The Role of Central Bank in the Foreign Exchange Market

Smithjames00126 Jun, 2025Business

The role of central bank in the foreign exchange market is crucial for maintaining currency stability and economic balance. Central banks intervene by adjusting interest rates, managing foreign reserves, and implementing monetary policies. These actions influence exchange rates, control inflation, and ensure financial stability. Understanding the central bank’s role in the foreign exchange market helps traders anticipate market trends and make informed decisions for optimal trading strategies.