Bank that directs and coordinates the operation of the entire financial system of a country. It defines and executes monetary policy, issues currency, maintains the country’s reserves, and controls the movement of capital with the outside. It acts as a bank of banks, lender of last resort for financial inflows, and the banks of a territory maintain their reserves and mandatory coefficients in it. It acts as the Treasury bank for all purposes and acts as a regulator of the financial system.
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