One major function of the Central Bank is to control and regulate the money supply in an economy.
The Central Bank is the highest monetary authority in a country, and it is responsible for implementing monetary policies that help to maintain economic stability. One of the ways it does this is by controlling the amount of money that is circulating in the economy. This is important because if there is too much money in circulation, it can lead to inflation, and if there is too little money, it can lead to a recession.
To control the money supply, the Central Bank can use various tools, such as setting interest rates, regulating the reserve requirements for banks, and buying or selling government securities. By using these tools, the Central Bank can influence the amount of money that is available in the economy, and help to maintain stable prices, employment, and economic growth.
In summary, the Central Bank's role in controlling and regulating the money supply is essential to ensuring the stability and growth of an economy.