Eurodollar

Eurodollars are U.S. dollars held in time deposit accounts in banks outside the United States, which are not subject to the legal jurisdiction of the U.S. Federal Reserve. Consequently, such deposits are subject to much less regulation than deposits within the U.S.^{[citation needed]} The term was originally applied to U.S. dollar accounts held in banks situated in Europe, but it expanded over the years to cover US dollar accounts held anywhere outside the U.S. Thus, a U.S. dollar-denominated deposit in Tokyo or Beijing would likewise be deemed a Eurodollar deposit (sometimes an Asiadollar). The offshore locations of the Eurodollar make it exposed to potential country risk and economic risk.^[1]

There is no connection with the euro currency of the European Union. More generally, the euro- prefix can be used to indicate any currency held in a country where it is not the official currency, broadly termed "eurocurrency", for example, Euroyen or even Euroeuro.