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5 votes

What is the definition of Eurodollar?

The definition of Eurodollar is (see Investopedia): The term eurodollar refers to U.S. dollar-denominated deposits at foreign banks or at the overseas branches of American banks. They are distinct ...
1muflon1's user avatar
  • 57k
3 votes
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Why would a common currency such as the Euro that can't be devalued be incentive for banks to lend money to a country?

When you lend Spain 10 million Deutsche marks, the loan is denominated in a foreign currency: they have to return you 10 million Deutsche Marks (ignoring interest for the moment). But the Spanish earn ...
S Lee's user avatar
  • 46
3 votes

Where does the euro/dollar rate data prior to 2002 come from?

I could not find a source for the google exchange rate, but my best guess is that it is based on ECU (European Currency Unit). ECU was predecessor of euro set up in 1979. When Euro was set up it ...
1muflon1's user avatar
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2 votes
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Eurodollars - the real reason for the "Greenspan conundrum?"

Too long for a comment I am afraid. Maybe I misunderstand something, but ED are essentially short term. So if the FFR (contrary to what Greenspan expected) does not affect long term rates, why should ...
AKdemy's user avatar
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2 votes
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What, in the most literal sense, are eurodollars?

They actually literary are a deposit accounts of US dollars outside US. Also no those foreign banks will not generally have accounts at Fed. In fact one of the reasons why eurodollar deposits pay ...
1muflon1's user avatar
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1 vote
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Eurodollar exercise

I find it hard to believe the professor never discussed any of these formulas but expects you to compute it - unless it is a Matlab course where teh professors expects you to search Mathworks a bit (e....
AKdemy's user avatar
  • 4,122
1 vote

Why does the dollar seem weak?

FX is essentially a random walk, especially USD. You can look here for a lot more details. In essence, you can always tell stories afterwards, like people expected that move and it was already priced ...
AKdemy's user avatar
  • 4,122
1 vote

Relationship between Treasury yield and dollar

I'll try my best to provide an explanation of the link between treasury yield and exchange rates. However, my answer is not a reference, but just a piece of a dialogue. First, I'll start by explaining ...
Alexandre Michaud's user avatar
1 vote

Which institutions are in the eurodollar market?

Eurodollars are, by definition, held (on the liability side) inside the banking system. They're US dollar deposits held either outside the US or inside the US via an International Banking Facility. On ...
dismalscience's user avatar
1 vote
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How will the Brexit affect the Euro and the Pound?

I think you are right to assume that both the EUR and the GBP are going to fall. Fall in investment, uncertainty about the future, trouble exporting, and facing the high probability of loss of at ...
Quandary's user avatar
  • 206
1 vote

How will the Brexit affect the Euro and the Pound?

It depends. (As all things do.) I'm personally of the opinion that this will not result in any major long-run changes in the value of the Euro. This will, however, negatively affect the pound. Most ...
Kontorus's user avatar
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