Eurodollar

Eurodollar,

Definition of Eurodollar:

  1. A US dollar deposit held in Europe or elsewhere outside the US.

  2. US currency or funds held in banks outside the US in Europe or anywhere else. Eurodollars are used commonly for settling international transactions.

  3. The fact that the eurodollar market is relatively free of regulation means such deposits can pay higher interest. Their offshore location makes them subject to political and economic risk in the country of their domicile; however, most branches where the deposits are housed are in very stable locations.

  4. The term eurodollar refers to U.S. dollar-denominated deposits at foreign banks or at the overseas branches of American banks. Because they are held outside the United States, eurodollars are not subject to regulation by the Federal Reserve Board, including reserve requirements. Dollar-denominated deposits not subject to U.S. banking regulations were originally held almost exclusively in Europe, hence the name eurodollar. They are also widely held in branches located in the Bahamas and the Cayman Islands.

How to use Eurodollar in a sentence?

  1. The eurodollar market is one of the world's biggest capital markets and consists of sophisticated financial instruments.
  2. Eurodollars refer to dollar-denominated accounts at foreign banks or overseas branches of American banks.
  3. The Eurodollar market.

Meaning of Eurodollar & Eurodollar Definition