eurocurrency


eurocurrency
A foreign currency deposit at a bank located outside the country where the currency is issued as a legal tender. For example, dollars deposited in a bank in Switzerland are eurodollars, yen deposited at a US bank are euroyen, etc. The deposit need not be held at a European bank in Europe. Eurocurrency is used for lending and borrowing; the eurocurrency market often provides a cheap and convenient form of liquidity for the financing of international trade and investment. The main borrowers and lenders are the commercial banks, large companies, and the central banks. By raising funds in eurocurrencies it is possible to secure more favourable terms and rates of interest, and sometimes to avoid domestic regulations and taxation. The deposits and loans were initially on a short-term basis but increasing use is being made of medium-term and long-term loans, particularly through the raising of eurobonds. This has to some extent replaced the syndicated loan market, in which banks lent money as a group in order to share the risk.

Accounting dictionary. 2014.

Look at other dictionaries:

  • Eurocurrency — Eu·ro·cur·ren·cy /ˌyu̇r ō kər ən sē/ n pl cies: currency (as from the U.S. and Japan) held outside its country of origin and used in the money markets of Europe Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Eurocurrency — [yoor′ō kʉr΄ən sē] n. pl. Eurocurrencies deposits denominated in the currency of, but held in banks outside of, their country of origin, esp. in Europe …   English World dictionary

  • Eurocurrency — instrument issued outside your country, but denominated in your currency. A Eurodollar is a certificate of deposit in U.S. dollars issued in some other country (though mainly traded in London). A Euroyen is a CD issued in yen outside Japan.… …   Financial and business terms

  • eurocurrency — A foreign currency deposit at a bank located outside the country where the currency is issued as a legal tender. For example, dollars deposited in a bank in Switzerland are eurodollars, yen deposited at a US bank are euroyen, etc. The deposit… …   Big dictionary of business and management

  • Eurocurrency — / jυərəυkʌrənsi/ noun any currency used for trade within Europe but outside its country of origin, the eurodollar being the most important ● a Eurocurrency loan ● the Eurocurrency market …   Dictionary of banking and finance

  • Eurocurrency — Currency deposited by national governments or corporations in banks outside their home market. This applies to any currency and to banks in any country. For example, South Korean won deposited at a bank in South Africa, is considered eurocurrency …   Investment dictionary

  • Eurocurrency — noun Date: 1963 moneys (as of the United States and Japan) held outside their countries of origin and used in the money markets of Europe …   New Collegiate Dictionary

  • Eurocurrency — /yoor oh kerr euhn see, kur , yerr /, n., pl. Eurocurrencies. funds deposited in the bank of a European country in the currency of another country. Also called Euromoney /yoohr euh mun ee, yerr /. [EURO + CURRENCY] * * * …   Universalium

  • eurocurrency — Tradúzcase por eurodivisas …   Diccionario español de neologismos

  • Eurocurrency — ⇡ Eurodollar …   Lexikon der Economics


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