The document discusses the Euro market, which facilitates trade between member nations of the European Union through a common currency (the Euro) and the free movement of goods and services. It describes the Euro market as comprising multiple nations that use the Euro, acting as a major source of international trade. Additionally, it provides details on related terms like the Eurocurrency market, Euro banks, and features of the Euro market such as being international, independent, competitive, and a short-term inter-bank 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
• Using 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

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

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

8. • 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

9. 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.

10. 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

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

12. 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.

13. 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.