國際金融英文版ch7-文庫吧資料
2025-02-21 06:51本頁面
【正文】 ount market trades different drafts. In England, the market consists of banks, discount houses and bill brokers. Eurocurrency Markets ? Eurocurrency market is for transactions of financial assets and liabilities denominated in Eurocurrencies. ? Eurocurrency is a currency held in a country other than the country the currency is issued. For example, a dollar deposit in a London bank or a Paris bank. The dollar is called Eurodollar. If a sterling deposit held in a Japanese bank, the sterling is called Eurosterling. ? Eurocurrency market is an international money market because the maturities of various securities on this market are less than one year. The participants in this market are financial institutions, MNCs, governments and international institutions. ? The first Eurodollar deposits were in London and Paris banks during the 1950s. Former Soviet Unions were afraid of . freezing their funds in the . banks. They therefore transferred the funds from . banks to . and France. These dollar deposits were the first Eurodollars. Why does the market grow so rapidly? ? The causes contribute to the development of Eurodollar market include the increased regulation on banking industry in 1960s and oil crisis in 1970s. ? Regulation Q imposed a % ceiling on the interest rate the domestic banks could pay. ? Interest equalization tax (IET) required taxes on . residents’ earnings on foreign securities. ? Voluntary foreign credit restraint guidelines were restrictions placed on nondomestic uses of domestically generated funds. ? In 1970’s, OPEC countries poured huge amounts of oil ine into the Eurodollar markets. Oil importing countries needed funds to finance their huge BOP deficits. ? Rapid growth of international trade and investment also made the Eurocurrency market to prosper. Credit expansion through the Eurocurrency market Bank of America HSBC (eurobank) Assets Liabilities Assets Liabilities () $1m deposit (+) $1m deposit () $1m deposit of . pany at Bank of America of Chinese firm (+) $1m deposit of HSBC ? The . banking system is not effected. One million eurodollar is created in Hong Kong. Bank of America HSBC (eurobank) Assets Liabilities Assets Liabilities () $1m deposit () $1m deposit of . pany at Bank of America
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