Central Bank of developed countries

Bank of developed countries often do not only manufacture but also design, protection of banknotes against counterfeiting, and other technical issues. In the states of Western Europe and the U.S. Banknotes do not write that they are provided with gold, precious metals, securities and other assets (but this is reflected in the published balance sheets of the Central Bank). How to ensure that acts as an asset of the Central Bank, the principal articles which are usually foreign exchange reserves portfolio of government and other securities, loans to banks against securities. In developed countries, the issue of banknote issue is solved in different ways, but he always has a legal basis: often legally defined the nature of software and, therefore, set limits consequential issue of paper money. On the insignificant role of the Central Bank as a function of the emission center is often indicated by the absence of a special unit in the main office of the Central Bank (for example, the Bank of England). This function is increasingly seen as a technical and concerns, mainly bank branches dealing directly with a cash job, as well as the printer of banknotes. Monopoly is needed, above all, to avoid abuse and to facilitate the single monetary policy. Topic: Banking systems | Tags: characteristics of the banking system