This is what creates the market. This is where the European bankers come into the picture. They establish Forfaiting trades in Money Center Bank Debentures which are first issued in U.S. dollar denominations at a discounted price to the Commitment Holders of about 75 to 80 cents on the dollar. The debentures are then placed at the disposal of major European Money Center Banks and first go into trade at about 82 cents on the dollar. The importance of this value building process can be seen when it is understood that these trades are taking place in multiples of hundreds of millions of dollars on a daily basis, year in and year out.
All fiat currencies are debt instruments, which are issued against a value building transaction.
When we accept dollar loans from a U.S. bank they literally created that loan on paper, funded it with paper, and we then redeem the debt with our labor and goods, creating value for the borrowed currency in the process. The International Monetary Fund and the World Bank work to place EurodoIlar into value building projects the world over. The funds used by these organizations originate from Debenture Forfait Trading , and is yet another method to establish value for the U.S. dollar in world markets. Specific banks are not disclosed to potential clients outside the parameters of an approved transaction. Press this button to send us a message.