Eurocurrency


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Related to Eurocurrency: Eurocurrency market, Eurocurrency deposit

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 ?
3962, "The Euro-currency Control Act of 1979," in order to "establish reserve requirements on certain Eurocurrency liabilities.
Secondly, if one ignores offshore deposit risk and assumes an equal cost advantage in acquiring offshore deposits, the difference between Eurocurrency rates for two different currencies traded within a single Eurocurrency trading center must logically be explainable by the Fisher effect, i.
Because the Eurocurrency market is so heavily concentrated in London, there is less likely to be a significant link between this measure of intermediation and domestic output in the United Kingdom when compared to Germany or the United States.
The Eurocurrency Standing Committee, a group of senior central bank officials sponsored by the G-10 governors of central banks, published a report in 1994.
To support this argument, Wriston cites the history of the eurocurrency markets:
Consequently, short-term funding costs for nearly all Japanese banks increased sharply, as manifested by additional premiums on yen- and dollar-denominated libor deposits that Japanese banks had to pay in order to borrow in the Eurocurrency markets.
Interest rates over the coming year are set in line with the implied rates in the Eurocurrency market, with base rates possibly falling to 6 per cent before starting to rise to around 6 1/2 per cent by the end of next year.
the Japanese yen and the German mark, or a mark-based Eurocurrency through the strengthening of the European Monetary System (EMS).
Marston compares these covered interest differentials with uncovered interest differentials in the Eurocurrency markets, which are free of capital controls.
World Trade Center's Association Network trade leads, market reports, currency exchange rates and trends, commodity forward contracts, and Eurocurrency interest rates.
As such, Britain has rejected the proposal of a Eurocurrency and European central bank.
Growth of Eurocurrency market, the problems related with its present form, and efficiency of foreign markets have also been examined.