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Currencies in sentence

1239 examples of Currencies in a sentence

But, beyond the impact that this approach is having on individual economies are broader systemic risks that arise from surging equities and weaker currencies.
But if Italy and Spain are no longer at risk of default, or of abandoning the euro, Germany and other eurozone leaders will have room to decide whether to continue funding these very small states or politely invite them to leave the euro and return to national currencies.
If Italy, Spain, and France were not part of the eurozone, they could allow their currencies to devalue; weaker exchange rates would increase exports and reduce imports, eliminating their current-account deficits.
If the euro falls by 20-25%, bringing it close to parity with the dollar and weakening it to a similar extent against other currencies, the current-account deficits in Italy, Spain, and France would shrink and their economies would strengthen.
Similarly, some emerging-market currencies have come under renewed pressure in recent days, triggered in part by the devaluation of the Argentine peso and signs of a slowdown in Chinese growth, as well as doubts about these economies’ real strengths amid generally skittish market sentiment.
Some that have high per capita income – for example, Israel, Hong Kong, and Singapore – have low inflation and want to maintain low policy interest rates to prevent exchange-rate appreciation against major currencies.
Because the current-account surplus is denominated in foreign currencies, China must use these funds to invest abroad, primarily by purchasing government bonds issued by the United States and European countries.
This outlook for the current-account balance does not depend on what happens to the renminbi’s exchange rate against other currencies.
The losses in emerging-market currencies and assets in recent months are a harsh reminder of an inconvenient truth: when the Fed tightens monetary policy to manage macroeconomic conditions in the US, there are large unintended spillover effects on capital flows to emerging markets.
From East Asia to Western Europe, currencies swooned and equity prices tumbled – all because of China’s decision to allow a modest devaluation of its currency, the renminbi.
To this end, China has been campaigning for years to have the renminbi added to the basket of currencies that determines the value of the Special Drawing Right (SDR), the International Monetary Fund’s synthetic reserve asset.
If the renminbi were added to this group of the world’s leading currencies, it would gain considerable prestige, and central banks would undoubtedly increase their use of the currency as a reserve asset.
From their perspective, today’s high demand for long-term dollar-denominated securities is easily explained: Asian central banks are buying in order to hold down their currencies, the US Treasury is borrowing short (and thus not issuing that many long-term securities), and US companies are not undertaking the kinds of investments that would lead them to issue many long-term bonds.
True, there are times when particular countries’ currencies can be judged to be undervalued or overvalued, and there are times when their trading partners have a legitimate interest in raising the issue.
According to the “new quota formula,” members that issue international reserve currencies still appear to be those with more “potential need to borrow” from the IMF.
Nevertheless, one can imagine Trump saying that weaker currencies are for “losers.”
As for borrowing in European currencies, Griesa was quick to declare that his rulings would cover such bonds as well.
One source is central banks seeking to keep the value of their home currencies down so that their workers can gain valuable experience from exporting to the rich world.
In fact, the renminbi still trails other reserve currencies (the US dollar, the euro, the Japanese yen, and the British pound) in international finance by so much that a renminbi-led international monetary system by mid-century seems about as likely as a Blade Runner 2049-style dystopia.
For the Chinese, the future of the international monetary system should be one in which multiple national currencies provide choice – in terms of invoicing, payments, and asset allocation – thereby reducing the system’s exposure to national politics.
Countries that float their currencies can be free to set interest rates and determine financial conditions at home, even with substantial international capital mobility.
First, the dollar has depreciated against most currencies, but less so against those of important emerging-market partners, such as China.
Quantitative Easing and the RenminbiCAMBRIDGE – The United States Federal Reserve’s policy of “quantitative easing” is reducing the value of the dollar relative to other currencies that have floating exchange rates.
But what does the new Fed policy mean for one of the most important exchange rates of all – that of the renminbi relative to the dollar and to other currencies?
The effect of quantitative easing on exchange rates between the dollar and the floating-rate currencies is a predictable result of the Fed’s plan to increase the supply of dollars.
The rise in the volume of dollars is causing the value of each dollar to fall relative to these currencies, whose volume has remained constant or risen more slowly.
One form of that diversification is to buy foreign bonds and stocks, driving up the value of those currencies.
That provides a further reason for American investors to shift part of their portfolios from dollars to other currencies that are not likely to experience rising inflation.
South Korea, Brazil, and other emerging-market countries are also attractive diversification investments, causing their currencies to appreciate.
But the market forces that cause those currencies to appreciate do not work on the renminbi, because China has only very limited capital-account convertibility.
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