A central bank is a national institution that manages a country’s currency, money supply, and interest rates. It serves as the primary bank for both the government and commercial banks, and it acts as the lender of last resort to prevent financial collapse.

Its main responsibilities include:

• Issuing paper currency and coins.
• Setting monetary policy to manage economic growth.
• Regulating other banks through reserve ratio and capital ratio requirements.
• Maintaining price stability and keeping inflation under control.