Odd Lots Josh Younger on the Surprising Origins of Eurodollars and Petrodollars
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Jun 19, 2023 
In this discussion with Josh Younger, Senior Advisor at the Federal Reserve Bank of New York and former JPMorgan Chase expert, the origins of eurodollars and petrodollars take center stage. Younger unpacks how these dollar variants emerged post-World War II and their pivotal role in shaping global finance. He delves into regulatory challenges and the surprising connections between eurodollars and even a communist bank in Paris. The impact of geopolitical events, like the 1973 oil embargo, further illustrates how these concepts reshaped investment strategies and currency dynamics.
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Early Mentions of Eurodollars
- The Economist first mentioned "foreign money" in London around 1954.
- This referred to dollar deposits in London banks, marking the growth of the Eurodollar market.
US and Eurodollars
- The US initially saw Eurodollars as a way to promote dollar use abroad.
- This helped retain gold reserves by offering a dollar alternative.
Foreign Regulator Concerns
- Foreign regulators initially had mixed feelings about Eurodollars.
- They liked the increased business but worried about control and the pound's devaluation.