Four main functions of the Central Bank:
(i) Monetary policy: The central bank is responsible for implementing and managing the country's monetary policy, which includes setting interest rates and controlling the money supply in order to achieve economic goals such as low inflation and stable growth.
(ii) Financial stability: The central bank plays a critical role in maintaining financial stability by regulating and supervising the financial system, including banks and other financial institutions. This helps to reduce the risk of financial crises and ensure that the financial system is able to support economic growth.
(iii) Payment and settlement systems: The central bank is responsible for overseeing and maintaining the payment and settlement systems that enable the transfer of funds between banks and other financial institutions. This helps to ensure the smooth functioning of the financial system and the economy as a whole.
(iv) Currency issuance: The central bank is responsible for issuing and regulating the supply of the country's currency. This includes the design and production of paper money and coins, as well as the maintenance of sufficient reserves to meet the demand for currency.