Central Bank

Reuters  Oct 2  Comment 
Flanked by interest rate decisions in Britain, Japan and Australia, the IMF's annual meeting in Lima takes centre stage in the calendar next week, with policymakers focussing on China's economic slide and its impact on the rest of the world.
Yahoo  Oct 1  Comment 
WASHINGTON/FRANKFURT (Reuters) - Central bankers who led the charge to pull the global economy from a cliff during the financial crisis now risk becoming bit players, ill-equipped to snap the world out of sluggish growth and its addiction to cheap...
newratings.com  Sep 30  Comment 
JAKARTA (dpa-AFX) - Iceland central bank left its interest rates unchanged on Wednesday, after hiking them for two sessions in a row, but signaled that rates may be raised further if inflation rises due to wage settlements. The Monetary Policy...
newratings.com  Sep 30  Comment 
BUCHAREST (dpa-AFX) - Romania's central bank left key interest rates unchanged at a record low again, on Wednesday. The Board of the National Bank of Romania kept the monetary policy rate unchanged at 1.75 percent. Policymakers also...
The Hindu Business Line  Sep 30  Comment 
Indonesia's central bank unveiled on Wednesday a set of measures intended to stabilise the country's beleaguered currency, which tumbled to its lowest levels since 1998 in the third quarter. ...
The Hindu Business Line  Sep 29  Comment 
China’s yuan inched up against the dollar on Tuesday after the central bank set a firmer midpoint and was also suspected of selling dollars via state banks to support the Chinese currency, traders...
Financial Times  Sep 28  Comment 
The CBC is under pressure to promote growth but has few options
The Hindu Business Line  Sep 25  Comment 
China’s money rates fell slightly on Friday but were almost flat for the week, after the central bank injected funds into the market to help banks offset liquidity demands ahead of the long holida...
The Economic Times  Sep 24  Comment 
China's yuan firmed on Thursday as state-owned banks sold dollars on behalf of the central bank, offsetting a slightly weaker official guidance rate.
Reuters  Sep 24  Comment 
Sri Lanka's central bank is expected to keep its policy interest rates unchanged at record lows on Friday, a Reuters poll found.



Central banks have emerged over the past four centuries when mankind moved from a system of gold or silver backed currencies to private issuers to fiat money. The first central bank in the world was the Swedish Riksbank, founded in 1668.

Scottish businessman William Paterson founded the Bank of England in 1694 on request of the British government to finance a war.

The First Bank of the USA was founded in 1791 and had a 20-year charter. It was however revived again in 1816 and gave birth to the Second Bank of the United States. This desperate move to stabilize the currency by US president James Madison was later revoked by US president Andrew Jackson who withdrew the bank's Federal Charter in 1836. In 1841 the Second Bank of the United States ceased all operations.

The history of central banking came alive again in 1913 with the constitutionally disputed foundation of the Federal Reserve.

As nearly all currencies in the world have transformed into fiat money over the past 4 centuries, i.e. the notes mandated to be used by government fiat, all countries have some sort of central bank that is responsible for keeping inflation low and provide a money supply that does not overshoot economic growth too much. Other tasks vary widely from country to country.

Political pressure has often led to inflation as rulers want to finance their activities with the in the first place seemingly cheap money.Image:Example.jpg

Central Banking

Central banks primarily purchase short-term debt issued by the governments of the countries in which they serve. Sometimes they've been used as a political piggy bank with the central banks buying riskier investments causing huge losses and inflation if the bank's government doesn't bail them out since the bank has no assets to sell to counter inflation, leaving to many banknotes in circulation.


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki