eurodenominated

Eurodenominated is an adjective describing money, assets, or settlements expressed in the euro (EUR). It is used to label financial instruments such as euro-denominated bonds, loans, deposits, and derivatives, as well as invoices and prices quoted in euros. The term distinguishes euro-denominated assets from those denominated in other currencies, such as the U.S. dollar, British pound, or Japanese yen.

In practice, eurodenominated securities can be issued in the eurobond market or by issuers located in the euro area or beyond it, with payments and principal in euros. A non-euro-area company might issue euro-denominated debt to access euro capital markets. Likewise, trade finance, consumer deposits, and commercial invoices may be denominated in euros. Settlement is often conducted through European clearing systems and subject to European financial regulation. For holders whose home currency is not the euro, euro-denominated instruments carry currency risk relative to the euro.

The euro was introduced in 1999 (as book money) and in 2002 as cash, creating a standardized unit for euro-denominated transactions. Today, euros are widely used across the European Union and in international markets as a reserve and settlement currency. See also euro, eurozone, eurobond, and currency denomination.