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Eurocurrency Deposit

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Eurocurrency deposit
A short-term fixed-rate time deposit denominated in a currency other than the local currency (e.g., U.S. dollars deposited in a London bank).

Eurocurrency Deposit
A short-term certificate of deposit with a fixed interest rate made in a currency outside the jurisdiction of the issuing central bank. For example, one may purchase a CD in U.S. dollars and deposit it in a bank in Great Britain. Eurocurrency deposits help persons and businesses hedge against short-term fluctuations in exchange rates.


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INTRODUCTION The difference between the offshore Eurocurrency deposit rate and domestic onshore deposit rate for the same currency is frequently positive.
The Kb's portfolio holdings are heavily concentrated in long-term investments in international blue-chips, top-quality bonds such as US Treasuries or UK gilts, eurocurrency deposits and in real estate in Europe and the US.
 
 
 
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