Xenocurrency

A xenocurrency ("xeno" means foreign) is money sitting outside its home turf. US dollars deposited in a London or Singapore bank are the classic example, often called eurodollars even though they have nothing to do with the euro.

These offshore pools are enormous and lightly regulated compared with domestic banking. They help global trade run smoothly, but they also mean a lot of dollar borrowing happens outside the Fed's direct reach, which can cause stress when dollars get scarce.