MD Naimur Rahman 32025
MD Naimur Rahman 32025
MD Naimur Rahman 32025
Bangladesh Bank, the central bank and apex regulatory body for the country's monetary and
financial system, was established in Dhaka as a body corporate vide the Bangladesh Bank Order,
1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. At present it has ten offices
located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur
and Mymensingh in Bangladesh; total manpower stood at 5807.
Functions
BB performs all the core functions of a typical monetary and financial sector regulator, and a number of other non
core functions. The major functional areas include :
Formulation and implementation of monetary and credit policies.
Regulation and supervision of banks and non-bank financial institutions, promotion and development .
Management of the country's international reserves.
Issuance of currency notes.
Regulation and supervision of the payment system.
Acting as banker to the government .
Money Laundering Prevention.
Collection and furnishing of credit information.
Implementation of the Foreign exchange regulation Act.
Managing a Deposit Insurance Scheme .
If a nation’s economy were a human body, then its heart would be the central bank. And just as the heart works to
pump life-giving blood throughout the body, the central bank pumps money into the economy to keep it healthy and
growing. Sometimes economies need less money, and sometimes they need more.
The methods central banks use to control the quantity of money vary depending on the economic situation and power
of the central bank. In the United States, the central bank is the Federal Reserve, often called the Fed. Other
prominent central banks include the European Central Bank, Swiss National Bank, Bank of England, People’s Bank
of China, and Bank of Japan.
Let's take a look at some of the common ways that central banks control the money supply—the amount of money in
circulation throughout a country.
At the macroeconomic level, the amount of money circulating in an economy affects things like gross domestic
product overall growth, interest rates, and unemployment rates. The central banks tend to control the quantity of
money in circulation to achieve economic objectives and affect monetary policy.
Print Money
Once upon a time, nations pegged their currencies to a gold standard, which limited how much they could produce.
But that ended by the mid-20th century, so now, central banks can increase the amount of money in circulation by
simply printing it. They can print as much money as they want, though there are consequences for doing so.
Merely printing more money doesn’t affect the economic output or production levels, so the money itself becomes
less valuable. Since this can cause inflation, simply printing more money isn't the first choice of central banks.
After the financial crisis of 2007–2008, the Bank of England and the Federal Reserve launched quantitative easing
programs. More recently, the European Central Bank and the Bank of Japan have also announced plans for
quantitative easing.