Central Bank Influence
The Central Bank Has Influenced On Forex
Influential Central Bank On Forex
Interest rate reports from central banks have a direct effect on the currency exchange rate. That makes the central bank have an influence on the forex market. Here are the biggest central banks in the world that have a strong influence on forex:
1. The Federal Reserve (FED)
Aims to maintain long-term price stability and economic growth of the United States. The FED is the strongest central bank in the world that has a huge impact on the value of currencies in many countries.
2. European Central Bank (ECB)
Aims to maintain annual growth at 2% of the consumer price, and to prevent excessive currency strengths to avoid risking exports, as European zone economies depend on exports.
3. Bank of England (BOE)
Aims to maintain monetary and financial stability, and have an inflation target of 2%.
4. Bank of Japan (BOJ)
Aims to maintain price stability, ensure the stability of the financial system and prevent currency appreciation due to Japanese export dependence.
5. Swiss National Bank (SNB)
It is the Swiss central bank established in 1907 and has a role as a decision maker only in the range of interest rates.
6. Bank of Canada (BOC)
It is a Canadian state central bank that began to be active in 1935. Aims to maintain the integrity and value of the currencies, having an inflation target of 1-3%.
7. The Reserve Bank of Australia (RBA)
Aiming to maintain monetary stability, keeping the unemployment rate and economic growth, holding inflation of 2-3% per year.
8. The Reserve Bank of New Zealand (RBZ)
It is a New Zealand state central bank established in 1934. It aims to maintain price stability and to avoid production volatility, interest rates, exchange rates, and inflation targets of1.5%.