Eurodollars
Eurodollars are deposits denominated in United States dollar at banks outside the United States, and thus are not under the jurisdiction of the Federal Reserve. Subsequently, such deposits are regulated much less than similar deposits within the United States, allowing for higher margins.
Historically, such deposits were held mostly by european banks and financial institutions, and thus became known as eurodollars. Such deposits are now available in many countries worldwide, but they continue to be referred to as eurodollars regardless of the location.
