What is the euro deposit?

There are two different types of euro deposit. The older of these two indicates a foreign currency deposit to a bank account outside the currency country; One example is the deposit of US dollars to a bank account in London. Since the introduction of the EURO currency of 1999, the deposit of the euro may also refer to the EUR in the bank, usually in the member country of the European monetary system (EMS), but not necessarily; The growing number of banks around the world offers deposit accounts in a number of currencies, among them the euro is prominent. Both types are usually created under solid conditions, although it can range from one day - usually produced only by corporations, large investment companies and other banks - up to one year or more. Interest rates from both types of euro deposits may be determined for the period of deposit or floating, which means that the rate will be regularly reset during the period of deposit.

The origin of the older two types of euro deposit returns to the era after World War II, when dollars began to accumulate in European banks as a result of the planMarshall. Overseas shares of US dollars then grew rapidly in other regions, such as the Gulf countries and Japan, because the dollar has become the change of international trade and finance, and the US began to operate deficits of trade and current account. London became an international financial center for what became known as Eurodollar Market. With the permanent growth of global trade, this market has grown extremely and has spread to include the "Offshore" deposits of all major currencies, including the possession of the Japanese yen, known as Euroyen; Before the introduction of the euro, this included offshore deposits and securities of all major European currencies.

The second, newer type of euro deposit is simply EUR deposit into the bank, which can be an EMS member, usually for a solid period. The European Central Bank will determine the rates of euro deposits for a number of standard conditions daily. These are known as Euro Interbank offers, simply Euribor. To the extent that the euro appreciates or strengthens to its domestic currencyEstores and savings from the US and other countries outside the EMS stand to obtain the euro deposit, because the euro will have more value of their domestic currency after the period of their deposit.