COMMERCE 3FA3 Chapter 21: Chapter 21
12 Dec 2017
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Document Summary
The following terminology is selected because it used heavily in financial press (financial jargon). Cross rate: the implicit exchange rate between two currencies who are both quoted in some third currency. Usually the third currency is the us dollar. Eurobond: a bond issued in multiple countries, but dominated in a single currency, usually the issue(cid:396)"s ho(cid:373)e (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)(cid:455). Such bonds have become an important way to raise capital for many international companies and governments. Eurobonds are issued outside the restriction that apply to domestic offerings and are syndicated and traded mostly form london. Trading can and does occur anywhere there is a buyer and seller. Eurocurrency: money deposited in a financial center outside of the country whose currency is involved. Eurodollars are the most widely used eurocurrency, they are us dollars deposited in banks outside the us banking system. Export development canada (edc): a federal crown corporation with a mandate to promote.
