Forex Central Banks

Forex Central BanksCentral banks are major participants in the foreign exchange market, although the reasons forthey are not speculative. The main objective of central banks is to control and regulateamount of money offered in a nation to achieve its economic objectives. A bankCentral may intervene in the currency market for the following reasons:· To gain stability in the exchange rate and prices· To protect certain levels of the exchange rate and inflation· When the main economic objectives are to be achieved.Some central banks are more conservative than others, some regularly involved(As the Bank of Japan *) and not so often as the Federal Reserve (bankCentral America).The major central banks are:

1. Federal Reserve US
2. The Bank of Japan
3. The Bank of England
4. The European Central Bank
5. The Central Bank of Canada
6. The Swiss National Bank

* The Japanese central bank used to intervene much in the past, but not recentlythere has been much intervention.