Chapter 0358 Love-Hate World Offshore Financial Market

"Although these huge amounts of offshore funds are a headache for countries around the world, there is no way, as long as there is international trade, it is inevitable that the payment of international currency will be inevitable, and the offshore funds will never be eliminated. Colonel Pavlov went on to explain.

"Therefore, in recent years, countries around the world have made a lot of efforts to suppress offshore funds, especially the Federal Reserve has broken its head to suppress the offshore dollar, and has organized a number of large-scale offshore financing battles, but without exception, they all ended in failure. ”

"The above is the source of global offshore funds, and I will continue to explain the world's offshore financial market. ”

"Although the existence of a large amount of offshore funds has brought great security risks to the financial authorities of countries around the world, it does not mean that these offshore funds are useless. ”

On the contrary, these offshore funds have played an extremely important role in the world's financial circles, and many people have vividly called these huge amounts of offshore funds the lubricant of world finance, which is a very appropriate metaphor. ”

"What is the essential meaning of finance? Finance refers to financial integration, that is, the party that has the need for funds provides financial support, and at the same time provides investment opportunities for the party with surplus funds. ”

"And the flow of offshore funds perfectly assumes the real role of finance. For example, if an underdeveloped country wants to import advanced machinery or technology from a developed country, but the country lacks the international currency for international trade, the US dollar, what should we do?"

"Without the existence of the world's offshore financial market, the country would have to go to the International Monetary Fund or the World Bank to apply for extremely demanding loans. ”

"Or negotiate with the supplier of advanced machinery and equipment, and sign some humiliating treaties such as guaranteeing domestic taxes or customs revenues, or giving preferential tariffs to that country. ”

"Either way, it's a trampling on the dignity of this underdeveloped country, and it's something they don't want to accept at all!"

"And because of the world's offshore financial market, things are much simpler, the country can go to the world's offshore financial market, and only need to pay a certain amount of collateral to borrow money at the international general interest rate, so as to achieve their import purposes. ”

"At the same time, it also saves the country from looking at the faces of other countries, and even paying the price of sovereignty, from which we can see the importance of the world's offshore financial market. ”

"For example, if an investment institution has a unique vision and sees a fleeting investment opportunity in the world's financial markets. ”

"If there is no offshore financial market in the world, then the investment institution needs to borrow funds from other investment institutions or banks, and according to the procedures, the lending bank must carry out the necessary project inspection and evaluation procedures. ”

"This set of procedures not only consumes a lot of time, loses the fleeting investment opportunity, but also causes adverse effects such as investment leakage, so it has a great impact on the borrowing investment institutions. ”

However, because of the existence of the world's offshore financial market, the investment institution can easily borrow a large amount of money for investment, eliminating the complicated procedures of loans, and ensuring that it can maximize investment profits. ”

"In addition, because of the existence of the world's offshore financial market, once there is any fluctuation in the exchange rate of the currencies of various countries, speculation opportunities are discovered by offshore funds. ”

"A large amount of offshore money will immediately flock to speculate, so that the country's currency exchange rate will soon return to normal levels while earning investment returns. ”

"All in all, the world's offshore financial market can not only undertake the capital financing function of traditional financial markets such as banks, stock markets, and bond markets. ”

"It can also assume many functions such as balancing the international foreign exchange market that the traditional financial market does not have, and the role is absolutely incomparable to any traditional financial market. ”

Therefore, although the financial authorities of various countries hate the world's offshore financial market, they cannot erase the great contribution of the world's financial market, so they can only sigh at it. ”

"Moreover, there is a very distinctive feature of the world's offshore financial market, that is, its entry threshold is extremely low!"

"Unlike the futures market and bond market, which require tens of millions of dollars at every turn, the world's offshore financial market has a very low entry threshold, or even almost no entry threshold. ”

"As long as a person holds a certain amount of international currency, even if it is a dollar, as long as someone outside the United States borders borrows his dollar, then he is considered to have entered the world's offshore financial market. ”

Therefore, it is precisely because of the huge role of the world's offshore financial market and the extremely low entry threshold that the world's offshore financial market has developed very rapidly in recent years. ”

"The size of the world's offshore financial market has also grown rapidly from hundreds of billions of dollars in the sixties and seventies of the twentieth century to trillions of dollars in the eighties, and has soared to tens of trillions of dollars after entering the nineties!"

And at present, a complete system has been formed with London, British Virgin Islands and other world offshore financial centers as the center, and Paris, Zurich, Dubai, **, Tokyo, New York and other regional offshore financial markets as supplements. ”

"Oh, that's what happened!" Colonel Pavlov spoke thoroughly, and Qiao Tianyu also understood, and he couldn't help but nod vigorously after listening to it.

"Mr. Colonel, listening to your words is really better than reading a book for ten years! This time I have thoroughly understood the world's offshore financial market!"

"Haha, Mr. Qiao, you have an overreputation, I am not talented, and I have an axe in front of you. Colonel Pavlov said modestly.

"Mr. Colonel, after your lecture, I have basically understood the world's offshore financial market, but I still have a few questions that I need your help to answer. Qiao Tianyu said politely.

"You say, I must know everything!" said Colonel Pavlov.

"The first question is, is the world's offshore financial market an on-exchange market or an over-the-counter market? That is, is there a fixed trading venue in the offshore financial market like the stock market and the futures market?" Qiao Tianyu asked.

"No!" Colonel Pavlov then explained.

"In a general sense, the world's offshore financial market is a typical over-the-counter market, that is, dealers buy and sell through telephone, telegraph and Internet contact, and there is no fixed trading venue. ”