These observations are borne out by the trade statistics. About one-half of the external trade of the euro-area member states is intra-euro-area trade. 4  BIS Review 98/2001  VIII It is in the financial markets that the benefits of a common European currency are to be felt most clearly.
The implications of the euro are obvious: rising liquidity, deepening and widening of the money, bond and stock markets, reduction of transaction costs and abolition of currency risks. The euro speeds up financial market integration. Correspondingly, the functioning of the European Monetary Union depends heavily on a high degree of financial market integration. Its smooth functioning enables monetary transmission to work.