Euro Market

Euro Market

1. Euro Market Prepared By: Mohammed Jasir PV Asst. Professor MIIMS Puthanangadi Contact No: 9605 69 32 66

2. Euro Market Euro Currency Market

3. Euro Market It is a large market comprising many member nations of EU It facilitates the free movement of goods and services In other words efficient trade mechanisms such as low tariffs, quotas etc . and have a centralized monetary policy U sing a common currency - Euro (Most of them) The euro market acts as a major source for international trade

4. More about EM Single market for EU The European commission describes the single market as "one territory without any internal borders or other regulatory obstacles to the free movement of goods and services." Free flow of goods and services Intended to improve efficiency, stimulate trade and help growth etc. (Deeper economic integration) Eurozone / Euro Area

5. A euromarket can be used to describe the financial market for Eurocurrencies

6. Terms Euro European Union Euro Currency Euro Bank Euro Market (2 Description)

7. Eurocurrency is currency deposited by national governments or corporations, outside of its home market. Commonly it is currency held in banks located outside of the country which issues the currency.  For example, a US dollar denominated deposit in a Singapore bank is Eurocurrency It is accumulated in European banks that deal in other currencies such as American dollar, Japanese Yen, Swiss Francs, etc . Euro Currency

8. Euro Bank A Eurobank is a financial institution that accepts foreign currency denominated deposits and makes foreign currency loans. Eurobank does not necessarily have to be located on the continent of Europe; it can be anywhere in the world. For example, a bank located in the United States that extends loans or holds deposits in Japanese yen is a Eurobank . 

9. Eurocurrency Market The Eurocurrency market consists of Euro Banks that accepts deposits and offers credit in foreign currencies. Eurocurrency refers to a currency that is freely convertible and is deposited in a bank present in a country where the currency is non-domestic. The bank can be either a foreign bank or a foreign branch of a domestic bank

10. Features about Euro Market International Market Independent Market Wholesale Market Competitive Market Short term market Inter-Bank Market

11. Features of Euro-currency market 1. International Market The Euro-currency market is an international market which accepts deposits and gives credit in currencies from throughout the world . 2. Independent Market It is a free and independent market which does not function under the control of any monetary authority . 3. Wholesale Market It is a wholesale market in which different currencies are bought and sold usually above $ 1 million.

12. Contd.. 4 . Competitive Market It is a highly competitive market in which the supply and demand for currencies depends on interest rate changes of Euro-banks . 5. Short-Term Market It is a short-term money market in which deposits in different currencies are usually accepted for a period ranging from a few days to a year and interest is paid on them. 6. Inter-Bank Market It is an inter-bank market in which the Euro-banks borrow and lend dollars and other Euro-currencies from each other.