There is significant heterogeneity in the structures of money MARKETS across the Asia-Pacific region. With only a few exceptions, they are smaller relative to the SIZE of their economies than those in the United States and Europe.

Broadly speaking, CASH markets for short-term debt securities tend to be the most developed in the region, followed by INTERBANK markets. Repo and foreign exchange (FX) swap markets are, in most economies, the least developed.

Some money markets, including those of Australia and Japan, are closely integrated both with the domestic economy and with international financial markets. Others, such as the Chinese market, are integrated much less. The Australian and New Zealand onshore money markets are among the most internationalised, with significant participation by foreign borrowers and investors; this partly reflects strong demand among foreign investors for securities denominated in higher-yielding currencies. Borrowing in most other markets in the region is dominated by local entities; however, where their participation is not prohibited, foreigners are often important investors.

There is significant heterogeneity in the structures of money markets across the Asia-Pacific region. With only a few exceptions, they are smaller relative to the size of their economies than those in the United States and Europe.

Broadly speaking, cash markets for short-term debt securities tend to be the most developed in the region, followed by interbank markets. Repo and foreign exchange (FX) swap markets are, in most economies, the least developed.

Some money markets, including those of Australia and Japan, are closely integrated both with the domestic economy and with international financial markets. Others, such as the Chinese market, are integrated much less. The Australian and New Zealand onshore money markets are among the most internationalised, with significant participation by foreign borrowers and investors; this partly reflects strong demand among foreign investors for securities denominated in higher-yielding currencies. Borrowing in most other markets in the region is dominated by local entities; however, where their participation is not prohibited, foreigners are often important investors.