Liquidity management is one of the main pillars of the stability of the banking system, which plays an important role in the optimal allocation of financial resources, providing the liquidity needed by banks, and preventing disruptions in the flow of payments. The Central Bank, as a monetary authority, monitors liquidity flow by utilizing policy and supervisory tools and tries to take steps to strengthen financial stability through their optimal application. This research, with a descriptive-analytical approach and based on library resources, focuses on the Central Bank Law of 1402 and seeks to answer the question: "What approach has the Central Bank Law of 1402 adopted towards selected supervisory tools in order to manage liquidity and financial stability?" The findings show that efficient supervisory tools can reduce the risks arising from a shortage or surplus of liquidity and increase the level of trust in the banking network. Also, the correct application of legal requirements related to liquidity management and financial stability on the one hand and coordination between the monetary and supervisory policies of the Central Bank on the other hand, have direct effects on optimizing liquidity management and strengthening financial stability in the banking system. However, the Central Bank Law 1402 has adopted a prominent and detailed approach to some of the instruments examined in this study, and some others have only been mentioned implicitly.