Related introduction:
1957 the bank of England has taken measures to implement strict foreign exchange control on sterling loans outside the sterling area; On the other hand, commercial banks in London are allowed to accept US dollar deposits and issue US dollar loans, thus opening up London's foreign currency trading market dominated by US dollars.
Extended data
Related background:
The European money market originated in the 1950s. At first, there were only Eurodollars on the market. At that time, the United States froze China's funds deposited in the United States during the Korean War. For the safety of their own funds, the former Soviet Union and Eastern European countries transferred their original US dollars to the Nordic Commercial Bank opened by the former Soviet Union in Paris, the Moscow State Bank opened in London and other European commercial banks in London.
The European money market has brought the international financial markets closer together, promoted the economic development of some countries, accelerated the development of international trade, and helped some countries solve the balance of payments deficit problem. However, the European money market has also brought instability to the world economy that cannot be underestimated, and the risks of banks operating European money business have increased.
Baidu encyclopedia-European currency market