International and National Capital Sources
The size of the Eurocurrency market was estimated to be $480bn net of interbank lendings ($860bn gross) at the end of 1978.1 One has sympathy with anyone who believes that there is not that much money in the world, and disbelief is only encouraged by the variety of explanations for the origin and growth of the market. In fact, the origins, whether it was the Trosbank, the Soviet State Bank’s, transfer of dollar deposits from New York to its correspondents, the Moscow Narodny Bank in London and the Banque Commerciale pour l’Europe du Nord in Paris, or Brown Shipley’s acquisition of the US deposits of UK insurance companies or even if it simply dates from the time the movement of banks into non-domestic operations became noticeable, the predominant feature of Euromarkets has been the staggering rate of growth.
KeywordsInterest Rate Commercial Bank Exchange Exposure Foreign Loan European Currency Unit
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