European Central Bank

bond market, Bank of Korea enlarged the scope of eligible collateral and eligible financial institution counterparties for its open market operations. In November and December of 2008, the bank included bank debentures and certain government agency bonds for use in open market operations, which were originally only Treasury bonds, government-guaranteed bonds and Monetary Stabilization Bonds. In December, 12 more securities company were selected to join the existing 19 banks as Bank of Korea’s…

The Australian government is currently trying to deflate the value of the Australian dollar against other currencies. There are number of reasons as to why they are doing so. The decline in the Australian dollar value affects many companies positively and negatively. Once compared however there are many more winners who benefit from this decision than there are losers. In order to target a lower exchange rate the RBA is easing monetary policy The Australian dollar has appreciated strongly and…

selection is exchange rate determination and behavior/exchange rate risk management. Exchange rates of one country will be different from another country due to supply and demand. These are rates are changing everyday and are found on financial markets by banks. The exchange rate of a country is important for the country’s health and trade. Many factors can alter a country’s exchange rate, such as inflation, interest rates, account deficits, economic performance and political reasons. An…

inconvenience which causes the high US Dollar Let's imagine a currency which has a great economy behind it, the economy is doing well, the unemployment rate is at the 16-year low level, the local stock market is soaring to record highs and the central bank has hiked the interest rates thrice during last 10 months. It seems great, and it makes us believe that this currency would surge as long as there is not any great depression. At first glance, it is rather unbelievable that during the…

governor of the central bank, confirmed the devaluation would go through on Tuesday – the central bank controls exchange rate movement within a trading band. The rupee is currently trading at Rs110.39 against the dollar. The devaluation is sure to please the IMF, which in early September remarked that non-borrowed reserves – those not including IMF funds or foreign holdings of treasuries, for example: [Have] steadily declined, reflecting foreign exchange sales by the Central Bank. This policy…

economic growth and prevent runaway inflation caused market exchange system’s failure. On the basis of the needs of economic to adjusted monetary policy, is a difficult task. Central Banks are hiring hundreds of people to analyze economic data, to find the best monetary policy. Bitcoin destroyed these functions of the central bank, but turned to the simple arithmetic. Due to the autonomy of computer system, it was unable to cope with complex data, such as economic output and unemployment rate.…

and 12 regional Federal Reserve Banks located in the U.S. major cities, regulate the flow of money in the economy (Federal Reserve, 2014). The reserve has its own set of rules and regulations that must be followed. The Federal Reserve was born in 1913 (Satterthwaite, 2014). After the United States was bailed out by business mongrel J. P Morgan in 1907, country could not rely on the wealthy to bail them out each time there was a financial crisis (Federal Reserve Bank…

Problem and solution in Zimbabwe Introduction Inflation refers to rise or increase in prices and fall in the purchasing of the value of money. A problem tends to affect many countries worldwide. Among the countries that have been affected by this crisis, Zimbabwe is one of them. The problem always plunges many countries into long seasons of instability. It is one of the countries facing the problem of inflation for a longer period. The problem of inflation in Zimbabwe came because of bad…

The commonly perceived operation of a bank is fairly simply; a bank received deposits and holds them in trust The bank lends out the funds to generate income - the loanable funds model.. While this perceived intermediary role of a bank is fairly typical, it in fact does not illustrate the process and method by which banks hold deposited funds. The actual method is called Fractional reserve banking [FRB], in which banks are required to keep a fraction of the total reserves (deposits) held,…

policy. Monetary policy refers to what the Federal Reserve Bank, the United Sates central bank, does to influence the amount of money in the U.S. economy. It controls the economy by managing amount of money available. By modifying money supply and/or interest rates, aggregate demand can shift. The Federal Reserve Bank is the central bank of US, which sets the overall policies and oversees all banks. The Federal Reserve Bank has three different tools it uses to either build or slow…