Domestic money markets trade in funds denominated in the local currency and operate under regulations governing domestic markets. When funds in any currency are traded outside the regulations governing domestic markets in that currency , then we have a foreign or external money market. This is the case when U S dollar deposits are traded outside the banking regulations governing domestics U.S dollar deposits, usually outside the United States. This type of transaction is the core of the so - called eurodollar market. When speaking of all the currencies traded in foreign markets, one usually refers to them as the Eurocurrency markets; these include Euro – French francs, Euro - German marks, and so on.
We should note, too that in addition to the Eurocurrency markets, foreign money markets have also emerged in Aisa. The Middle East and to a much lesser extent , in other regions. These other markets are often identified by names such as the “ Asian dollar market.” The limitations on the term “Eurodollar market” also apply to terms such as Asian dollar market.”
We should note, too that in addition to the Eurocurrency markets, foreign money markets have also emerged in Aisa. The Middle East and to a much lesser extent , in other regions. These other markets are often identified by names such as the “ Asian dollar market.” The limitations on the term “Eurodollar market” also apply to terms such as Asian dollar market.”
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