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European Central Bank (ECB)
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Runs monetary policy for the twenty countries of the euro, the world’s second reserve currency.
How the ECB moves the EUR
A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a ECB decision are among the most volatile of the month for the EUR. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.
Frequently asked
What does the European Central Bank do?
Runs monetary policy for the twenty countries of the euro, the world’s second reserve currency.
Where is the European Central Bank?
The European Central Bank (ECB) is in Frankfurt, Euro area.
Why do forex traders watch the ECB?
Interest rates are the price of a currency. When the ECB raises or cuts rates — or only hints at it — money moves into or out of the EUR, and EUR/USD reacts within seconds.
Where are the ECB’s decisions published?
Official decisions, statements and the meeting calendar are published on https://www.ecb.europa.eu.
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Other central banks
SNBSwiss National Bank
Zurich / Bern, Switzerland — Guardian of the Swiss franc, the safe haven the market runs to when fear rises.
BOEBank of England
London, United Kingdom — The Old Lady of Threadneedle Street — sets UK rates and guards one of the largest gold vaults on Earth.
NORGESNorges Bank
Oslo, Norway — Runs the krone — and manages Norway’s oil fund, the largest sovereign wealth fund on Earth.
NBPNarodowy Bank Polski
Warsaw, Poland — One of the most determined gold buyers among the world’s central banks.
RIKSBANKSveriges Riksbank
Stockholm, Sweden — The oldest central bank in the world, founded in 1668.
CBRTCentral Bank of the Republic of Türkiye
Ankara, Türkiye — Fights for the lira — a lesson in what inflation does to a currency.