euro curency market
EURO CURRENCY MARKETS:
EURO CURRENCY MARKETS
Learning objectives:
Learning objectives Euro Money Euro Deposits Euro Currency Euro Banking/ International Banking Loan Syndicate (Syndication)
Euro Money:
Euro Money Concept of money Why Euro money? How it is created? Reasons for growth of the market.
Concept of Money:
Concept of Money Capable of being used as medium of exchange Possible to store value through the asset Serves as unit of account It can be used as means of deferred payment.
Why Euro Money?:
Why Euro Money? The international operations in capital markets & the need to undertake foreign exchange transactions in order to consummate the transfer of financial claims & that there is absence of any unified world legal framework for settlement of such claims, the market came into existence.
How Euro money is created?:
How Euro money is created? A national currency becomes part of offshore currency market when it is transferred to a bank outside its own monetary system, i.e. transferred to a bank outside the nation in question. Ex-US dollar held in Paris qualifies as Euro currency.
Reasons for the growth of the Euro money market.:
Reasons for the growth of the Euro money market. Depositors receive better terms than they can otherwise obtain at home (i.e. better interest rates on deposits than home interest rates). Borrowers can borrow more , possibly at lower interest rates than they can at home ( on shore).
Slide 8:
Euro-money comprises of Euro deposits and Euro-currency.
Euro Deposits:
Euro Deposits Concept Nature Reasons for the growth of the market.
Euro Deposits:
Euro Deposits The deposits denominated in currencies made outside the domestic banking system operation are called as Euro deposits. Thus, when a currency deposit is made in a bank outside the jurisdiction of the central bank which issued the currency is termed as Euro deposit. More risky as beyond the control of domestic banking authority.
Nature
EURO CURRENCY MARKETS
Learning objectives:
Learning objectives Euro Money Euro Deposits Euro Currency Euro Banking/ International Banking Loan Syndicate (Syndication)
Euro Money:
Euro Money Concept of money Why Euro money? How it is created? Reasons for growth of the market.
Concept of Money:
Concept of Money Capable of being used as medium of exchange Possible to store value through the asset Serves as unit of account It can be used as means of deferred payment.
Why Euro Money?:
Why Euro Money? The international operations in capital markets & the need to undertake foreign exchange transactions in order to consummate the transfer of financial claims & that there is absence of any unified world legal framework for settlement of such claims, the market came into existence.
How Euro money is created?:
How Euro money is created? A national currency becomes part of offshore currency market when it is transferred to a bank outside its own monetary system, i.e. transferred to a bank outside the nation in question. Ex-US dollar held in Paris qualifies as Euro currency.
Reasons for the growth of the Euro money market.:
Reasons for the growth of the Euro money market. Depositors receive better terms than they can otherwise obtain at home (i.e. better interest rates on deposits than home interest rates). Borrowers can borrow more , possibly at lower interest rates than they can at home ( on shore).
Slide 8:
Euro-money comprises of Euro deposits and Euro-currency.
Euro Deposits:
Euro Deposits Concept Nature Reasons for the growth of the market.
Euro Deposits:
Euro Deposits The deposits denominated in currencies made outside the domestic banking system operation are called as Euro deposits. Thus, when a currency deposit is made in a bank outside the jurisdiction of the central bank which issued the currency is termed as Euro deposit. More risky as beyond the control of domestic banking authority.
Nature