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Eurodollar

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson 0.03 sec.
Eurodollar
U.S. dollar-denominated deposits at foreign banks or foreign branches of American banks. By locating outside of the United States, eurodollars escape regulation by the Federal Reserve Board.

Notes:
Originally, dollar-denominated deposits not subject to U.S. banking regulations were held almost exclusively in Europe hence the name eurodollars. These deposits are still mostly held in Europe, but they're also held in such countries as the Bahamas, Canada, the Cayman Islands, Hong Kong, Japan, the Netherlands Antilles, Panama, and Singapore. Regardless of where they are held, such deposits are referred to as eurodollars.

Since the eurodollar market is relatively free of regulation, banks in the eurodollar market can operate on narrower margins than banks in the United States. Thus, the eurodollar market has expanded largely as a means of avoiding the regulatory costs involved in dollar-denominated financial intermediation.


Eurodollar
Refers to a certificate of deposit in U.S. dollars in a bank that is not located in the U.S. Most of the Eurodollar deposits are in London banks, but Eurodeposits may be anywhere other than the U.S. Similarly, a Euroyen or Euro DM deposit represents a CD in yen or DM outside Japan and Germany, respectively.

Eurodollar
A dollar-denominated deposit made in foreign banks or foreign branches of U.S. banks. Depositors sometimes transfer their funds to European banks in order to take advantage of higher interest rates. The Eurodollar is one type of Eurocurrency.

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You could pay with eurodollars, which are dollar-denominated accounts that could be issued by any bank anywhere in the world.
9961 Money market mutual funds Year and month In M2 In M3 only RPs Eurodollars 2004--January 1.
To be sure, there is an implicit forecast embedded in long-dated oil futures contracts, just as there is an interest-rate expectation in five- and 10-year Treasury notes or Eurodollar futures contracts maturing in 2010.
 
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