Commercial

0x3475280b82b02764ffdf2ba0b9ccdbdcdf2a6fa9@newsletter.paragraph.com (Untitled) — Fri, 29 Jul 2022 07:13:16 GMT

In these cases, a commercial bank from the second level of the banking system creates money. However, the costumer might be a commercial bank as well, in this case, it is the central bank who creates money. Out of the three methods of money creation, buying foreign exchange and buying securities are secondary.