Eurocurrency

Eurocurrency refers to money deposited in banks outside the country where the currency is typically used, often in European banks. For example, US dollars held in a bank in London are considered Eurodollars. This system allows for easier international trade and investment, as it provides businesses and governments access to foreign capital and potentially better interest rates. The term "Euro" historically links to Europe, but Eurocurrency can involve any currency outside its home country. It facilitates global financial transactions and investments, enhancing liquidity and efficiency in the international money market.