Eurocurrency

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.

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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.

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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."

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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.