Eurocurrency Market

Eurocurrency market

The money market for borrowing and lending currencies that are held in the form of deposits in banks located outside the countries where the currencies are issued as legal tender.

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Eurocurrency Market

The market for investments denominated in currencies other than the one in which the investment is traded. 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. The eurocurrency market may also refer to the trading of eurocurrency bonds. 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").