Tuesday, May 12, 2009


Eurodollars are U.S. dollars deposited in banks located in other countries. foreign banks and offshore branches of U.S. banks hold dollar deposits to service firms engaged in international trade, as well as for other purposes.U.S. banks sometimes borrow Eurodollars when they need short-term funds. the growth of the Eurodollars market in the 1970s was spurred by the relative lack of regulations on these funds, including the absence of regulations requiring banks to hold reserves against Eurodollars loans . that Eurodollars increased from $14 billion in 1976 to $56 billion in 1992.

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