Central banks impact our daily lives in many ways with their role to promote economic and financial welfare of citizens, but their operations are even more critical during a crisis. Central bank reserves provide an essential buffer against uncertain economic outcomes and help protect against economic shocks to promote trade, maintain price stability, and attract foreign investment. Effective reserve management supports the broader mission of central banks to set targets for unemployment, inflation, and interest rates to ensure a healthy economy with full employment and favorable conditions to promote investments and the conducting of business.
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