German translation: Euro-Zinssatz / Euromark(-Satz) / Eurodollar(-Satz)
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14:34 Mar 27, 2002
English to German translations [Non-PRO] Bus/Financial
English term or phrase:Eurorate/Euromark/Eurodollar
If the one month Eurorate of one currency (e.g. CHF's Euromark rate) is lower than the Eurorate of the other (e.g. USD's Eurodollar rate) then the USD will be regarded as trading at a discount to the CHF given the European terms quotation method, and the resulting swap points will be subtracted from the USD/CHF spot rate to obtain the forward one month USD/CHF rate.
Explanation: This is pretty "old" terminology - originally, a "Euro" market was defined as the market in interest rates or bonds outside the respective currency's home market (hence the term "Eurobonds"). Originally, this development was driven by US regulations of financial markets.
The arrival of the single European currency has made things somewhat confusing, since now it's difficult to tell whether you're talking about an offshore market ("Euro rate" or "Eurorate") or the interest rate for the single currency ("euro rate").
In the sentence given here, you may want to talk about "Zinssatz im Euromarkt"; the fact that specific references are made to Swiss francs and US dollars should prevent too much confusion.
"Euromarks" and "Eurodollars" are established terms in English which have been "imported" into German - the only thing I find strange is the "Euromark" rate for Swiss francs; I would have referred to that as the "Euroswiss" rate, if anything.
Don't hesitate to contact me directly if you need backup on the concept of forward foreign exchange arbitrage vs. interest rate differentials.