Eurodollar Definition
Eurodollar is a deposit denominated in U.S. dollars at banks outside the United States.
Originally, dollar-denominated deposits were held almost exclusively in Europe, thus the term referred to U.S. dollars in European banks. Nowadays they are also held in other countries like Bahamas, the Cayman Islands, Hong Kong, Panama, and Singapore. A U.S. dollar-denominated deposit in Japan is also referred to as eurodollars.