Governments and Central Banks

Governments and central banks, such as the European Central Bank, the Bank of England, and the Federal Reserve, are regularly involved in the forex market too.

National governments

• They participate in the forex market for their operations, international trade payments & handling their foreign exchange reserves.

Central banks

• Responsible for implementing monetary policies that can move currency values.
• Adjust interest rates and control the money supply.
• There are also instances when central banks intervene, either directly or verbally, in the forex market when they want to realign exchange rates.