What is the role of central banks in global markets?

Central banks play a crucial role in global markets. They are responsible for implementing monetary policy and regulating the money supply within their respective countries, which can have a significant impact on the value of currencies and the overall performance of markets. Central banks also provide liquidity to financial institutions during times of crisis, which can help stabilize markets. Additionally, they are often involved in setting interest rates, which can influence borrowing costs and investment decisions. Because of the important role central banks play in the global economy, their actions and policies can have significant effects on global markets.