Eurocurrency is created by national central banks acting as agents for national governments. The national bank creates eurocurrency on a foreign account using its own country’s currency as payment for loans or investments. It also manages the foreign currency accounts for corporations or governments that wish to create euros outside of their home country. By doing this, the national bank creates euros on deposit at a foreign bank before transferring them to its home country’s balance sheet where they appear as domestic currency held in the home market’s banking system. With this method, euros can be moved between different countries without leaving their home market and without affecting exchange rates between different currencies in different markets.Eurocurrency is denominated in the national currency of the country where it is held. Therefore, when eurocurrencies are held on deposit in another country, they appear as that country’s domestic currency on the balance sheet of the banking system where they are held. When held on deposit in a corporation’s account, it appears as corporate money unless it has accounts denominated in another nation’s currency or if it holds payments from international corporations under another nation’s corporation name laws.For example, Apple has an offshore cash reserve fund denominated solely in Euros which can be used to fund its international operations or purchase foreign goods and services without affecting its domestic sales figures or raising interest rates for its home market citizens with excessive debt payments.
