Explain the four main systems of International Finance Market which ensure availability of foreign currency.

In international financial market, the availability of foreign currency is assured under four main systems: Euro currency market : Here funds are made available in the form of loans through syndicated Euro credits/instruments known as Floating Rate Notes (FRNS). Interest rates vary every 3 to 6 months based on London Interbank Offered Rate (LIBOR). Syndicated Euro Currency bank loan has developed into one of the most important instruments for international lending. Syndicated Euro credit is available through instruments viz. Term loan and Revolving Line facility. Export Credit Facilities : These are made available by several countries through an institutional frame work in which EXIM Banks play a prominent role. EXIM Bank of India is playing a significant role in financing exports and other off shore deals. International Bond Market : They provide international facilities to raise long term funds by using different types of instruments. The bond market is generally known as Euro bond market. UN Agency financial institutions viz. World Bank and its allied agencies like International Development Association (IDA), International Finance Corporation (IFC), International Bank for Reconstruction and Development (IBRD), etc., Asian Development Bank (ADB) provide finance in foreign currency.