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.
The 1990 reserve requirement reduction eliminated reserve requirements on large, nonpersonal time deposits and net eurocurrency liabilities.
In January 1986, 700 Japanese companies were authorized to issue foreign currency convertible bonds in Europe, while only 80 were authorized to issue unsecured straight Eurocurrency bonds.
The reserve requirements on Eurocurrency liabilities have been zero since 12/27/90 (see Federal Reserve Bulletin, May 1998, p.
16] Also, Eurocurrency markets provide liquidity without the political and economic restrictions Fund borrowing entails.
This is not surprising since it is the center of world's Eurocurrency markets and the majority of banks are foreign owned.
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.
The positive response of donors to Government policies, the launching of the Eurocurrency and the weakening of the American economy have all supported this assumption.
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:
The framework for exchange rate co-operation between the eurocurrency area and other union states is described in Box 2.