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, 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.

MoneyWeek magazine

Latest issue:

Magazine cover
Heading higher?

Or are house prices set to fall?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

'Would you rather upset God, or have Him just ignore you?'

In the first of three interviews with Merryn Somerset Webb, Hugh Hendry, manager of the Eclectica Fund, talks about what it takes to be a good hedge fund manager – and how he learned to stop worrying and love central banks.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


24 November 1972: the 'DB Cooper' hijacking

Today in 1972, a man calling himself Dan Cooper parachuted from a hijacked Northwest Airlines Boeing 727 with $200,000 in cash. He has never been found.