Foreign currency denominated account

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Eurocurrency is the term used to describe deposits residing 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 US dollars residing in a Japanese bank is a Eurocurrency deposit, or more specifically a Eurodollar deposit.^{[citation needed]}

Key points are the location of the bank and the denomination of the currency, not the nationality of the bank or the owner of the deposit/loan.

Today the Eurocurrency and Eurobond markets are active for the reason that they avoid domestic interest rate regulations, reserve requirements and other barriers to the free flow of capital (Butler, 2004, pp. 62-63).

[edit] See also

• Eurodollar
• World currency
• Reserve currency

[edit] References

• Butler, Kirt (2004) Multinational Finance (3rd ed). South Western, Tompson.