How is Euro currency market regulated? - ProProfs Discuss
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How is Euro currency market regulated?

Asked by Fabrisgs, Last updated: Sep 11, 2021

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S. Hughes

S. Hughes

S. Hughes
S. Hughes

Answered Jun 14, 2018

The Eurocurrency market is regulated much differently than an individual country’s money markets or banks. It has also been said that this market “provides the most convenient financial service at the lowest possible cost”. The reason for the lowest cost is that this market is not strictly regulated.

I do not understand all the regulations but I believe there are two regulations – reserve requirements and deposit insurance premiums with which the Eurocurrency market does not have to comply. Over the years, some people/countries have advocated for more regulation but because many countries conduct their monetary policies in different ways, getting international agreement has been very difficult.

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fabrisgs

fabrisgs

fabrisgs
Fabrisgs

Answered Sep 22, 2017

It is less regulated than domestic banking system.
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