The central bank is a Public financial institution, the highest authority on monetary matters, which exists in a large part of the countries of our planet and which among its various and important functions has the mission of issuing legal money, designing and executing monetary policy.
Generally, in all countries it is an entity that enjoys autonomy and independence with respect to the government of the day, although it is impossible to ignore that its directors and officers are also appointed by the executive powers, which is why they tend to respond to government policies.
The value of the currency, the stability of prices and the stability of the financial system are three essential issues that the central bank must address and it is because of this situation that the central bank stands as a key piece in the economy of any country.
Unlike what happens with any other public or private financial institution, the Central Bank does not have individual persons or companies as clients, but rather the state, and on the other hand, the banks that operate in the Bank's territory. Central, whether private or public. As for the methodology that it displays, it does not differ too much from that presented by any bank, since the Central Bank accepts the deposits that come from its clients and keeps them in accounts that it will open to them and it is through these accounts that they Central Bank clients carry out their transactions.
On the other hand, the Central Bank is also authorized to grant loans to client banks that have liquidity problems and also to other nations that need it.
In addition, the Central Bank is in charge of ensuring the country's reserves that it jealously guards in its coffers.
It should be noted that in order to operate in the indicated manner, the Central Bank issues legal tender money and is the only financial organization capable of doing so. Meanwhile, he will entrust the Mint the manufacture of banknotes and coins that will later be distributed among the banks of the commercial circuit.
