Euro Deposit

The equivalent of a money market rate on cash deposits made in the euro currency. Euro deposit rates will usually be quoted as "money market euro deposit rates" and are typically only offered to U.S. investors with minimum investments of greater than 10,000 euros. Euro deposits pay a floating interest rate (like a money market account) and offer the chance for capital appreciation if the euro appreciates against the investor's home currency (presumably the dollar). Euro deposit rates are based on the euro interbank offer rate, which is set by the European Central Bank.

There has been increased investor demand for cash equivalents in currencies outside of the U.S. dollar. If the dollar decreases in value compared to other currencies, there is little recourse for the investor's loss of global purchasing power, but by holding a euro-denominated asset, the investor can diversify some of his currency risk and possibly reduce overall portfolio risk in the process.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Euro deposit — deposit made in the European financial market …   English contemporary dictionary

  • euro certificate of deposit — Euro CD A certificate of deposit denominated in a eurocurrency London is the main issuing centre …   Big dictionary of business and management

  • Deposit insurance — Experiences from bank runs during the Great Depression led to the introduction of deposit insurance in the US …   Wikipedia

  • deposit — ▪ I. deposit de‧pos‧it 1 [dɪˈpɒzt ǁ dɪˈpɑː ] noun 1. [countable] BANKING an amount of money paid into a bank account or held in a bank account, especially when it is earning interest: • Residents have some $4 billion in deposits in local… …   Financial and business terms

  • Deposit (politics) — A deposit is a sum of money that a candidate must pay in return for the right to stand for election to certain political offices, particularly seats in legislatures. Contents 1 United Kingdom 2 Canada 3 Republic of Ireland 4 …   Wikipedia

  • Euro — Originally, the term for a deposit made outside one s home country but denominated in the home country currency. This terminology is confusing now since the new European Currency Unit, also called the Euro, was introduced on January 1, 1999.… …   Financial and business terms

  • Euro Certificate of Deposit — ( ECD) Euroclear Clearing and Settlement glossary The certificate is evidence of a deposit made with a bank, which will be redeemed on the maturity date with interest. The difference between a certificate of deposit and a normal deposit with a… …   Financial and business terms

  • Euro Certificate of Deposit — (ECD) The certificate is evidence of a deposit made with a bank, which will be redeemed on the maturity date with interest. The difference between a certificate of deposit and a normal deposit with a bank is that a certificate of deposit is an… …   Euroclear glossary

  • Container deposit legislation — Refillable glass bottles collected, and deposits refunded, at a collection point in Bishkek, Kyrgyzstan. Deposit values (from 0.5 to 2 Kyrgyz som, i.e. 2 5 US cents) for various bottle types are posted next to the sample bottles on a rack.… …   Wikipedia

  • Call Deposit Account — A bank account for investment funds that offers the advantages of both a savings and a checking account. A call deposit account, like a checking account, has no fixed deposit period, provides instant access to funds and allows unlimited… …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.