Role of The Central Bank In An Economy

  1. Spurring economic growth and development – investments being made by savings made by clients and others offered to businesses and individuals as loans.
  2. Currency and economic stability – it ensures that the value of a countrys currency is stable in relation to other countries currencies.
  3. Smooth operation of the money market – i.e. short term finances required by businesses by buying or selling securities and bonds
  4. Equitable development – it ensures that credit is available to all the sectors of the economy.
  5. Regulating and financing banks and other financial institutions – this ensures stability in the country’s economic environment.
  6. Regulating money supply – it plays an important role in ensuring that adequate money is available in the economy to ensure expansion of economic activities.

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