Forex trading Central Banks

Forex trading Central Banks

In most countries the central bank is charged with the responsibility of maintaining the external value of domestic currency. If a country is a system of fixed exchange rates, central bank must take the necessary steps to maintain parity, or rate so fixed. Even under floating exchange rate system, the central bank must ensure orderliness in the movement of exchange rates. Generally, this is achieved by the intervention of the bank. Sometimes it becomes a concentrated effort by central banks of more than one country.