ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

Growth of Euro Currency Market

Growth of Euro Currency Market

Discuss Growth of Euro Currency Market within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; While opening up of the domestic markets began only around the end of seventies, a truly international financial market had ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
Growth of Euro Currency Market
Old
 (1 (permalink))
Abhijeet S
abhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to behold
 
abhishreshthaa
Operations Manager at Management Paradise
Management Paradise Guru
Status: Offline
Posts: 7,045
Join Date: May 2010
Growth of Euro Currency Market - September 10th, 2010

While opening up of the domestic markets began only around the end of seventies, a truly international financial market had already been born in the mid-fifties and gradually grown in size and scope during sixties and seventies.


This refers to the well-known ‘Eurocurrencies Market’. It is the largest offshore market.

Prior to 1980, Eurocurrencies market was the only truly international financial market of any significance.


It is mainly an inter-bank market trading in time deposits and various debt instruments. What matters is the location of the bank neither the ownership of the bank nor ownership of the deposit.


The prefix "Euro" is now outdated since such deposits and loans are regularly traded outside Europe.

Over the years, these markets have evolved a variety of instruments other than time deposits and short-term loans, e.g. certificates of deposit (CDs), euro commercial paper (ECP), medium- to long- term floating rate loans, eurobonds, floating rate notes and euro medium-term notes (EMTNs).


The difference between Euro markets and their domestic counterparts is one of regulation.


Eurobonds are free from rating and a disclosure requirement applicable to many domestic issues as well as registration with securities exchange authorities.



Emergence of Euro markets:
1. During the 1950s, the erstwhile USSR was earning dollars from the sale of gold and other commodities and wanted to use them to buy grain and other products from the West, mainly from the US.


However, they did not want to keep these dollars on deposit with banks in New York, as they were apprehensive that the US government might freeze the deposits if the cold war intensified.


They approached banks in Britain and France who accepted these dollar deposits and invested them partly in US.



2. Domestic banks in US (as in many other countries) were subjected to reserve requirements, which meant that a part of their deposits were locked up in relatively low yielding assets.


3. The importance of the dollar as a vehicle currency in international trade and finance increased, so many European corporations had cash flows in dollars and hence temporary dollar surpluses.


Due to distance and time zone problems as well as their greater familiarity with European banks, these companies preferred to keep their surplus dollars in European banks, a choice made more attractive by the higher rates offered by Euro banks.



The main factors behind the emergence and strong growth of the Eurodollar markets were the regulations on borrowers and lenders imposed by the US authorities which motivated both banks and borrowers to evolve Eurodollar deposits and loans.


Added to this are the considerations mentioned above, viz. the ability of Euro banks to offer better rates both to the depositors and the borrowers and convenience of dealing with a bank that is closer to home, who is familiar with business culture and practices in Europe.
Advertisements


Help Others > Network > Grow


Work with us part time/full time as forum moderator. Email us your resume on careers @ managementparadise.com PLS PRESS THANKS BUTTON IF U LIKED MY POST.

Friends: (0)
Reply With Quote
#  
MBA
Your Friendly Helper
 
www.ManagementParadise.com
Rep Power: 10MBA Helper
Automatic Reply for links related to your post

Hello, I am your friendly Helper. Check the related links below which might be of your interest.
Not a Member Yet ?? Sign Up Now. Click Here and If you are looking for something? Search the Forums

Do you need help with your Research Report ? Ask for Help or Help Others and create your network. Give back to the community by sharing your knowledge in terms of notes, research reports, discussions, articles etc..
Help Yourself and Help Others
Ask us, we are here to help


Related to Growth of Euro Currency Market
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Difference Between Euro Credit and Euro Bond Market Abhijeet S Financial Management ( FM ) 1 June 13th, 2015 08:33 PM
EURO CURRENCY MARKET [email protected] PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT 0 January 27th, 2010 12:30 PM
Euro - A one Currency bb7bb217 PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT 0 December 2nd, 2009 09:16 PM
Will Euro or Yen will replace Dollar as the global currency? Deepak Narayanan HOT Debates - The Big Fight 4 June 18th, 2008 02:23 AM
Euro could replace Dollar as a reserve currency anant1a General Talks 0 October 30th, 2007 11:59 AM
 
Re: Growth of Euro Currency Market
Old
 (2 (permalink))
Pandey Bhoopendra
Bhoopendra is on a distinguished road
 
Bhoopendra
Student of BMM
Mumbai, Maharashtra
Management Paradise Guru
Status: Offline
Posts: 3,849
Join Date: Jun 2012
Re: Growth of Euro Currency Market - June 4th, 2015

Hello Abhi, Euro currency is highly valuable and India is far behind to reach there but, yet we Indians are thriving hard to make it happen and soon this dream will become reality. Here is the link which will enlighten your concept more related to currency market and simultaneously for us too. Here we go
EURO CURRENCY MARKET
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
currency, euro, growth, market

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


Login
Forgot Password?  New User?
  

» Recent Threads

AIB new video: Is Irfan...
Last post by Pandey Bhoopendra
1 Hour Ago 11:25 PM
0 Replies
5 Perfectly Timed Photos...
Last post by Pandey Bhoopendra
2 Hours Ago 10:33 PM
0 Replies
There is No Need of CV...
Last post by Pandey Bhoopendra
2 Hours Ago 10:13 PM
0 Replies
One Simple Step to Make...
Last post by Pandey Bhoopendra
3 Hours Ago 08:43 PM
0 Replies
7 Facts You Need To Know...
Last post by Pandey Bhoopendra
6 Hours Ago 06:41 PM
0 Replies
5 Inspirational Quotes...
Last post by Pandey Bhoopendra
6 Hours Ago 05:46 PM
0 Replies
15 BOOKS THAT EVERY...
Last post by Pandey Bhoopendra
8 Hours Ago 04:00 PM
0 Replies
5 Marketing Lessons to...
Last post by Pandey Bhoopendra
9 Hours Ago 02:48 PM
0 Replies
Best Wittiest Replies...
Last post by Pandey Bhoopendra
10 Hours Ago 02:27 PM
0 Replies
Brother of Zimbabwe's...
Last post by Maya Raichura
1 Day Ago 05:03 AM
0 Replies
After Cecil, second lion...
Last post by Maya Raichura
1 Day Ago 01:01 AM
0 Replies
UFC Fight: Ronda Rousey...
Last post by Pandey Bhoopendra
2 Days Ago 11:59 PM
0 Replies
5 Coincidence Photos...
Last post by Pandey Bhoopendra
2 Days Ago 11:24 PM
0 Replies
7 Beautiful and Dazzling...
Last post by Pandey Bhoopendra
2 Days Ago 10:43 PM
0 Replies
German Girls Dubsmash on...
Last post by Pandey Bhoopendra
2 Days Ago 09:36 PM
0 Replies

» Ads






ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in