Eurodollar

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Related to Eurodollar: Eurodollar Bond, Eurodollar Deposits

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

U.S. dollar deposits in banks outside the jurisdiction of the Federal Reserve; that is, outside the United States. Eurodollar futures contracts, which are based on eurodollar desposits, are a highly liquid investment traded on the Chicago Mercantile Exchange. Prices are determined by forecasting the three month USD LIBOR interest rate. Likewise, eurodollar sweeps are a popular short-term investment for large businesses.

The 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."

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.

Eurodollar.

Eurodollars are US currency deposited in banks outside the United States but not always in Europe. Certain debt securities are issued in eurodollars and pay interest in US dollars into non-US bank accounts. Eurodollars are a form of eurocurrency.

Eurodollar

see EUROCURRENCY MARKET.

References in periodicals archive ?

This Appendix provides further details on Eurodollar contracts and the estimation of their options-implied probability density function.

How Do FOMC Projections Affect Policy Uncertainty?

Given this lack of understanding, it should come as no surprise that the Eurodollar market is largely unregulated.

The monetary fifth column: the Eurodollar threat to financial stability and economic sovereignty

The very existence of the Eurodollar system is based on the fact that it can offer higher deposit rates and lower loan rates than in the U.

Tariff on Imported Eurodollars: An Alternative RegD Perspective

Several features make the eurodollar market very appealing as a source of funds:

Loan pricing options: advantages and disadvantages for corporate borrowers

International political crises often throw financial markets into a tailspin, especially one so reliant upon the speed of transactions and liquidity of funds as the Eurodollar market.

Freezer burn: United States extraterritorial freeze orders and the case for efficient risk allocation

In reality, the funds became part of the vast expansion of the Eurodollar system.

The global funny money game

Open interest in Eurodollar options also increased by 1.

CME Group reaches record trading volume for Euro

As long as investors continue to be prevented from pricing in ECB action, the major downside risk to the Eurodollar today will be the US economic data being released this afternoon.

FOREX: Stocks unaffected by global economic concerns

One way of measuring the market's expectations about changes in FOMC policy is to examine Eurodollar and fed fund futures.

Measuring market beliefs about the fed policy rates

Kommunalbanken Norway plans three year eurodollar bond

Targeted to market professionals and individual investors, the letter includes examination of support, resistance and momentum for such financial instruments as Dow Jones Industrial Average, NASDQ Composite, 10-Year Yield, Eurodollar interest rates, Nymex crude, and Euro and Japanese Yen interest rates.