Eurodollar

Eurodollars are U.S. dollar-denominated deposits held outside the United States, primarily in foreign banks or financial institutions. These deposits are not subject to U.S. banking regulations, allowing for more flexible and sometimes more attractive lending opportunities. Eurodollars are commonly used by international companies and financial institutions for borrowing, lending, or managing dollar-based transactions across borders. The term doesn’t refer to the Euro currency but rather to the deposits held outside the U.S. banking system, facilitating global financial activity in dollars.