The Eurodollar are financial instruments emerged in the 1950s but are really developed in the 1970s after the first shock oil and the appearance of a flow of petrodollars . They consisted of deposits in the City of London’s banks , but denominated in dollars, to avoid taxation in the United States, which had remained high until 1982 . Between 1970 and 1982 the amount of bank deposits in dollars by non-US has multiplied by 40, reaching 2000 billion 1 .


The Eurodollar used to lend money to several countries including the oil fields had become highly profitable by rising oil prices: Mexico , Venezuela , Indonesia or Nigeria and other developing countries. Eurodollars were also used to finance the budget deficits of the industrialized countries, which have widened because of the oil shock 2 , governments wanting to attract foreign capital to fight against monetary instability, especially in Europe , where the European monetary snake is experiencing crises since its creation on April 10, 1972which is followed in 1979 by the European Monetary System .


From 1971 , the Vietnam War , which lasts longer than expected to swell public spending of the United States and leads the American president Richard Nixon to eliminate the convertibility of the dollar into gold, ending the Bretton Woods . Penalized by a drop in revenues, denominated in dollars, the oil-producing countries are organizing a retention of production to raise prices from $ 1.9 per barrel to $ 9.76 3 : this is the oil shock of 1973 , then that of 1980. The oil countries then have large oil surpluses that they will deposit in European banks.


  1. ↑ “The Americanization of Western Europe in the twentieth century: myth and reality”, by Dominique Barjot, Christophe Réveillard, European University Institute, page 149
  2. ↑ “The crisis of global capitalism” by George Soros, page 159, Editions Plon
  3. ↑ “The crisis of global capitalism” by George Soros , page 159, Editions Plon

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