Conditions for the formation of international financial markets

Hello, the conditions for the formation of the international financial market are as follows: political stability. This is the most basic condition for the formation of the international financial market. A free and open economic system. Including the abolition of foreign exchange controls, a high degree of openness and the free import and export of funds. A sound financial system and developed financial institutions. Including a sound market-oriented interest rate operation mechanism, a good financial industry development environment, the property right foundation of financial integrity, a sound financial laws and regulations system and its supervision system, as well as fully market-oriented financial institutions and organizations. Surgery. Modern communication facilities and convenient geographical location.

1, the international financial market is characterized by intangible market. Generally, there is no fixed place, but also a tangible market. There are many complicated institutions (banks and financial institutions) all over the world. Operate through modern telecommunication network. International financial markets can be divided into broad sense and narrow sense:

The international financial market in a broad sense, also known as the traditional international financial market, refers to the places where various international financial businesses are carried out, including money market, capital market, foreign exchange market, gold market and derivatives market.

2. In a narrow sense, the international financial market refers to a financial market that is divorced from the domestic financial system of the country where the market is located and mainly engaged in overseas transactions of non-residents in the country where the market is located, that is, it is not controlled by the laws and regulations of the government of the currency issuing country or the laws and regulations of the country where the market is located. It is also called offshore financial market or European market. Offshore financial market is an invisible market, which only exists in a certain city or region, but not in a fixed trading place. It is formed by international transactions of local financial institutions and financial assets. The European market is not limited to Europe. Because this market is produced in Europe, it is a customary name.

1. Nature of international financial market: traditional international financial market: engaging in international credit and international bond business in the currency of the country where the market is located. Transactions mainly occur between residents and non-residents in the country where the market is located and are subject to the financial regulations of the government of the country where the market is located. Offshore financial market: its transactions involve all freely convertible currencies.

2. Most transactions are conducted between non-residents in the country where the market is located, and their business activities are not bound by the rules and regulations of any national financial system. According to the length of financial communication: international money market: refers to the trading market or short-term capital market with a loan term of less than 1 year (inclusive). International capital market: refers to the medium and long-term credit or securities issuance or long-term capital market with the borrowing period exceeding 1 year.