Eurocurrency deposit

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.
References in periodicals archive ?
The difference between the offshore Eurocurrency deposit rate and domestic onshore deposit rate for the same currency is frequently positive.
CD,i]) represents the sum of the sovereign risk premium component of the Eurocurrency deposit rate and the difference in credit risk premia between the Eurobank deposit and the domestic bank deposit rates.
In their study of eurocurrency deposit rates, Barkoulas and Baum [1997a, p.
Fractional Differencing Modeling and Forecasting of Eurocurrency Deposit Rates, "Journal of Financial Research, 20, 3, Fall 1997a, pp.
120) New York and London are the largest of these centers, and neither the Bank of England nor the Federal Reserve has reserve requirements on Eurocurrency deposits.
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.
10) Eurodollars are a subset of Eurocurrency deposits, those liabilities of banks generally, denominated in any currency,(11) outside the jurisdiction of that currency.
The issuance of these "Yankee CDs" resulted from the reduction in December of the reserve requirement on nonpersonal time deposits and net Eurocurrency deposits from 3 percent to zero.
The growth of Eurocurrency deposits has facilitated Eurodollar loans.
00%, and (b) a eurocurrency rate ("LIBO") determined by reference to the costs of funds for eurocurrency deposits in dollars in the London interbank market for the interest period relevant to such borrowing adjusted for certain additional costs.