Foreign Official Dollar Reserves - FRODOR


DEFINITION of 'Foreign Official Dollar Reserves - FRODOR'

A term coined by economist Ed Yardeni relating international liquidity to the effect of foreign central banks on U.S. monetary policy. It is measured as the sum of U.S. Treasury and U.S. agency securities held by foreign banks.

BREAKING DOWN 'Foreign Official Dollar Reserves - FRODOR'

FRODOR is an extremely procyclical economic indicator. As the growth of FRODOR rises, so do the prices of stocks, commodities and real estate, while the U.S. dollar declines. The opposite is seen when the growth of FRODOR decelerates.

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