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Currencies in sentence

1239 examples of Currencies in a sentence

But there is a bolder and more productive approach that relies on past experience with multiple currencies.
But it also took away the one-way-bet character of speculative attacks on vulnerable currencies, and thus removed the fundamental driver of instability.
The modern equivalent of the band widening of 1993 would be to maintain the euro for all members of the eurozone, but also allow some of them (in principle, all of them) to issue – if necessary – national currencies.
The countries that did would probably find that their new currencies immediately traded at a heavy discount.
Of course, there would also be the possibility that no convergence would occur, and that the two parallel currencies would coexist for a much longer period.
In fact, there is a rather surprising parallel for stable coexistence of two currencies over a long period of time.
These would be the silver currencies.
Maintaining a choice of currencies in a national as well as an international setting seems odd and counterintuitive.
Would people give up their old national currencies and use the new euro?
When a group of individual currencies is replaced by a single currency, as the Deutsche mark, French franc, Italian lira, Spanish peseta, and others were by the euro, there are two primary benefits: lower transaction costs and greater transparency.
Having neither the cost and inconvenience of constant currency transactions nor the uncertainty that arises from fluctuations among currencies is a boon to the common currency area.
In the 1990’s, emerging-market crises were first and foremost currency crises: sharp corrections of overvalued currencies that bankrupted public and private sector debtors.
Digital currencies like Bitcoin have also so far failed to live up to the hype surrounding them.
Central banks have reportedly slowed their accumulation of dollars in favor of other currencies.
Thus, for the dollar to depreciate further, it will have to depreciate against the currencies of China and other emerging markets.
In the longer run, OPEC will shift to pricing petroleum in a basket of currencies.
This is because official capital controls oblige exporters to deposit hard currencies with the People’s Bank of China in exchange for freshly printed yuan (usually as bank deposits) or government debt.
Another source of fiscal and economic distortion comes from the semi-official merchants, or bazaaris, whose businesses account for 10% of GDP, and who enjoy, together with various bureaucrats, special privileges such as access to hard currencies at special rates.
As emerging-market central banks leaned against heavy capital inflows in order to mitigate exchange-rate appreciation, their currencies became less volatile.
Given this, the likely upshot of monetary tightening in the advanced economies will be a long depreciation of emerging-market currencies and, in turn, a significant interest-rate hike – a trend that puts emerging economies at risk for the kinds of credit crises that have bedeviled developed economies over the last six years.
The higher interest rates rise to stabilize emerging markets’ currencies, the more severe their crises will be.
Ultimately, even if emerging economies manage to diversify their funding away from foreign currencies, they will remain hostages to US monetary-policy cycles.
Had emerging economies resisted the temptation of excessive private-sector credit growth, raising interest rates in order to stabilize currencies would not pose a severe threat to economic performance.
Unless emerging-market governments take advantage of the limited space provided by their foreign-exchange reserves and floating currencies to enact vital structural reforms, the onus of adjustment will fall on interest rates, compounding the effects of slowing growth and the risks associated with bad debt.
But, since 2016, when the renminbi was included in the basket of currencies that determines the value of the International Monetary Fund’s Special Drawing Rights (SDR), the exchange rate has been determined mainly by market forces.
Still, despite PBOC Governor Yi Gang’s insistence that China’s exchange rate reflects demand and supply (with a basket of currencies as a reference), monetary authorities have the power to intervene when necessary.
Oil Currency HypocrisyCAMBRIDGE – Does it make sense for United States Treasury Secretary Hank Paulson to be touring the Middle East supporting the region’s hard dollar exchange-rate pegs, while the Bush administration simultaneously blasts Asian countries for not letting their currencies appreciate faster against the dollar?
Instead of promoting dollar pegs, as Paulson is, the US should be supporting the International Monetary Fund’s behind-the-scenes efforts to promote de-linking of oil currencies and the dollar.
Of course, a strengthening of the oil currencies (including not only the Gulf States, but also other Middle East countries and Russia) would not turn around the US trade balance overnight.
Then again, perhaps the Bush administration is worried that if the oil currencies strengthen too much against the dollar, it will start becoming too expensive for the US to scale up its military operations in the Middle East.
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