Currencies
in sentence
1239 examples of Currencies in a sentence
That does not mean, of course, that the single market cannot work with border controls or multiple
currencies.
The mechanics are familiar: dollar liquidity flees to emerging countries in search of higher yields, putting upward pressure on their
currencies.
But why should Latin American countries care about these capital flows and the revaluation of their
currencies?
Moreover, global deleveraging is asymmetric, with Latin American economies growing fast and advanced markets lagging – all of which may call for a real exchange-rate correction and thus justify revaluation of the region’s major
currencies.
When the Fed flinched at its mid-September policy meeting, they enjoyed a sigh-of-relief rally in their
currencies
and equity markets.
Since then, emerging-market
currencies
and fixed-income securities (government and corporate bonds) have taken a hit.
The era of cheap or zero-interest money that led to a wall of liquidity chasing high yields and assets – equities, bonds, currencies, and commodities – in emerging markets is drawing to a close.
Thus, many emerging markets’ growth rates in the next decade may be lower than in the last – as may the outsize returns that investors realized from these economies’ financial assets (currencies, equities, bonds, and commodities).
The dollar has also strengthened against the
currencies
of advanced-country commodity exporters, like Australia and Canada, and those of many emerging markets.
The dollar has also risen relative to
currencies
of emerging markets with economic and financial fragilities: twin fiscal and current-account deficits, rising inflation and slowing growth, large stocks of domestic and foreign debt, and political instability.
But the renminbi has also strengthened by 25% relative to other advanced-country
currencies
since 2010.
By contrast, emerging economies suffer from a downturn, but their situation is fundamentally sounder, which should be reflected in the value of their
currencies.
The only way to avoid it would be for them to exit the euro and devalue their new
currencies.
Market makers now have been instructed that the offer prices they report to the PBOC should be based on the market’s closing parity rate from the previous day, along with the demand and supply conditions in the foreign-exchange market and the movements of major currencies’ exchange rates.
At the European level, the most important recent development is the weakening of the euro relative to most major currencies, especially the US dollar, since mid-2014.
The sixth lesson the IMF has swept aside is that bailing out countries that do not fully control their
currencies
carries additional risks.
Apart from China, central banks don’t intervene to protect their
currencies
anymore.
If these countries lack the political consensus they need to pull this off, they should in their own interest consider leaving the eurozone temporarily to depreciate their
currencies.
With new allocations of SDRs to emerging industrial powers like China, the SDR, based on a basket of
currencies
including the renminbi, could serve not only as a development tool, but also as a means of international payment to rival the US dollar.
The link between wages and prices is currently being offset by the sharp decline in the price of oil and gasoline relative to a year ago, and by the strengthening of the dollar relative to other
currencies.
Instead, he or she trades “based on moves in currencies, interest rates, or the price of oil itself.”
In fact, Bulgarian, Croatian, and Romanian households have already loaded up on excessive debt in foreign
currencies
– primarily euros – in anticipation of joining the monetary union, and this has created substantial financial difficulties.
Emerging-market
currencies
were hammered, as were “commodity currencies” such as the Canadian, Australian, and New Zealand dollars, and the South African rand.
Commodity prices will continue to be soft, pulling down commodity currencies, and bolstering the yen especially, since resource-poor Japan is so reliant on commodity imports.
Indeed, a huge body of research shows that for most major currencies, the best forecast of next week’s exchange rate, next month’s exchange rate, or even next year’s exchange rate is simply today’s exchange rate.
Commodity
currencies
had to come off their meteoric highs.
But by now, emerging-market countries’ exchange rates, and even more so commodity currencies, have probably overshot on the downside.ampnbsp;
Over the long run, globalization and economic convergence will resume, and emerging market and commodity
currencies
will have to strengthen.
If today’s constellation of exchange rates represents some excessive dollar and yen appreciation, especially against emerging-market currencies, when it will unwind?
While keeping their own
currencies
and central banks, members would agree to denominate all payments in a common accounting unit, which Keynes named the “bancor,” and to settle all international payments through the ICU.
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