Currencies in sentence

1239 examples of Currencies in a sentence

Given the difficulty of establishing such control over the European Central Bank, the euro’s next great challenge may be growing sentiment in favor of a return to national currencies.

“Currency wars” is a more apt description when countries intervene to push down their currencies in deliberate attempts to help their trade balances.

True, in recent years, a wide array of countries has indicated a preference for weaker currencies as a means of improving their trade balances.

Few countries accused of participating in a currency war have undertaken discrete devaluations in recent years or acted to weaken their currencies by switching their exchange-rate regimes.

Vast amounts of short-term capital, speculating on interest rate convergence or equity market gains, are flowing into the most advanced candidate countries, driving up their currencies and increasing their vulnerability to a sudden capital-flow reversal.

All have flexible exchange rates, a large war chest of reserves to shield against a run on their currencies and banks, and fewer currency mismatches (for example, heavy foreign-currency borrowing to finance investment in local-currency assets).

Proponents of the single currency object that if Europe has separate national currencies, it will have separate banking systems, each with its own lender of last resort.

If these include personnel from Room 99, Kim’s secret nuclear directorate, and Room 39, the bureau that controls his slush fund of hard currencies, more attention is needed.

Instead, the question to ask is whether the reserves can comfortably service the public and private sectors’ debt denominated in foreign currencies.

Currencies fell, interest rates rose, and credit default swaps soared.

Recipient countries would have to pay the IMF a very low interest rate: the composite average treasury bill rate of all convertible currencies.

Under the Bretton Woods system, which until the early 1970s pegged currencies to the price of gold, Germany would have received 19,000 tons of gold (based on prices at the end of 2017) for these claims.

But the long history of global anchor currencies suggests that the dollar’s days on top may be far from over.

Even as late as 1950 – more than a half-century after the US had replaced Britain as the world’s largest industrial power – 55% of foreign-exchange reserves were held in sterling, and many countries continued to peg their currencies to it.

The Bretton Woods system linked the US dollar to gold at $35 per ounce, with other currencies linked to the dollar (though occasionally allowed to make adjustments).

In Paris, the suggestion is growing that Washington must be made to stabilize exchange rates between the main currencies, in particular the euro/dollar exchange rate.

With the advent of new, global technologies such as blockchains – continuously growing transaction databases used, for example, to sustain virtual currencies – the notion of data localization becomes even more misguided.

And, of course, foreign investors are acutely sensitive to relative returns on assets – the US versus other markets – as well as the translation of those returns into their home currencies.

Just to be clear, I am not siding with those – usually American far-right crackpots – who favor a return to the gold standard, in which countries fix the value of their currencies in terms of gold.

So they hold reserves of such currencies as a backstop against fiscal and financial catastrophe.

Will they create digital currencies of their own?

Most experts agree that the ingenious technology behind virtual currencies may have broad applications for cyber security, which currently poses one of the biggest challenges to the stability of the global financial system.

It is one thing for governments to allow small anonymous transactions with virtual currencies; indeed, this would be desirable.

Of course, as I note in my recent book on past, present, and future currencies, governments that issue large-denomination bills also risk aiding tax evasion and crime.

Carrying paper currency in and out of a country is a major cost for tax evaders and criminals; by embracing virtual currencies, Japan risks becoming a Switzerland-like tax haven – with the bank secrecy laws baked into the technology.

Finally, it is hard to see what would stop central banks from creating their own digital currencies and using regulation to tilt the playing field until they win.

Japan’s government is able to pay such a low rate of interest because domestic prices have been falling for more than a decade, while the yen has been strengthening against other major currencies.

The yen’s rising value raises the yield on Japanese bonds relative to the yield on bonds denominated in other currencies.

With Japanese prices rising and the yen falling relative to other currencies, investors will be willing to hold Japanese government bonds (JGBs) only if their nominal yield is significantly higher than it has been in the past.

Households would cut spending, and investors would reduce their American holdings, driving the dollar down against the Euro and other currencies.

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