Eurocurrency

From Wikipedia, the free encyclopedia
Jump to: navigation, search
"Eurobanks" redirects here. For other uses, see Eurobank.

Eurocurrency is deposits in banks that are located outside the borders of the country that issues the currency the deposit is denominated in. For example a deposit denominated in Japanese Yen held in a Brazilian bank is a Eurocurrency deposit. Likewise a deposit denominated in US dollars held in a Singapore bank is a Eurocurrency deposit, or more specifically a Eurodollar deposit.

Eurocurrency does not have to involve either the euro currency or the eurozone.

Today the Eurocurrency and Eurobond markets are active because they avoid domestic interest rate regulations, reserve requirements and other barriers to the free flow of capital.[citation needed]

Currencies[edit]

The four main Eurocurrencies are the US dollar, the eurozone euro, the British pound and the Japanese yen; the currencies of the major economies of the world.[citation needed]

Eurobanks[edit]

"Eurobanks" redirects here. For other uses, see Eurobank (disambiguation).

A eurobank is a financial institution anywhere in the world which accepts deposits or makes loans in any foreign currency.[1]

See also[edit]

References[edit]

  • Butler, Kirt (2008) Multinational Finance (4th ed). South Western, Tompson.