EUROPEAN CENTRAL BANK Meaning and
Definition
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The European Central Bank (ECB) is an autonomous institution that serves as the central bank for the Eurozone, a monetary union which encompasses 19 European Union (EU) member states that have adopted the euro as their currency. Established in 1998 by the Treaty of Amsterdam, the ECB's primary objective is to maintain price stability within the Eurozone, aiming for an inflation rate of close to but below 2% in the medium term. It acts as the guardian of the euro and ensures the smooth operation of the single currency area.
The ECB carries out several key functions. It formulates and implements monetary policy decisions, determining interest rates and managing the supply of money in order to achieve its inflation target. It also contributes to the stability of the financial system by supervising and regulating banks within the Eurozone. Additionally, the ECB plays a vital role in the issuance and distribution of euro banknotes, as well as conducting foreign exchange operations to maintain adequate currency reserves.
The central decision-making body of the ECB is the Governing Council, which consists of the six members of the Executive Board and the governors of the national central banks of the Eurozone member states. The ECB operates independently from political interference, aiming to ensure the credibility and effectiveness of its monetary policy.
In summary, the European Central Bank is the central institution responsible for monetary policy, financial stability, and currency management within the Eurozone. It safeguards the stability of the euro and functions as the backbone of the European monetary system.
Common Misspellings for EUROPEAN CENTRAL BANK
- wuropean central bank
- suropean central bank
- duropean central bank
- ruropean central bank
- 4uropean central bank
- 3uropean central bank
- eyropean central bank
- ehropean central bank
- ejropean central bank
- eiropean central bank
- e8ropean central bank
- e7ropean central bank
- eueopean central bank
- eudopean central bank
- eufopean central bank
- eutopean central bank
- eu5opean central bank
- eu4opean central bank
- euripean central bank
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