Eurocurrency (redirected from Eurocurrencies)
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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."
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 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.