Currencies in sentence

1239 examples of Currencies in a sentence

There was no realistic alternative, I concluded, to a future in which the leading national currencies, the dollar and the euro, still dominated international transactions.

Once upon a time (less than a year ago), it was possible to imagine international-reserve portfolios dominated by the dollar and euro; today, anxious central bankers are desperate for alternatives to both sick currencies.

Second-tier currencies, like the Swiss franc, the Canadian dollar, and the Australian dollar, are only a slightly larger midget when combined.

The reason is obvious on a moment’s reflection: the combined share of the dollar and euro approaches 80% of the basket of currencies that comprise the SDR.

Expanding the basket to include emerging-market currencies would help, but only a little, because the US and Europe still account for half of the world economy and more than half of its liquid financial markets.

It is far easier to build consensus around efforts, say, to add the renminbi to the basket of currencies that determines the value of the IMF’s reserve asset, the Special Drawing Right – a move that, while appropriate, would do little for medium-term growth.

Indeed, if Southern European countries had kept their own currencies, they might never have dug as big a debt hole, and would have had the option of partial default through inflation.

The global implications of lower emerging-market currencies are also likely to be deflationary.

But, because they flooded global markets with liquidity, large portfolio flows have moved into emerging-market countries, whose currencies often are not as liquid as the dollar.

Excessive currency volatility is not in America’s interest, not least because large exchange-rate depreciations in emerging markets would amplify the effects of globalization on US jobs, wages, and inflation, particularly as weaker foreign currencies make outsourcing a more economically viable solution.

Their currencies plunged.

More specifically, if the border tax adjustment is adopted, the dollar will increase by 25% relative to other currencies.

And, because there is no change in prices paid by American consumers or received by American exporters, that tax is borne by foreign producers, who, owing to the dollar’s appreciation, receive less in their own currencies for their exports to the US.

According to the magazine’s editor, the best way to pull digital currencies out from the shadows and “into the adolescence of a legitimate asset class” is to shine a light on the beneficiaries.

If the ECB wants to reduce the value of the euro and increase the eurozone’s near-term inflation rate, the only reliable way to do so may be by direct intervention in the currency market – that is, selling euros and buying a basket of other currencies.

Later this year, the IMF will recalibrate the weights in its unit of account, the so-called Special Drawing Rights, which comprises a basket of currencies that currently includes the US dollar, the euro, the British pound, and the Japanese yen.

Those credits can be converted into dollars and other currencies at the Fund, and can be used in official transactions among IMF member countries.

Worse still, such vicious cycles are difficult to break, because emerging-market currencies typically weaken when growth is threatened.

Now, currencies are the primary buffers mitigating the fallout on emerging-market debt and growth.

The normal response of emerging-market central banks to bubbles or inflation would be to raise interest rates – thereby increasing their currencies’ value still more.

US policy is thus delivering a double whammy on competitive devaluation – weakening the dollar and forcing competitors to strengthen their currencies (though some are taking countermeasures, erecting barriers to short-term inflows and intervening more directly in foreign-exchange markets).

Specifically, China and emerging Asia should implement reforms that reduce the need for precautionary savings and let their currencies appreciate;Germany should maintain its fiscal stimulus and extend it into 2011, rather than starting its ill-conceived fiscal austerity now; and Japan should pursue measures to reduce its current-account surplus and stimulate real incomes and consumption.

Fourth, countries with current-account surpluses should let their undervalued currencies appreciate, while the ECB should follow an easier monetary policy that accommodates a gradual further weakening of the euro to restore competiveness and growth in the eurozone.

There are two alternative and sharply contrasting approaches to getting currencies right.

History suggests that collective negotiation about currencies and a new approach to the issue of reserves are unlikely to succeed.

That, in turn, cleared the way for manipulation of currencies in the interests of exporters, businesses, and labor unions.

Capital outflows of this magnitude are likely to have myriad effects: drying up liquidity, increasing the costs of borrowing and debt service, weakening currencies, depleting reserves, and leading to decreases in equity and other asset prices.

I have spent many hours trying to guide, cajole, and beg my energy analysts to create a model that might identify it, just as we have for currencies, bond yields, and equities.

Property, construction, and land are the common currencies of power in mafia societies – in China and Russia no less than in Sicily.

The European Union has taught us valuable lessons over the last few decades: first, that financial integration requires eliminating volatility among national currencies; next, that eradicating exchange-rate risk requires doing away with national currencies altogether; and now, that monetary union is impossible, among democracies, without political union.

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