The Deutsche Bundesbank is the independent central bank of the Federal Republic of Germany. The Bundesbank, the other national central banks in the euro area as well as the European Central Bank constitute the Eurosystem. The Eurosystem is responsible for Europe’s common currency, the euro.

The main objective of the Eurosystem is to safeguard the value of the euro. The necessary monetary policy decisions are taken by the Governing Council of the European Central Bank. The President of the Bundesbank is a member of the Council and has a vote on monetary policy decisions. The Governing Council of the European Central Bank uses monetary policy instruments to influence interest rates in the euro area in order to maintain price stability. The Governing Council considers that price stability is best maintained by aiming for 2% inflation over the medium term. The Governing Council’s commitment to this target is symmetric. Symmetry means that the Governing Council considers negative and positive deviations from this target as equally undesirable. The Bundesbank implements monetary policy decisions in Germany.

Via its network of branches the Bundesbank puts euro cash into circulation. It further ensures that there is always sufficient high-quality euro cash available in Germany. To this end, it replaces damaged banknotes and coins and withdraws counterfeit money from circulation.

Many payments are settled electronically from one account to another using a credit transfer or bank card. The Bundesbank monitors these cashless payments and ensures that the system operates smoothly. This includes providing the banks with settlement and clearing systems.

As part of European banking supervision, the Bundesbank supervises individual banks in Germany – to ensure that citizens’ money is safe in bank accounts and that banks can fulfil their central role in the cash cycle.

At the same time, it monitors the financial and monetary system in order to identify disruptions and dangers to the economy at an early stage and take countermeasures where necessary. To this end, the Bundesbank works in German, European and international institutions and committees to secure financial stability.

As a central bank, the Bundesbank also has additional tasks: research, drawing up and maintaining statistics, managing the reserve assets. And it is also the German government’s fiscal agent.

In all of its tasks, the Bundesbank is committed to a stable currency.