Objectives of Monetary Control by the Central Bank


This is an institution established by the government of that country to manage and control the supply of and demand for money in a country’s economy.

It can also be defined as the highest institution in a country’s banking system which regulates and controls the economy financial activity to ensure stability and prosperity.

Objectives of Monetary Control by the Central Bank

  • Facilitate rapid and steady economic growth.
  • Create full
  • Stabilize prices of commodities
  • Ensure balanced development.
  • Enhance equilibrium in balance of payments.
  • Foreign Exchange rate stability.
  • Moop out excess liquidity
  • Control business cycles.
  • Intrest rate stability.
  • Financial market stability.

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