its operations the Central banks of the world perform with local banks of a particular country, but not with commercial and industrial clients; keeping of class reserves...

mr.traderAugust 30, 2023

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History of the emergence of central banks

At the very first stages of the development of the economic industry there were no limits between the issuing and commercial banks, but due to the improvement of its structure the system acquired such a need - the need to centralize the bank issue, the need to organize the monopoly right to issue banknotes and conduct a paramount credit and monetary policy within the state. The real world needed it, that is why the system of central banks of the world was organized which are the main link of global monetary system. The emergence of central banks - history and necessity The level and nature of the scheme of development of market relations determine the very basic role of a central bank in the modern economic system. At a time when the gold standard was the dominant currency, banks were the...

mr.traderApril 30, 2022

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Reserve Bank of New Zealand (RBNZ, Reserve Bank of New Zealand)

The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand, which regulates the financial and monetary policy of the country and is responsible for the stability of the New Zealand dollar in accordance with the national interest. The RBNZ's functions and tasks New Zealand's financial regulator was established under the Reserve Bank of New Zealand Act on August 1, 1934. Since 1936 the RBNZ has been the property of the government. In 1985, the New Zealand dollar, after obtaining the status of a free currency, entered into free circulation in the international foreign exchange market. Despite this, its exchange rate is still controlled by the government in order to avoid sharp exchange rate fluctuations. As well as most ...

mr.traderMarch 6, 2022

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U.S. Federal Reserve System (Fed, Federal Reserve)

The U.S. Federal Reserve (Federal Reserve System, Federal Reserve) is the U.S. central bank, whose decisions may affect not only the U.S. economy, but the world as a whole. The explanation is simple: it is the Fed that issues the dollar USD, which remains the reserve currency and retains its paramount importance in the planetary scale. This is why the Federal Reserve gets a lot of criticism and advice on monetary policy and economic management from all over the world. History, Functions and Heads of the U.S. Federal Reserve One of the main differences between the U.S. Federal Reserve System and central banks from other countries is its independence from the government. In some ways, the Fed is controlled by Congress, which...

mr.traderNovember 20, 2021

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National Bank of the Republic of Belarus (NBRB)

The National Bank of the Republic of Belarus (NBRB) is the central bank as well as a state body of the Republic of Belarus. It acts to ensure and develop reliable and efficient functioning of the payment and banking system of Belarus, to ensure and protect the stability of the Belarusian ruble, and acts exclusively in the interests of the country. It is located in Minsk, the capital of the country. History of the NBRB The bank was founded by the Council of People's Commissars in 1922 as the Belarusian Republican Bank. Soon it became subordinated to the State Bank of the USSR. The bank was reorganized in 1959 and 1987, and in its present form it appeared in 1990. Functions of the National Bank of the Republic of Belarus In the process of accomplishing its tasks, the NBRB performs three main...

mr.traderSeptember 13, 2021

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A test of knowledge of the world's central banks

Here are 5 questions, the answers to which will show your knowledge of how Central Banks work in the world. Central bank decisions always have a strong effect on national currency rates, so this knowledge will be very useful if you plan to trade profitably. At the end of the test, there are the answers. If you have noticed your mistake, do not hesitate to follow this link and close your knowledge gap. 1. The largest foreign exchange reserves in the world are... a) U.S. Federal Reserve System; b) European Central Bank; c) People's Bank of China; d) International Monetary Fund. 2. The slang name "The Old Lady" is... a) The Reserve Bank of Australia; b) The Swiss National Bank; c) The Bank of...

mr.traderAugust 19, 2021

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National Bank of Ukraine (NBU)

National Bank of Ukraine (NBU, Ukr. National Bank of Ukraine) is the central bank of the country. NBU is a legal entity, state-owned and has a registered capital of 10 million hryvnia. The main function of the NBU is to maintain the stability of the national currency - the Ukrainian hryvnia, as well as price stability and banking system, within the allotted powers. History of the National Bank of Ukraine The starting point for the establishment of the NBU was the law "On Banks and Banking Activity" adopted by the Verkhovna Rada of Ukraine on March 20, 1991. The basis of the NBU was its predecessor - the Ukrainian Republican Bank of the State Bank of the USSR. In the nineties of the last century Ukraine faced a complete inadequacy of the financial system to the market conditions, as well as monstrous inflation, which...

mr.traderAugust 8, 2021

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People's Bank of China (PBOC)

The People's Bank of China (NBK, Bank of China) (Chinese tr. 中國人民銀行, 中中国人民银行, Pinyin: Zhōngguó Rénmín Yínháng, Pall: Zhongguo Rénmín Yínháng) is the central bank of the PRC. The Bank of China reportedly has the largest foreign exchange reserves in the world, exceeding 3.2 trillion U.S. dollars. History of the People's Bank of China The People's Bank of China was the result of the merger and nationalization of three major commercial banks in 1947: Huabei Bank, Beihai Bank and Xibei Agricultural Bank. Because of the civil war, the headquarters of the NBK was located in Shijiazhuang and was not moved to Beijing until 1949. From 1949 to 1978, the Bank of China was the only bank in the country. To the sphere...

mr.traderMay 10, 2021

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Swiss National Bank (SNB)

The Swiss National Bank (SNB) began its work by opening representative offices in the five cities of Basel, Bern, Geneva, St. Gallen and Zurich. In 1903 the government's national advisor, Scherrer-Fuller, proposed a bill to establish a central bank of its own in Switzerland. A federal law on the National Bank was passed on October 6, 1905, and took effect on January 16, 1906. June 20, 1907. It is now also active in Lausanne, Lugano and Lucerne. According to the Swiss Federal Banking Act, the Swiss central bank is a joint-stock company with a special constitution and its functions are regulated by special...

mr.traderApril 18, 2021

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Bank of Canada (BoC)

The Bank of Canada is probably the only central bank in the world whose monetary policy is as open and understandable to all market participants as possible, and has a number of other features that make it fundamentally different from its global "counterparts". History of the Bank of Canada The Bank of Canada was founded in 1934 as a private corporation, but within four years it became a Crown corporation and was transferred to the government. Unlike other government agencies, the governor of the bank and a senior manager are directly appointed by the bank. Although the Bank of Canada is run through the government, it is ultimately owned by the people. Because of the advanced economic relationship between Canada...

mr.traderFebruary 24, 2021

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Bank of Japan (BoJ)

The Bank of Japan (BoJ) is the central bank of Japan established to regulate the yen exchange rate and to conduct and oversee the country's monetary and financial policies. The Japanese banking system was established in 1873 under the National Bank Act, similar to a similar law that had been passed in the United States in 1863. By 1870 the Japanese banking system included more than 150 banks. The rapid growth of the banks and the lack of emission controls caused a high rate of inflation. In order to avoid a crisis in the economy, the Bank of Japan was established in 1882. The structure and tasks of the Bank of Japan The functions of the supreme body...

mr.traderFebruary 24, 2021

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Central Bank of Russia (Central Bank, CBRF)

The Central Bank of Russia (Central Bank of Russia, Bank of Russia, CBR) is the most powerful center of Russia's credit system. It plays a key role in the national economy. At the moment, the actions of the Bank of Russia are becoming increasingly important. Stability and further growth of economy, as well as strengthening of national positions on the international level depend on the effectiveness of its functions and correctness of chosen methods. History of the emergence of the Central Bank of Russia The banking and credit system in Russia dates back to 1733, when the Monetary Office, opened by decree of Peter the Great, was reorganized into the Monetary Chancery, whose functions included granting loans at 81,200 euros per annum and secured by gold...

mr.traderJanuary 22, 2021

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European Central Bank (ECB)

The European Central Bank (ECB) is the central bank of the Eurozone and the currency regulator that monitors the monetary policy of the region and controls the stability of the euro. Traders wait for its decisions every first Thursday of the month, as it has a great influence on EUR and other major currencies rates in the currency market. History and objectives of the ECB The ECB was founded on June 1, 1998, becoming the logical conclusion of a long negotiation of European officials, who in the second half of the XX century sought continental unification at the financial level. In fact, the Central Bank of Europe had already existed for four years by then, bearing the name...