Sat 28 Jan, 2012 08:35 am
what is the central bank's role in a country's trade with other countries?
us and europe have sanctioned iran's central bank. so what is it's effects on iran?
and india wants to pay for iran's oil with gold. what would happen if they bought
it in dollars?
i've been searching this in the internet all the day but there was nothing about third party banks role in international trade.
It requires banks to process international trade. If a country imports more than they export, it results in a trade deficit.
The responsibilities of Central Bank are implementing monetary policies, determining interest rates, controlling the nation's entire money supply, managing the country's foreign exchange and gold reserves and the Government's stock register, regulating and supervising the banking industry and setting the official interest rate used to manage both inflation and the country's exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms.