To maintain economic growth and financial stability, central banks are primarily responsible for maintaining inflation. In line with the "Monetary Policy Framework", central banks may intervene in financial markets when necessary. The implementation of such a policy is highly anticipated by forex traders looking to take advantage of resulting currency movements.

Central banks play a pivotal role in the forex (foreign exchange) market, influencing global economic stability through their monetary policies. One primary function is managing a country's currency by implementing policies such as interest rate adjustments and open market operations. By doing so, central banks aim to control inflation, stabilize exchange rates, and promote economic growth.

In the forex market, central banks engage in currency interventions to influence their own currency's value. They may buy or sell currencies to maintain stability or address economic challenges. Additionally, central banks use foreign exchange reserves to support their currency and absorb excess liquidity. Key decisions made by central banks, such as interest rate changes or policy statements, have immediate and profound impacts on currency values.

The interplay between central banks and the forex market underscores their critical role in shaping global economic conditions, affecting trade balances, and contributing to overall financial market stability.