On the Role of Central Banks in the Monetary Circulation System: A Legal Aspect

The authors of the article analyze the role of central banks in the monetary circulation system, the legal regulation of their activities; they emphasize that the stability of the national currency is an important aspect of the central bank's activities. The purpose of this study is to analyze the fundamentals of legal regulation of monetary circulation and the role of central banks in this area. Central banks play a key role in ensuring interaction with commercial banks, providing them with liquidity and regulating their activities. One of the mechanisms of such interaction is REPO operations, which allow commercial banks to receive short-term financial resources secured by securities. The Central Bank of Russia actively uses this instrument, which helps maintain the solvency of the banking system and ensures the stability of the banking sector. These operations help to prevent liquidity crises that can negatively affect the financial system as a whole. Financial institutions actively cooperate with regulators to comply with legal standards and protect consumer rights. The European Central Bank has introduced new transparency standards, obliging financial institutions to provide customers with detailed information about the risks and conditions of their services. This interaction contributes to the formation of a unified approach to consumer protection at the international level, which is especially important in the context of the globalization of financial markets. In crisis situations, central banks act as the «lender of last resort», thereby maintaining liquidity, solvency, profitability, and preventing the collapse of the financial system. Thus, the central banks of any country are the key institution of the monetary system, which, as a rule, are responsible for its functioning and efficiency.