A short term unsecured debt instrument Denominated in a currency that differs from the Domestic Currency of the market where it is issued. Eurocommercial paper is an attractive short term financing tool for corporations that wish to reduce forex market risk, and such paper does not have to be issued in Euros. An example would be Eurodollar commercial paper denominated in U.S. dollars but issued in the Japanese debt market with a short time remaining until maturity.
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uncovered interest arbitrage
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