Eurodollars

Eurodollars are U.S. dollar-denominated deposits held outside the United States, primarily in banks located abroad. These deposits are not subject to U.S. banking regulations, making them a flexible and attractive option for international borrowers and investors. Eurodollars are often used for large-scale transactions, loans, and funding purposes, and they influence short-term interest rates worldwide. Despite the name, Eurodollars are not limited to Europe; they are globally distributed, and their market plays a key role in international finance by providing a source of dollar liquidity outside the U.S. banking system.