Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold price tests a multi-month low on a stronger USD

News

Micron shares slide despite upbeat results

News

Will gold hold or fold?

News

Costco shares slide despite earnings beat

News

Crude oil becomes volatile as Russia relaxes ban

News

Where could the bulls save the S&P 500?

Trends & Analysis
News

Gold price tests a multi-month low on a stronger USD

News

Micron shares slide despite upbeat results

News

Will gold hold or fold?

News

Costco shares slide despite earnings beat

News

Crude oil becomes volatile as Russia relaxes ban

News

Where could the bulls save the S&P 500?


Account
New to ADSS? Open an
account now to get started.
Open an account Login

Central bank definition

A central bank is a financial institution that manages a country’s currency issuance, money supply, and banking system. It is responsible for implementing monetary policies to promote economic stability and growth, and central banks can utilise several tools such as interest rate adjustments, quantitative easing, and open market operations to achieve their objectives. Their decisions can influence the value of a country’s currency, as well as the cost of borrowing and lending.

In times of financial crises, central banks can also act as lenders to provide liquidity to the financial system or intervene in financial markets by buying or selling assets such as government bonds, stocks, and foreign currencies. This can help financial systems maintain stability.

 

The role of central banks in the forex market

Central banks play a significant role in shaping the forex market. They are responsible for managing the money supply of their respective countries and regions, which means their actions can have a big impact on the value of the currencies they issue.

If a central bank decides to increase interest rates, it can make its currency more attractive to investors. This may increase global demand for the currency, which may lead to an appreciation of its value. Conversely, if the central bank decides to decrease interest rates, it can make the currency less attractive to investors. This may decrease the global demand for the currency, which may lead to a depreciation of its value.

As one of the most important participants in the forex market, central banks can also directly intervene by buying or selling their own currencies to influence their value. This is typically done in extreme cases to counteract the effects of other economic factors, such as political instability.

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

See all glossary trading terms


Site by Pink Green
© ADSS 2023


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.