in London by the Bank of England, aligning with recounts of the Treasury questioning whether financial institutions in London had excessive influence on decisions made by the Bank of England. Nonetheless, both the Treasury and Bank of England agreed that London should remain an important financial centre even after the sterling was no longer a major international currency. Therefore, imposing restrictive regulations would have been counterintuitive, leading to London's permissive environment. In reality, eurocurrency market centres in general enjoyed freedom from supply side restrictions such as reserve requirements and interest rate ceilings which allowed them, in particular London, to gain a competitive advantage by providing high and low rates of interest according to the class of the borrower and lender. Additionally, London's competitive advantage was enhanced by tight restrictions throughout the rest of Europe due to possible risks of "hot money", increased bank liquidity, and potential reliance on reserves in the case of bank runs. Currencies The four main Eurocurrencies are the US dollar, the Euro, the sterling and the Japanese yen; the currencies of the major economies of the world. Eurocurrency Markets A eurocurrency market is the money market for any currency deposited outside of its home market. The key participants in these markets includes banks, multinational corporations, mutual funds, and hedge funds. Eurocurrency markets are generally chosen as a source of finance over domestic banks for their ability to offer lower interest rates of borrowers and higher interest rates for lenders situationally. This because eurocurrency market have less regulatory requirements, tax laws, and typically no interest caps. Nonetheless, there are higher risks, particularly when banks experience periods of poor solvency which can lead to a run on the banks. There are several eurocurrency markets, with the two most widely used being the Eurodollar market and the Euroyen market. There are also various smaller eurocurrency markets including the Euroeuro market and the Europound market. Eurodollar Market The Eurodollar market involves holdings of US dollars outside of the jurisdiction of the US Central Bank. These holdings may arise via two primary ways. Firstly, from purchases of goods and services made in US dollars to suppliers who maintain European bank accounts - these suppliers may be European or non-European. Secondly, Eurodollar deposits arise from investments of US dollars in European banks, generally for more favourable returns on interest. Today, the Eurodollar market is the largest source of global funding for businesses