3962, "The Euro-currency Control Act of 1979," in order to "establish reserve requirements on certain Eurocurrency
liabilities." (53) The bill was motivated by "the excessive growth in the Eurocurrency
market, a disproportionate share of which [was] comprised of U.S.
Firstly, given common risks and costs, the "law of one price" suggests that all offshore trading centers will offer identical deposit rates for the same Eurocurrency
. When this is the case, their risk premia will obviously be identical.
"Mean Reversion of Interest Rates in the Eurocurrency
Market," Oxford Bulletin of Economics and Statistics, 63, 4, 2001, pp.
Euro-denominated financial instruments such as Eurocurrency
deposits and Eurobond funds are gaining popularity among Japanese investors.
In these chapters the basics of financial market deregulation, the introduction of the Euro, export payment terms, the use of Eurocurrency
, foreign taxation, and hedging are outlined and explained in readily accessible and understandable explanations supported by simple worked examples.
The 1990 reserve requirement reduction eliminated reserve requirements on large, nonpersonal time deposits and net eurocurrency
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
The reserve requirements on Eurocurrency
liabilities have been zero since 12/27/90 (see Federal Reserve Bulletin, May 1998, p.
This is not surprising since it is the center of world's Eurocurrency
markets and the majority of banks are foreign owned.
 Also, Eurocurrency
markets provide liquidity without the political and economic restrictions Fund borrowing entails.
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.