Eurocurrency

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Related to Eurocurrencies: Eurocurrency deposit, Eurocurrency market

Eurocurrency

Instrument issued outside your country, but denominated in your currency. A Eurodollar is a Certificate of Deposit in U.S. dollars issued in some other country (though mainly traded in London). A Euroyen is a CD issued in yen outside Japan.

Eurocurrency

Deposits in banks that are denominated in currencies other than the one in which that bank operates. For example, a eurodollar is a U.S. dollar deposit outside the jurisdiction of the Federal Reserve, that is, outside the United States. Eurodollar investments may be traded in any country other than the United States, but are usually traded in London. Likewise, a euroyen is a yen deposit outside Japan, thought it usually refers to a euroyen CD. It is important to note that term has nothing to do with the euro, and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the local central bank, e.g. "euroruble."

Eurocurrency

Funds deposited in a bank when those funds are denominated in a currency differing from the bank's own domestic currency. Eurocurrency applies to any currency and to banks in any country. Thus, if a Japanese company deposits yen in a Canadian bank, the yen will be considered Eurocurrency.

Eurocurrency.

Eurocurrency is any major currency that is deposited by a national government or corporation based outside the country where the bank receiving the funds is located.

For example, Japanese yen deposited in a British bank by a Japanese car manufacturer is considered eurocurrency.

Eurocurrency is used in international trade and to make international loans.

References in periodicals archive ?
After all, Eurocurrencies do not just pose a threat to monetary sovereignty; they pose a threat to global financial stability.
Ultimately this would not be a problem if: (1) the market for Eurocurrencies was not so large that it posed systemic risk if it failed, and (2) Eurocurrencies were not completely beyond the control of the Federal Reserve.
1990) (discussing the reasons that Eurocurrencies can lead to inflation).
where SovPI denotes the price index on sovereign bonds from countries denominating Eurocurrencies j and i expressed in numeraire currency j, EurBk is an index measure of bank credit risk for the sets of Eurobanks trading Eurocurrencies i and j, and DomBk is an index measure of bank credit risk for the sets of domestic banks dealing in the CD markets in countries i and j.
Initial examination of the table shows that the t-statistics for all Eurocurrencies are large and significant for both 1-month and 3-month maturities.
This indicates a structural difference and a lack of harmony between the intra-market pair of sovereign/credit risk premia for the two Eurocurrencies.
This study explores the nature of the difference between Eurocurrency and domestic interest rates in the same currency and the difference in rates between two Eurocurrencies.
In general, we find significant structural differences and a lack of harmony between pairs of risk premia for different Eurocurrencies traded within the same Eurocurrency trading center.