Eurodollars are deposits denominated in US dollars at banks outside the United States, and thus aren't under the jurisdiction of the Federal Reserve. Consequently, such deposits are subject to much less regulation than similar deposits within the United States, allowing for higher margins. There's nothing "European" about Eurodollar deposits; a US dollar-denominated deposit in Tokyo or Caracas would likewise be deemed a Eurodollar deposit. Neither's there any connection with the euro currency. T… (More on Eurodollar)