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A central bank, reserve bank, or monetary authority is a banking institution granted the exclusive privilege to lend a government its currency. Like a normal commercial bank, a central bank charges interest on the loans made to borrowers, primarily the government of whichever country the bank exists for, and to other commercial banks, typically as a 'lender of last resort'. However, a central bank is distinguished from a normal commercial bank because it has a monopoly on creating the currency of that nation, which is loaned to the government in the form of legal tender. It is a bank that can lend money to other banks in times of need. Its primary function is to provide the nation's money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. Most of the rich countries today have an "independent" central bank, that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank (ECB) and the Federal Reserve System in the United States. Some central banks are publicly owned, and others are privately owned. The United States Federal Reserve "is an unusual mixture of public and private elements". From Wikipedia under the
GNU Free Documentation License what is the relation beteween inflation and interest rate hike by central banks.? Q. I read news in general that central banks hikes bank interest rate to curb inflation. What's the logic behind that. How that hike effects the inflation. Asked by Ramesh Bollina - Fri Jun 22 10:37:33 2007 - - 2 Answers - 0 Comments A. Theoretically, the higher the rates mandated by the Central Bank for banks to borrow money should limit the amount of funds available to lend to consumers and businesses, thereby limiting the amount of money out there in the economy to chase after goods and services. It is believed that inflation occurs when too many dollars chase after these goods and services (increasing demand), which drives up prices. If there are fewer dollars in the economy, this should theoretically limit those dollars from chasing up prices. Answered by PK - Fri Jun 22 10:42:24 2007 why is the recession threatening central banks independence? Q. I would really appreciate is someone could enlighten me. Ive been told the lower interest fall the more central banks have to work with their government counterparts. Why is this though? thanks alot in advance Asked by maukie123 - Sun May 17 18:28:58 2009 - - 1 Answers - 0 Comments A. Central banks are never really independent. The US Federal Reserve has traditionally been more independent than other countries banks tho. Interest rates and money supply are the key tools they use. With the rates near zero they have effectively half ways neutered themselves. Since this leaves them weaker they need more cooperation from, or with, the government. Guess which of those two moves first? Politics is reading the latest poll numbers so there is a lot of pressure on the banks to "accommodate" which then helps lead to the next politically inspired bubble. Answered by gatzap - Sun May 17 19:25:36 2009 Would a full audit of the fed cause mass panic and undermine the central banks independence?
Q. Some economists are using this as an argument to impede an audit of the federal reserve. Is this a legitimate concern? Asked by - - Sat Oct 24 16:01:14 2009 - - 4 Answers - 0 Comments A. I hope so. People need to wake up some how! Central banks/Fed have been ripping us off since 1913 and it's time for America to wake up! Audit the fed!!! According to our Constitution we are not supposed to have a FED. Congress is supposed to regulate our monetary policy. They gave up their rights in 1913 and we as tax payers have been paying taxes for the interest that the fed charges ever since. There was no personal income tax before the federal reserve act. We are slaves to a banking cartel and it needs to stop. If it causes a panic to begin with then so be it. We need to see what they've been doing to us before our children and grandchildren are so enslaved that they can never have a life! Answered by Kathy M - Sat Oct 24 16:08:28 2009 From Yahoo Answer Search: "Central Banks"
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 businessweek.com Fri, 16 Jul 2010 04:23:15 GMT+00:00 of Japan lifts growth view, keeps rate steady BusinessWeek Japan's central bank on Thursday raised its economic growth forecast while holding its key interest rate near zero to keep borrowing ... The central bankers' burden Financial Express Japanese Yen May Strengthen Further As Risk Sentiment Falters Daily FX Japan, China, India, South Korea, Thailand: Asian Bonds, Currency Preview Bloomberg TODAYonline - BusinessWeek - BusinessWeek  online.wsj.com Thu, 24 Jun 2010 10:41:39 GMT+00:00 ; Reverses Losses Wall Street Journal The central bank set the dollar-yuan central parity rate at 6.8100, little changed from 6.8102 Wednesday. The dollar hovered in a CNY6.8130-CNY6.8145 range ... China's central bank sets weaker yuan exchange rate afp chinese central bank keeps yuan in check Independent U.S. stocks rise as China vows yuan flexibility MarketWatch New York Times - BusinessWeek - Financial Times online.wsj.com Wed, 07 Jul 2010 19:30:59 GMT+00:00 Still Wary Wall Street Journal This suggests the Brazilian Central Bank will continue unwinding last year's monetary stimulus with gradual hikes in base interest rates by year-end. ... data snap: Brazil Inflation 0.00% In June Vs 0.43% In May Wall Street Journal From Google News Search: "Central Banks"  dodjit.com 550px x 650px | 30.40kB [source page] 50 basis many are questions whether another rate cut will really help the economy After numerous rate cuts since 2007 is one or two rate cuts really going be enough to do the trick Last week three out of four central banks reduced their central rate giving the same familiar statement This time round Trichet known for his smooth approach mentioned in his minutes  investmentpostcards.com 319px x 510px | 55.60kB [source page] banks and significant injection of funds have only addressed the solvency of banks and nothing has followed through to the economy Not only is growth in money in circulation declining but the actual money supply is also shrinking  eur.news1.yimg.com 447px x 512px | 40.90kB [source page] From Yahoo Image Search: "Central Banks"  ameinfo.com unknown Mon, 26 Jul 2010 09:48:48 GM The . Central Bank. of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities has been over subscribed.  gata.org cpowell Wed, 21 Jul 2010 01:13:43 GM Interviewed by Eric King of King World News, Sprott Asset Management Chairman Eric Sprott argues that central banking's primary objective is saving big banks, that the subdued rise in the gold price is evidence of . central bank. ...  sdb-club.com ][-NooM-][ Sat, 24 Jul 2010 19:35:10 GM Bank. of Thailand revised up its growth forecast for this year in view of the robust expansion of the economy during the first half of this year. The . central. . From Google Blog Search: "Central Banks" |
Venezuela - Banco Central de Venezuela
Israel - Bank of Israel
Yemen - Central Bank of Yemen