Financial Markets: Money and Capital Markets

The Georgian financial market consists of the money market, foreign exchange market, and securities market, which are the main elements of the financial system. 

The money and capital markets are not separate entities, but rather two major components of the global financial system.

Within the educational section of the "Capital Market Support Program," read a post on the topic of money and capital markets. 

The money market is a market for trading short-term debt. It is a continuous flow of currency between governments, businesses, banks, and financial organizations, borrowing and lending for as little as overnight and as long as a year. Individuals, banks, other businesses, and governments can store funds in the money market for a limited period of time, generally one year or less. It exists so that businesses and governments who require cash to function may obtain it swiftly and at a fair cost, and so that enterprises that have excess cash can spend it. 

Instruments used in the money markets include deposits, collateral loans, and bonds, while Georgian money market institutions include the National Bank of Georgia, commercial banks, and other companies. 

The capital market comprises both stock and bond trading. Financial institutions, professional brokers, and ordinary investors purchase these long-term investments. The primary purpose of corporations that enter the capital market is to obtain funds to fund long-term objectives. This is frequently done to grow their business and gain income.

The money and capital markets together account for a sizable portion of the financial market.

The  Capital Market Support Program is funded by the European Union and is implemented by the EBRD’s Capital & Financial Markets Development team. The program is led by EBRD’s lead contractor, Galt & Taggart, together with BDO Georgia.

See detailed information about the project at the link.