Central banks play an important role in guiding the forces of supply and demand for a country’s currency on the forex market. Their monetary policy statements, interest rate decisions, and ability to intervene in the forex market should make every trader pay close attention to their actions. Central banks are also tasked with controlling the money supply of a nation’s currency, which directly affects supply and demand. Low supply and high demand tend to increase the value of a nation’s currency, whereas high supply and low demand will devalue it. Balancing growth with inflation is the typical goal of central bank policies. Central banks may also change their overnight lending rates as a tool against inflationary pressures. The interest rate set by a central bank can influence the value of a currency based on yield. The higher the central bank rate, the higher becomes the yield for holding that currency, influencing demand.
Table 1.1 lists the central banks and their Internet addresses for major currencies traded on the forex market.
TABLE 1.1 Central Banks around the World
Table 1.1 lists the central banks and their Internet addresses for major currencies traded on the forex market.
TABLE 1.1 Central Banks around the World
