Currencies in sentence

1239 examples of Currencies in a sentence

It was precisely the painful consequences of their sliding currencies that enticed these countries to join a monetary union with Germany.

In the run-up to the Asian financial crisis of the 1990s, many emerging economies kept their currencies rigidly pegged to the dollar, and governments tended to borrow heavily in dollars, despite generating most of their revenues in the domestic currency (what economists labeled “original sin”).

The euro's value dropped markedly against other major currencies, particularly the US-dollar and the Japanese yen, after its launch in January 1999.

During this era, the dollar strongly appreciated against major currencies and by 1985 was overvalued by virtually every measure.

Consider Brazil, whose currency, the real, has been hammered since mid-2014 – much worse than most other emerging-market currencies – largely because of a major corruption scandal unfolding there.

Asset prices are being manipulated across the board – stocks and bonds, long- and short-duration assets, as well as currencies.

In the 1980s, the dollar first soared against the Yen and European currencies, then it collapsed.

So, on an overall trade-weighted basis, the renminbi is substantially higher relative to the currencies with which it competes.

Even more relevant, the decline of the renminbi and other currencies in the past year has had very little impact on US import prices, because Chinese and other exporters price their goods in dollars and do not adjust them when the exchange rate changes.

Emerging-market currencies weakened on fears that capital flows from the US would reverse direction.

Given the limited number of currencies that can serve as IVCs, the failure of the renminbi to achieve IVC status before, say, the Indian rupee, the Russian ruble, or the Brazilian real could mean that the renminbi is denied IVC status – and that Shanghai fails to achieve 1-IFC status – for generations, if not forever.

Whenever the dollar was weak, capital surged into alternative currencies, notably the Japanese yen and the German Mark.

But exchange-rate appreciation put great strain on the export industries that were central to these countries’ economic performance; and both countries tried desperately to avoid becoming reserve currencies.

The managers of these new safe-haven currencies are now desperately seeking at least a temporary peg or some system of bands relative to the exchange rates of their big neighbors.

Thus stabilization and recovery in all Asia is in China’s interests, even if recovery in those countries which devalued their currencies leads to more intense competition in world markets for China.

If the Asian economies that devalued their currencies recover and significantly increase their exports and China begins to have a large trade deficitBeyond managing the uncertainties surrounding Japan's economy through the rest of this year, the challenge for Chinese policymakers will come when Asian economies start to grow and China’s domestic market heats up because of the government's ambitious infrastructure investments.

Moreover, Japan’s trade balance is now in deficit, and, rather than boosting exports, as intended, QE in Japan has led some Asian countries to depreciate their own currencies.

As a consequence, the euro is rising not only against the US dollar, but also against Asian currencies, whose central banks intervene in foreign exchange markets to fix their currencies’ value against the dollar.

Reduced European dependence on the US export market can hardly protect Europe from the effects of the US economic slowdown if the euro appreciates as much against the key Asian currencies as it has against the dollar.

The focus on currencies as a cause of the West’s economic woes, while not entirely misplaced, has been excessive.

Like other cryptocurrencies, Bitcoin serves no useful economic purpose, though in macroeconomic terms, such currencies probably also do little harm.

(The falling value of currencies like the euro and the yen – which account for a share of China’s reserves – relative to the US dollar has also contributed to the decline.)

But, with Greece and other troubled euro-zone economies (known to their detractors as the PIIGS: Portugal, Ireland, Italy, Greece, and Spain) having surrendered monetary policy to the European Central Bank (ECB) in Frankfurt, their currencies cannot fall in this fashion.

Once banks offer new assets denominated in renminbi, more customers will be drawn into the market, thereby adding liquidity and reducing transaction costs for purchases of renminbi in European currencies.

Thus, the decision to designate renminbi clearing banks in London and Frankfurt is, in effect, one more step by China to foster the emergence of an international monetary system with several global currencies, not just one.

Twenty-first-century financial technology will facilitate direct trading in a variety of different currencies, eliminating the need and custom of routing virtually all international transactions through the dollar.

More importantly, the IMF typically helped countries that had their own currencies and thus could counter international capital movements by adjusting their exchange rates.

The greenback has lost more than a quarter of its value against other currencies, adjusted for inflation, over the last decade.

If, on the contrary, they try to diversify into other currencies, they will drive down the dollar faster and create greater losses.

They are also likely to encounter the same sort of problem with other possible reserve currencies.

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