An international currency is one that is used and held beyond the borders of the issuing country, not merely for transactions with that country’s residents, but also, and importantly, for transactions between non-residents. In other words, an international currency is one that is used instead of the national currencies of the parties directly involved in an international transaction, whether the transaction in question involves a purchase of goods, services or financial assets.
It is important in this context to distinguish between a country that is host to an international financial centre and one that has an international currency. Singapore is a major international financial centre: banks located there, including the affiliates of foreign banks, conduct international business for their clients and themselves, including currency trading. In fact, in terms of the volume of currency trading, Singapore ranked fifth among all countries in the most recent BIS Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity; its total foreign exchange turnover was exceeded only by those of the United Kingdom, the United States, Switzerland and Japan (BIS (2008)). For many years, however, the government of Singapore strongly discouraged use of the Singapore dollar as an international currency – one in which foreign entities may issue or trade securities.
Dimensions of internationalisation
An international currency is one that is used and held beyond the borders of the issuing country, not merely for transactions with that country’s residents, but also, and importantly, for transactions between non-residents. In other words, an international currency is one that is used instead of the national currencies of the parties directly involved in an international transaction, whether the transaction in question involves a purchase of goods, services or financial assets.
It is important in this context to distinguish between a country that is host to an international financial centre and one that has an international currency. Singapore is a major international financial centre: banks located there, including the affiliates of foreign banks, conduct international business for their clients and themselves, including currency trading. In fact, in terms of the volume of currency trading, Singapore ranked fifth among all countries in the most recent BIS Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity; its total foreign exchange turnover was exceeded only by those of the United Kingdom, the United States, Switzerland and Japan (BIS (2008)). For many years, however, the government of Singapore strongly discouraged use of the Singapore dollar as an international currency – one in which foreign entities may issue or trade securities.
Dimensions of internationalisation
การแปล กรุณารอสักครู่..
