What is a Eurodollar?
A Eurodollar is a dollar denominated deposit held in a bank outside of the United States.
Being located outside the US, Eurodollars are not subject to regulation by the Federal Reserve Board. Being outside the jurisdiction of the Federal Reserve the deposits are subject to fewer regulations than withing the US, allowing for higher margins.
The name is derived from the fact that originally, these deposits were mostly held in Europe. Such deposits are held in many countries across the globe, but they are still referred to as Eurodollars.
The term Eurodollar also refers to the financial futures contract traded at the Chicago Mercantile Exchange. It is one of the most actively traded futures contracts in the world, making it a highly liquid market.
Currency convertor
Euro or drachma?
In the begining of 2015 Greece is facing their growing financial troubles. Returning to drachma is the only possible decision, because in this scenario greek economy will be quickly revived. The creditors of Greece will face the truth and will understand that the country can leave the eurozone to recover their competitiveness.
Returning of drachma will stimulate greek economy, because the country will be able to stop the expensive import of agricultural production from European union and focus to their own production, which will open new jobs.
If Greece return to the drachma this may better reflect on the tourism, where low prices will attract more tourists, who previously preferred Turkey.
The drachma may affect the greeks, who previously transfered their money abroad and now they may start buying cheap real estates. This may start a boom in construction and revival of the industry.
Central banks and buying gold
The central banks in globally have added new 477.2 metric tons to their gold reserve only last year(2014). This is the second biggest growth for the past 50 years and it is 17% more than 2013, according to the World Gold Council.
Based on the avarage price of gold for the last year, central banks have paid around 19.4 billion dollars to increase their reserve. This way they keep the upward trend of purchases for the last 5 years, after 20 years of selling.
World Gold Council predicts that in 2015 purchases of gold made by the central banks will be more than 400 tons. Today spot price of gold rises with 0.18% to 1221.07 dollars for ounce, breaking the downward trend from the last 3 weeks.
