Where does the Central Bank get its money?

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2026-03-16 06:10

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The central bank primarily gets its money through the creation of currency and credit. It can issue new money, which is often done by purchasing government securities or other financial assets in the open market, effectively injecting liquidity into the economy. Additionally, central banks can also obtain funds through the deposits made by commercial banks and other financial institutions, which are required to hold reserves with the central bank. These mechanisms enable the central bank to control monetary policy and influence economic activity.

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