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Eurodollar

A Eurodollar is not a currency.  It is a U.S.-dollar denominated deposit at a foreign banks, or held at foreign branches of American banks.  Eurodollar accounts are commonly used for settling [paying for] international transactions such as would be the case when a U.S. based exporter sold goods on open account terms to a European purchaser based on the seller's evaluation of the buyer's creditworthiness.

© 2011 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."