EURO

CURRENCY
MARKETS
Presented by:
Divya Rao – 34
Kalpesh Vetkar – 51
Karishma Jethwani – 52
Kavita Naik – 55
Sanmay Tribhuvan – 90
Euro Currency Market And It’s Origin
 The Euro Currency Market is the money market in which any currency is
deposited or traded in a country other than the country of its origin.
 Central role - Short & medium term international borrowing, lending to large
corporations & banks for financing international trade.

 Originated – 1920s

 First developed - London.

Characteristics of Euro Currency Markets
 An International Market and it is under no National Control

 Inter-Bank Market

 It is a Short-Term Money Market

 It is based on LIBOR

 It is a Wholesale Market
Growth of Euro Currency Markets
 Eurocurrency market began to develop in the 1950s.
 Explosive growth of the Eurocurrency market—
$25 billion in 1968
$105 billion in 1972
$250 billion in 1975
$9.5 trillion in 1999
$23 trillion in 2006
$50+ trillion in 2018
Reasons for Growth
 Flow of US Aid
 Decline in the Importance of Sterling
 Cold War
 Regulation-Q
 BOP Deficits in US
 Supply of Petro-dollars
 Innovative Banking
Eurocurrency Deposits

• The term Eurocurrency has nothing

to do with the euro currency or Europe.

• Eurocurrency is currency deposited by

national governments or corporations, 
outside of its home market.
Eurocurrency Deposits
• ​It is important to note that the term Eurocurrency applies to
any currency and to banks in any country.

For example, a US dollar denominated deposit in Japan is Eurocurrency,

or more specifically Eurodollar Yen deposit
TAX HEAVEN COUNTRIES

England Germany Ireland Jersey

Netherlands Switzerland Sweden Austria

THANK
YOU