This article reports the results of the latest half-yearly enquiry into the euro-currency maturity position of London banks.
Between March and September 1973 the euro-currency market was still affected by international currency disturbances, particularly around the middle of the period when the deutschemark was revalued. For most of the time the US dollar was weak in terms of the main continental currencies. Interest rates rose strongly in Europe as countries generally attempted to tighten monetary policy and contain inflationary pressures. In the United States interest rates also rose rapidly until towards the end of the period. Euro-dollar rates followed a similar pattern, the three months' rate rising from a little over 8½% at the beginning of April to a peak of over 11½% in August, before easing during the second half of September to close at about 10½%.
The euro-currency business of banks in London - maturity analysis as at end-September 1973