Translated from Russian by Google Translate
2 Сентябрь 2009

World’s largest banks, have an impact on the FX market

Influence of central banks of various countries on the situation on the currency Forex market is indisputable. All of them are in their own right and act in their interests. And if you are the driving force behind market assessment is fundamental analysis, Forex, you should definitely hold more detailed information on each of the banks. Economic rate of various States is forcing banks to operate within the framework defined national policy. And in order to influence the state of affairs in the foreign exchange market requires a large capital.


Many banks have foreign exchange reserves, which are often used in the commission of intervention. On such days Forex market is particularly unpredictable. But our task - to provide a possible change in the balance of forces in the Forex market and for this we must have at least a general idea about the features of the most powerful central banks.

European Central Bank

This bank is the central bank of the European Union. Built in 1998. Central office (also known as the headquarters) is located in Frankfurt. All members of the European Union have its representation in the bank. ECB is a structural subdivision of the EU, but has its own management and works on the principle of independence of management.

The bank managed by a Board of Governors, which is subdivided into:
• Members of the ECB’s Directorate
• Managers of National Bank

The European Central Bank

The permanent members of the Governing Council are representatives of the regional central banks of Spain, Germany, France and Italy.

Direction

Directorate of the ECB consists of six members. Two of them - Chairman of the ECB and his deputy. Nominations to fill vacancies in the Directorate are nominated by the Governing Council, followed by a procedure approved by the European Parliament, as well as all the Heads of States Parties to the euro area.

Challenges ECB

The main task of the ECB is to maintain price stability in member countries of the EU. Price stability is evaluated as deterrence growth harmonized consumer price index. According to the installation of the annual growth of this index should not exceed 2%. Twice a month, the Council established by the ECB announces interest rate and a monthly commentary on monetary policy is conducted.

U.S. Federal Reserve (Fed)

The function of the central bank in the United States is the Fed. The Fed is an association of 12 regional U.S. banks. The most important of the 12 banks that have an impact on the FX market is the Federal Reserve Bank of New York. The bank is responsible for the commission of international financial transactions. In addition, the composition of the Fed are still 24 chapters and about 5,6 thousand commercial banks. Not least of the Fed is the Federal Open Market Committee. His responsibilities include regulating sales of securities. All the central institutions of the Federal Reserve in Washington.

U.S. Federal Reserve

Objectives

Federal Reserve System is the governing body of the national economy. Peculiarity of the economic policy of the Fed is that it is designed to combat inflation and deflation processes. In addition, the Federal Reserve to regulate the stability of the national rate. At the Fed a lot of responsible supervisory functions. For example, the Fed is responsible for the size of the loan, which is used for transactions of purchase and sale of securities. The Fed is also the body which supervises all U.S. banks, which conduct their activities abroad.

Effect on the dollar may have:

• President Obama (Barack Obama)
• President of the Federal Reserve Bank of New York, William Dudley (William C. Dudley)
• Minister of Finance Timothy Geithner
• Former Fed Chairman Alan Greenspan

Bank of England

In the United Kingdom Bank of England acts as the central bank.

Bank of England

The bank was founded in 1694. Real independence of the Bank acquired only in 1997. The Bank is authorized to control the entire British financial system. And it is worth noting that he contributed greatly to the successful development of the economy. In addition, it has a significant impact on the FX market. The priorities of the bank - to maintain employment growth and price stability. Price stability is defined as the growth of the retail price index less than 2,5% per year. Interest rates sets the structural unit of the Bank of England - Monetary Policy Committee. The result of the meeting of the Committee, during which interest rates are set, shall be delivered in 12:00 (GMT) on the second day of the meeting.

National Bank of Switzerland (SNB)

The peculiarity of this bank is that it is not a public institution. But, despite this, the state influence on economic policy bank is very high. The Bank began operations in 1907. SNB operates under the leadership of the Government of Switzerland.

The National Bank of Switzerland

SNB conducts monetary policy as an independent institution. This functionality is not accidental, since the acting in this way, the bank creates favorable conditions for economic growth. This is enshrined in the Constitution. The main goal - achieving price stability. Through fundamental analysis, Forex, always keep in mind that the SNB - an independent agency.

The Bank of Japan

Bank of Japan gaining a reputation as the most aggressive bank. He is famous for frequent interventions. Recently, they are aimed at reducing the yen. Since 1998, the Bank of Japan gained independence from the government. Regulation of interest rates provides the Governing Board. Each month the Bank of Japan is the consolidated report on the state of economic development and the level of inflation. In determining the level of interest rates is taken into account this report. Often has an impact on the FX market through a multi-million dollar intervention.

The Bank of Japan