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Education·21 April 2026·5 min read

What a central bank actually does

It doesn't hold your money, but it influences everyone's. The role of the National Bank, explained simply.

What a central bank actually does
Image: domeniu public · Wikimedia Commons

A central bank (in Romania, the BNR) is not a bank for ordinary people. It issues the currency, keeps the country's reserves and ensures the banking system stays stable.

A hand on the money tap

Its main power is the policy interest rate: it makes credit cheaper or dearer across the whole economy, to keep inflation under control. It's like a thermostat for the economy.

Kosron Bank has its own "central treasury" that issues KOSR — a way to understand, through play, what a real central bank does.