GLOBALISATION

NEW TECHNOLOGIES

UNDERGROUND ECONOMIES

FINANCIAL DE-REGULATION

PROGRESS OF EUROMARKET

UNDER REGULATED FINANCE CENTRES

Some 85% of international banking and bond issuances takes place in the Euromarket, effectively a stateless offshore zone. 

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A key incentive for the development of the Euromarket, and continued existence of such a market, is that it is free from the regulatory environment (and sometimes political or other country-specific risks) of the "home currency" country. The "euro-" prefix in the term arose because originally such currencies were held in Europe, but that is no longer solely the case, and a euro-currency can now be held anywhere in the world that local banking regulations permit. The euro-currency market is a major source of finance for international trade because of ease of convertibility and the absence of domestic restrictions on trading.