Eurocurrency deposits

Eurocurrency deposits refer to money held in banks outside of the country where the currency is typically used. For example, U.S. dollars deposited in a bank in Europe qualify as Eurodollars. These deposits are not subject to the same regulations as domestic banks and often offer better interest rates. They facilitate international trade and investment by allowing businesses to borrow and save in different currencies, which can help manage currency risk. Essentially, Eurocurrency markets enhance global finance by providing a means to operate with various currencies across borders.