Central banks play a significant role in the forex markets by implementing monetary policy decisions that influence the value of their respective currencies. Central banks can impact exchange rates through interest rate changes, currency interventions, and other policy tools to achieve economic objectives such as price stability and economic growth. Traders closely monitor central bank announcements, speeches, and policy decisions for insights into future currency movements and potential trading opportunities in the forex market. Understanding the role of central banks and their impact on currency values is essential for successful trading in the forex market.