What is the Eurodollar?
Definition:
US dollar denominated deposits at overseas banks or overseas branches of US banks. Eurodollars are not subject to the usual US banking regulations. Originally, Eurodollars were held almost exclusively in Europe; hence the name. Since the Eurodollar market is relatively free of regulation, banks in the Eurodollar market can operate on narrower margins than banks in the United States.
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