The main function of central banks is to manage the foreign reserves of the country. In each country, the central bank artificially control the exchange rate in the country by controlling its volume in the market. If necessary, the bank may throw some reserve currency in the market to reduce its rate or removed and placed in reserve in order to improve it.
The second important function of central banks - the settlement of interest rates on deposits in local currency.
In each country, the bank establishes a framework for investors in order to prevent abrupt changes in the national currency in relation to other states. In world currency markets, such changes controls the "Federal Reserve System» (US Federal Reserve), performing the function of the global central bank. Falls and jumps in such currencies as the Euro Central Bank prevents the EU (European Central Bank) and the British central bank (Old Lady). Often, such controls are foreign companies that offer products and services in foreign currency (import / export). Such organizations usually have no access to international currency markets, because of which they have direct access to local commercial banks to conduct foreign exchange currency transactions, which in turn control the central banks. Central banks do not work with individuals, for that there are a huge number of commercial banks offering a huge range of services for loans and deposits. Central Bank following the situation in general, prevent a global catastrophe that could damage the global economy.
The second important function of central banks - the settlement of interest rates on deposits in local currency.
In each country, the bank establishes a framework for investors in order to prevent abrupt changes in the national currency in relation to other states. In world currency markets, such changes controls the "Federal Reserve System» (US Federal Reserve), performing the function of the global central bank. Falls and jumps in such currencies as the Euro Central Bank prevents the EU (European Central Bank) and the British central bank (Old Lady). Often, such controls are foreign companies that offer products and services in foreign currency (import / export). Such organizations usually have no access to international currency markets, because of which they have direct access to local commercial banks to conduct foreign exchange currency transactions, which in turn control the central banks. Central banks do not work with individuals, for that there are a huge number of commercial banks offering a huge range of services for loans and deposits. Central Bank following the situation in general, prevent a global catastrophe that could damage the global economy.
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