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Eurocurrency Market is a market where currency is held by banks outside of the country and then borrowed and lent by banks in Europe. It is often utilized by the extremely wealthy and large firms.

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What are characteristics of the Eurocurrency market?

international banking


What are the feature of eurocurrency market?

non governmental intervention


What is Eurocurrency market?

Euro currency is the time deposit of money in an international bank located in a country different from the country that issued the currency. However the Eurocurrency market is the money market for borrowing or lending currencies that are in the form of deposits in an international bank and is used to execute domestic transaction.


What instruments are available in the money market?

Treasury bills and bonds, federal agency securities, federal funds, negotiable certificates of deposits, commercial paper, bankers' acceptances, repurchase agreements, eurocurrency deposits, eurocurrency loans, futures instruments, and options


Why eurocurrency market has developed and grown so rapidly?

The eurocurrency market has developed and grown rapidly due to several key factors, including the globalization of trade and finance, which has increased the demand for more efficient cross-border transactions. Additionally, the eurocurrency market offers borrowers and lenders greater flexibility and higher interest rates compared to domestic markets, attracting participants seeking better investment opportunities. Regulatory arbitrage, where institutions seek to avoid domestic regulations and capital controls, has also fueled its growth. Finally, advancements in technology have facilitated faster and cheaper transactions, further enhancing the market's appeal.


What is the functions of a capital market?

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What are euro currency markets?

Eurocurrency markets refer to the global financial markets where currencies are deposited and traded outside their country of origin, often in the form of eurocurrency, which is any currency held in banks outside its home country. These markets facilitate international trade and investment by allowing for easier access to foreign currencies for businesses and investors. Eurocurrency deposits are typically less regulated than domestic deposits, leading to potentially higher interest rates. The most well-known example is the Eurodollar market, where U.S. dollars are held in banks outside the United States.


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