Eurodollar market

Definition

The European market where US dollars can be deposited and loaned for short periods of time. In this market, loans are made in the form of Eurodollars and products are denominated in the US currency. However, because transactions are typically $1 million or more, only large institutional investors participate in this market. Also, because this market is largely unregulated, banks can lend out 100 percent of the deposits they receive and therefore offer extremely attractive interest rates.

Use Eurodollar market in a sentence

In France, the major medical company was able to take out a loan in US dollars through the Eurodollar Market.

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EURODOLLAR MARKET The European market where US dollars can be DEPOSITED and loaned for short periods of time. In this market, loans are made in the form of Eurodollars and products are denominated in the US currency

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EURODOLLAR MARKET U.S.-dollar denominated deposits at foreign banks or foreign branches of American banks. By locating outside of the United States, eurodollars escape regulation by the Federal Reserve Board.

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Eurodollar floating-rate certificate of deposit Euroequity issues