The central bank is an entity that is responsible for overseeing a country's monetary system.

This cannot be separated from the function of the central bank in the economy itself.
Central banks have a variety of responsibilities, from overseeing monetary policy to carrying out
specific goals such as currency stability, low inflation and full employment.
The central bank as a government bank also generally issues currency, regulates the credit
system, oversees commercial banks, manages foreign exchange reserves and acts as a lender
of last resort.
That is, the central bank functions as a lender to a bank in circumstances that force it to
maintain the liquidity of the bank. Accordingly, the central bank has a purpose and is given the
responsibility to achieve and maintain the stability of the value of the currency in circulation.

sumber : https://money.kompas.com/read/2022/03/26/134353726/mengapa-dalam-ekonomi-
modern-setiap-negara-memiliki-bank-sentral?page=all