Eurodollar Deposit

Definition

Eurodollar Deposit. A certificate of deposit with a fixed interest rate issued in U.S. dollars outside the jurisdiction of the Federal Reserve, held at banks outside of the United States, including branches of U.S. banks located outside of the U.S.

Issues and Challenges

From riskglossary.com (part of Money Market Deposit article): The Eurodollar market has become global, so its name is a bit of a misnomer. A bank in Japan or Singapore may accept dollar deposits, but these are still called Eurodollar deposits. The market also includes other currencies, so there are Eurosterling, Euroyen, Euroswiss, etc. To confuse matters, in 1999, the European Union embraced the euro as its new currency, so you can now hear of Euroeuro. Eurocurrency is the general term for any currency deposited in bank branches outside countries where it is the national currency. Comment: Should this not rather be labeled as Eurocurrency Deposit, corresponding with the above definition? Eurodollar deposit would be a dollar-denominated sub type of this.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.