In addition to the market where this currency is traded, some people call it the European money market.
Field. It actually includes three aspects. The first is to develop offshore money.
Loan business, followed by the issuance of various bonds expressed in overseas currencies, again
The exchange market between various foreign currencies, namely the foreign exchange market. Its origin can be
This can be traced back to the Cold War after the Second World War. After the Korean War broke out, the United States
China froze China's assets in the United States, so the Soviet Union and some eastern European countries put them.
American deposits were transferred to other European countries outside the United States. Zaiying
In London, China, these US dollar deposits provide conditions for businesses to carry out US dollar inventory business.
The government's restrictions on capital flow are also very important to promote the development of offshore financial markets.
Characteristics of offshore financial market
First of all, the market is basically not bound by the financial policies, laws and regulations and foreign exchange control measures of local government departments.
Secondly, the market is dominated by foreign enterprises and is not open to domestic residents.
Third, foreign currency trading in the market does not involve the operation and borrowing of local currency.
Fourth, the market has a relatively independent interest rate system, which is not limited by the interest rate level of the host country, but the interest rates of the same currency between offshore markets tend to converge.
Fifth, there are many kinds of currencies used in the market, and there are many kinds of transactions and services that can be provided to the world.