As a market Paris was thus more akin to London than were the other continental centers. 7 Of all the financial centers in continental Europe, Paris had the widest range of market operations, as regards the number of currencies involved and the diversity of sources and uses of funds. For example, those in Germany were about $450 million in June 1962. Foreign currency deposits in other European financial centers were considerably smaller than in Paris. Foreign currency deposits for the account of nonresidents in Italy were $1.0 billion in March 1962, 6 and were thus slightly larger than those in Paris. In addition, these banks held about $400 million of foreign currency deposits for the account of residents. They were perhaps one third larger than those a year earlier. 5 Foreign currency deposits in June 1962 may be estimated at approximately $2½ billion.įoreign currency deposits of nonresidents in Paris banks were about $800 million in the spring of 1962. 4 Inclusion of the accepting houses, clearing banks, and certain foreign banks, allowing for the increase in their sterling deposits held by nonresidents, would raise this to a minimum of $2 billion. According to this estimate, foreign currency deposits of overseas and foreign banks in June 1961 were nearly £500 million, equivalent to nearly $1.4 billion. Fortunately, an estimate made by the Bank of England for June 1961 can serve as a bench mark. This estimate would have to be adjusted for incomplete coverage, duplications, and the increase in sterling deposits included in the figures. Such an estimate must be based on the assumption that the increase of deposits over some base date (e.g., the end of 1958, or some earlier date, suitably adjusted) yields a meaningful figure of foreign currency deposits held by nonresidents. residents may be disregarded) must thus be an estimate. The amount and trend of foreign currency deposits to the credit of nonresidents in London (those of U.K. They do, however, distinguish between assets and liabilities of residents and those of nonresidents. These data do not distinguish foreign assets and liabilities denominated in sterling from those denominated in foreign currencies. Data published for this market by the Bank of England cover overseas banks in London (British, U.S., and other foreign) and accepting houses, but not clearing banks in September 1962, the coverage was expanded to include 25 additional foreign banks operating in London. The foreign currency market in London is the largest in Europe. 3 And third, there are both duplications and omissions in the data reported for any one financial center. Second, a large but unknown amount of overlapping and duplication is created when statistics or estimates of foreign currency deposits of financial centers are added together, since banks accept deposits from, and place them with, each other. Size of Foreign Markets for Dollars and Other CurrenciesĪs noted in the earlier paper, “the size of the Euro-dollar market can be nothing but a guess-perhaps a very wild guess.” First, data for some financial centers are either not reported (e.g., Amsterdam, Paris, and Zürich) or are seriously inadequate (e.g., London and Montreal/Toronto).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |