• Name : Afif Ardyansyah

• Faculty : Ilmu Administrasi Bisnis

Topics

The primary goal of central banks is to provide their countries' currencies with price stability by
controlling inflation. What will happen if a country does not have Central bank?

The central bank in a country, in general, is an agency responsible for monetary policy in that
country's territory. The Central Bank strives to maintain currency stability, the stability of the
banking sector and the financial system as a whole. In Indonesia, the function of the central bank
is carried out by Bank Indonesia. The central bank is an institution that is responsible for
maintaining price stability or the value of a currency prevailing in that country, which in this
case is known as inflation or rising prices, which in other words means a decrease in the value of
money.

If the bank doesn't exist, you can no longer keep your money safely. You have no choice but to
keep money in the house and every time you leave the house the feeling of worry will always be
there because you feel insecure. That way, having a lot of money doesn't make you happy but
makes you suffer and suffer. Not only that, for example, you have an idea to open a traditional
organic food business. But unfortunately, you don't have enough capital to start this business.
Because there are no banks, you end up being forced to borrow from those who have more
money.

Therefore all the descriptions of the difficulties above are only a small part of the infinite
problem if banks really do not exist. And that's why the existence of a bank is very important
because it can make life easier than what you imagine.