Forex is the largest market around the world not just in terms of average daily turnover. It is also the largest market in terms of participants. But who are the big players there? Central banks play a major role in the currency markets. Central banks are able to "print" money, they are the lenders of the last resort when a country gets into trouble. They can control the supply of the home currency, inflation, and interest rate. Central banks intervene on the international currency market by selling or buying home and foreign currencies. Most of the central banks are acting according to the fisher equation which tells them which interest rate they should target. To achieve these target rates central banks also have to watch the currency market. If they assume that the home currency is over or undervalued central banks can enter the Forex to stabilize the economy.