Central Banks

The Central Bank is defined as the treasury of the country at first glance. While the state plays its primary role as a currency boom, it has substantially more important functions under modern market conditions.


Price stability in the first place; Namely the fight against inflation, the printing of money, the government’s arrangement of borrowing resources, repaying debts, being a bridge to the bank, protecting the value of the national currency, managing gold and foreign exchange reserves, regulating the exchange rate regime and many other important tasks. It holds.
The Central Banks can use a variety of tools to exercise their authority to exercise their duties. They are mainly aimed at keeping the movement of prices under control by reducing and raising the money supply in the market and regulating interest rates. The structure, politics, tools in the literature of the institution is a scientific subject in itself. Because the intervention in free market economies is the most important authority that gives net results and is an indispensable observer of every economy.
The most central central bank that deals with Forex markets is the Federal Reserve System (FED). Since 1971, it has been inevitable for the exchange rate to fluctuate over the world economy.
In 1907, as a result of a major economic depression that shook the United States Banking System, the December 3, 1913 reform was carried out and the Federal Reserve System was born. The Federal Reserve System, the central bank of the United States, was founded by the American Congress to provide a safe, highly flexible and more stable monetary and financial system for the American Nation. In this system, consisting of 12 Federal Reserve Banks each of which has a restricted working area, all national banks are bound to the Federal Reserve System and deposits part of their demand deposits in the Federal Reserve Bank in their territory.
The Fed chairman is Ben BERNANKE. The FED takes decisions about changes to interest rates at the FOMC-Federal Open Market Committee meetings for a period of 2 days (Monday and Tuesday) held every 6 weeks. Essential analysts follow the results of this meeting, which can affect the USD and thus a lot of parity. However, within the current economic conditions, the FED’s views on political developments can be influential enough to change the trend. For this reason, all statements of Bernanke are carefully monitored. Because the institution behind it has the influence of directing the future of the vision and the power market. So much so that Bernanke can still observe that the markets are moving as he begins to talk about any statement. For this reason, all economists carefully watch the FED’s assessments.
Apart from the USD, which is another important currency, the ECB is the European Central Bank (ECB). Founded on June 1, 1998, the bank is headquartered in Frankfurt, Germany. Since 1 November 2011, the Italian economist Mario Draghi has been chairing the presidency. The ECB is responsible for managing the common currency of the 17 member states of the European Union. There are independent management structures and rules from all countries.
As predicted, the ECB’s interest rate announcements like the FED and the EUR region are of great importance. ECB interest rate decisions are usually published on a monthly basis and are followed closely by key analyst followers. However, speculative explanations made in order to give direction to money under the developing economic conditions can also be viewed as highly preliminary evaluations.



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