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Finance
Xenocurrency
Any currency that is deposited or traded in markets outside of the country in which it is issued.
Xenocurrencies exist because of global trade and capital flows. The Eurodollar market is huge and influences global interest rates. They are less regulated than domestic currency markets and can affect monetary policy.
It's money that's travelling abroad and being used or traded far from its home country.
Real world: US dollars held and traded in European banks are xenocurrencies (often called Eurodollars). They are used for international trade and lending outside the US banking system.
💡 Xenocurrencies show how money flows freely across borders in the modern world.