These functions include management of foreign exchange reserves, foreign exchange interventions have an impact on the level of the exchange rate, as well as regulation of the level of interest rates on investments in the national currency. The biggest influence on world currency markets is the U.S. central bank - the Federal Reserve System (US Federal Reserve or FED). Then followed by the central banks of Germany - Bundesbank (Deutsche Bundesbank or BUBA) and British (Bank of England also called the Old Lady). Central Bank monitors the level of inflation in the country, the national currency and is trying to regulate with the help of three key interest rates: 1. Discount Rate - Discount rate. The interest rate under which the Central Bank credits commercial banks.

American and British rates are quite high, so they have a great interest of foreign investors. 2. Interest rate - Repo rate. The interest rate used in the operations of the Central Bank to commercial banks and other lenders for the purchase (accounting) of the public treasury obligations. CB thus regulates capital market loan. Fed Funds (rate Repo USA) 3. Lombard rate - Lombard rate. The interest rate applied by the Central Bank under the mortgage, gold values in issuing loans to commercial banks. As the interest rates increased business activity and rising inflation. The decline in interest rates leads to a cheaper currency. Raising interest rates leads to a decrease of activity, reduce inflation and the cost of the national currency. In modern terms the method of influence on the rate of national currency continues to be the practice of buying and selling by central banks of foreign currency, known as the currency intervention. The central banks of the world: USA: FED - Federal Reseve System The decision to change the rates adopted FOMC - Federal Open Market Committee, which met every six weeks, two days: Monday and Tuesday. Chairman of the Board - Alan Greenspan The rate for federal funds (refinancing) = 1.75% Discount Rate = 1.25%. Germany: Bundesbank (BBK, Buba) - The Central Bank of Germany Buba cooncil meeting - meeting Buba - every 2 weeks on Thursdays; Chairman - Ernst Welteke Great Britain: Bank of England - BOE; Session 1 times per month; President - Eddie George Discount rate = 4.00% Switzerland: Swiss National Bank (SNB); The meeting - every Thursday; Chairman - Hans Meyer rate of LIBOR = 0.25-1.25% Japan: Bank of Japan (BOJ); meeting 24 hours a day; Chairman of the Board - Masaru Hayami Discount rate = 0.10% EU: Europian Central Bank (ECB); Chairman of the Board - Willem F. Duisenberg, President of the ECB Discount rate = 3.25%.