Central Bank

An institution managing a state's currency and monetary policy.

Detailed Definition

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates (e.g., the Federal Reserve in the US or the ECB in Europe).

Related in Forex

Interest Rate

The amount charged by a lender for borrowing money.

Fixed Exchange Rate

A currency's value matched to another currency or asset.

Quantitative Easing (QE)

Central bank purchasing of securities to increase money supply.