Eurodollar

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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."
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Eurodollar

see EUROCURRENCY MARKET.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
(28) Realizing that the dollar was undervalued and that adjustments would soon be made, European central banks absorbed Eurodollars in dramatic amounts immediately prior to the 1971 decision to shift from gold-fixed to floating exchange rates.
(31) Since dollars are frequently used to settle international trade contracts, possessing Eurodollars can facilitate payments: "[T]itles to Eurodollar deposits, to the extent that they are readily transferable, have the potential to be utilized as the medium of contractual settlement at least for international contractual obligations." DAVIDSON, supra note 13, at 221; see also Libyan Arab Foreign Bank v.
The largest part of the Eurobond market has historically been and remains today Eurodollar bonds.
The IMM and SIMEX also trade a Eurodollar interest rate futures contract based on three-month LIBOR.
In reality, the funds became part of the vast expansion of the Eurodollar system.
Within twenty-one months of their inauguration, these International Banking Facilities had nearly $200 billion in Eurodollar deposits.
Like CDs, virtually all Eurodollars are time deposits.
Eurodollars are created when dollar balances are transferred from a bank branch in the United States to a bank branch abroad.
The relation between the three-month eurodollar rate at expiry and the final settlement price ties the futures price at all dates to expectations of this interest rate.
For concreteness, consider what would happen if the First Bank of Des Peres (FBDP) sold a three-month eurodollar futures contract for a quoted price of $97 on June 7, 2004, for a contract expiring on September 13, 2004.
LIBOR is an index or snapshot of the eurodollar market at a particular point of time.
We examine the relative movement of interest rates on Treasury bill futures contracts and eurodollar futures contracts around the time of this announcement.