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.

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 ?
Part V discusses possible solutions and recommends that the United States advance an international scheme imposing reserve requirements on institutions holding Eurodollars and provide for an international clearinghouse for Eurodollar transactions.
At the most basic level, Eurodollars are "deposit liabilities, denominated in dollars, of banks outside the United States.
Like CDs, virtually all Eurodollars are time deposits.
99) Given the manner in which Eurodollars are created and transactions are effected and the enormity of the market, however, such staunch disregard of economists' analyses could be devastating.
177) Managed account arrangements may be seen as transaction costs(178) incurred in attempts to protect against the uncertainty of legal results and the risk of political regulation, without compromising depositors' returns from Eurodollars, or credit security from American banks.
198) By investing in Eurodollars in London, for example, depositors are compensated with higher returns for the risk that action may be taken(199) by the currency-issuing country (United States), bank-chartering country (also United States) and host country (England).
Fixated on achieving short-term financial returns, currency traders in the money center banks, armed with footloose Eurodollars, engage in destabilizing foreign exchange speculation by attacking the weak currencies and supporting the strong ones.
This will make it possible for governments to coordinate such economic parameters as interest and exchange rates by regulating the rate of future growth of Eurodollars.
Because the relationships between the different Eurodollar prices are highly dynamic, cointegration is key to determining optimal order placement," said Robert Almgren, Quantitative Brokers' co-founder and head of research.
QB's goal is to minimize market impact (slippage) on CME Eurodollar and Treasury futures orders, including outright, spread & butterfly transactions through algorithmic execution.
OTC BB: ECTS), is seeking a European partner to help it establish banking connections in Europe to accommodate Eurodollar transfers.
recognizes that the introduction of a new single European currency in 1999 would mean that a secondary market will emerge for product purchases in the new Eurodollar currency.