Mint Parr: Under the gold standard, all countries stipulate the gold content of money. The ratio of the gold content of the unit currency of the two countries is called mint parity, which is the basis for determining the exchange rate. Because gold can be imported and exported freely, the exchange rate always fluctuates between the gold export point and the gold import point around the coinage parity.
engineering swap transaction
Swap transaction mainly refers to an act of exchanging debts in the same currency with debts in different currencies through financial intermediaries.
Swap trading is another typical financial market innovation business after the emergence of financial futures in the early 1970s. At present, swap transactions have developed from quantity to quality, and even formed a swap market. In this market, one side of the swap transaction puts forward certain swap conditions, and the other side can immediately undertake the corresponding conditions. Using swap transactions, we can raise ideal funds according to different interest rates in different periods, foreign exchange or restricted movements in the capital market. So from a certain point of view, the swap market is the best financing market. In a word, the development of swap not only adds new hedging tools to the financial market, but also opens up a new situation for the operation of the financial market.
Eurocurrency refers to the deposit and loan business of this currency created by the banking system outside the currency issuing country.
Narrow sense: refers to the monetary funds flowing outside the borders of a European country, that is, the monetary deposits and loans of other countries except their own currencies absorbed by European commercial banks. Broadly speaking, it refers to the currencies of various countries deposited in banks outside the issuing country, including Europe and other countries.