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Glite Dictionary
Eurocurrency

Eurocurrency

1 7.8
Money from one country that banks in other countries hold to lend or borrow
  • noun
  • /ˈjʊroʊˌkɜrənsi/
  • Specialized
: eurodivisa
  • Many international loans are provided in Eurocurrency to avoid national banking regulations.

Examples

  • The Asian financial crisis was partly triggered by excessive Eurocurrency lending.

  • The bank specializes in Eurocurrency transactions.

  • Large corporations often borrow in Eurocurrency markets to secure better interest rates.

  • Many investors prefer Eurocurrencies for international trade.

  • The bank offered attractive interest rates for Eurocurrency deposits to encourage foreign investments.

  • Many companies prefer to borrow in Eurocurrency because it can be cheaper than local bank loans.

  • Investors often track Eurocurrency markets to gauge the economic conditions of major industrial nations.

Surface Forms

Eurocurrency singular
Eurocurrencies plural

Morphology

Eurocurrency = currency (semi-transparent) = euro + currency

Formally built from 'euro' + 'currency', but in usage it names a specialized financial concept (currencies held offshore) and can mislead learners to think it means 'European currency'.

Etymology

Eurocurrency comes from the parts Euro- ('Europe') and currency ('money'). It was first used for money of major countries kept in banks outside their home countries, so today it means money held abroad and used for international lending.