Wholesale money markets
The term 'money market' covers the vast network of deals involving the lending and borrowing of cash in a range of currencies. 'Wholesale' means funds borrowed or lent in large quantities.
The term 'money market' covers the vast network of deals involving the lending and borrowing of cash in a range of currencies, generally between financial institutions such as banks, as well as manufacturers and the government. It also covers the market for tradable securities, such as Treasury Bills (shorter-term government-issued IOUs).
'Wholesale' means funds borrowed or lent by those financial institutions in large quantities, rather than the smaller amounts dealt in by private individuals. Money market rates vary between currencies and are determined by the supply of, and demand for, short-term cash. Being market-driven, they paint a truer picture of loan costs than central banks' official interest rates.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
The price of copper has risen – how long will the bull market last?
The price of copper has leapt to almost a two-year high, but demand for the metal continues to outstrip supply. How long will the market remain bullish?
By Alex Rankine Published
-
TSB set to close 36 bank branches
TSB joins the list of high street banks closing their doors to its branches as it claims more customers are moving online - we have the full list of closures
By Marc Shoffman Published