eurocurrency
Noun: - Currency deposited in banks outside its country of origin: Eurocurrency refers to any major currency (such as US dollars, Japanese yen, or British pounds) that is deposited in a bank located outside the country which issues that currency. This market facilitates international lending and borrowing.
The term is used primarily in international finance and banking contexts to describe deposits and the market for such funds. - The company borrowed in the eurocurrency market to finance its overseas expansion. - A large volume of eurocurrency transactions are settled in London.
- Eurocurrency Market: The international financial market where eurocurrencies are traded. It is an offshore market, meaning it operates outside the domestic regulations of the currency's country of origin.
- The eurocurrency market is a key source of short-term financing for multinational corporations.
- Eurodollar (n): The most common type of eurocurrency, specifically US dollars deposited in banks outside the United States.
- Eurodollar deposits form the largest segment of the eurocurrency market.
- Offshore currency
- External currency
The prefix "euro-" in this context does not refer exclusively to Europe or the Euro. It historically originated with US dollar deposits in European banks but now applies to any currency held in any foreign bank (e.g., euroyen in Singapore, eurosterling in Tokyo).
- currency of the major financial and industrial countries held in those countries for the purpose of lending and borrowing