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Currencies in sentence

1239 examples of Currencies in a sentence

Investors in the US and other countries cannot buy either renminbi or renminbi-denominated bonds in the way that they can buy other currencies.
So the relevant question is how the Chinese government will choose to respond to the Fed’s quantitative easing and the impact of the Fed’s policy on other currencies.
While the renminbi has appreciated slightly relative to the dollar since June, the greater fall of the dollar relative to many other currencies means that the renminbi has generally also fallen relative to those currencies.
The overall trade-weighted value of the renminbi has thus declined significantly, particularly relative to the currencies of the emerging-market countries with which Chinese producers compete.
But it is clear that the fall of the renminbi against other currencies that has resulted from the Fed’s policy of quantitative easing now gives the Chinese scope for more rapid appreciation of the renminbi relative to the dollar.
America’s inflation would be contained but for the fact that so many countries, from the Middle East to Asia, effectively tie their currencies to the dollar.
As a result, whenever the Fed cuts interest rates, it puts pressure on the whole “dollar bloc” to follow suit, lest their currencies appreciate as investors seek higher yields.
This simply reflects the reality of monetary-policy interdependence: if the US Federal Reserve’s policy of so-called quantitative easing weakens the dollar, others have to respond to prevent undue appreciation of their currencies.
It is worth noting that sovereignty’s defenders never complained when the euro brought their countries the low inflation and interest rates of the euro’s most stable predecessor currencies in exchange for handing over their monetary-policy competencies to the European Central Bank.
In the US, the inflation rate has also been depressed by the rise in the value of the dollar relative to the euro and other currencies, which has caused import prices to decline.
The US dollar could strengthen much further, especially against emerging-market currencies, despite Trump’s stated desire to boost US exports.
Then panic spread to credit markets, money markets, and currency markets, highlighting the vulnerabilities of many developing countries’ financial systems and corporate sectors, which had experienced credit booms and had borrowed short and in foreign currencies.
The impact will be particularly powerful in emerging countries, where currencies are vulnerable to a rising dollar and tightening liquidity conditions in the US.
In the future, however, this vulnerability will be lessened by the Chinese renminbi’s inclusion in the basket of reserve currencies that the International Monetary Fund uses to set the value of its Special Drawing Right (SDR), says Yu Yongding, Director of Global Economics at the Chinese Academy of Social Science.
That would relieve downward pressure on other emerging-market currencies, especially in Asia, according to Lee Jong-Wha, director of Korea University’s Institute of Asia Research.
They see how countries like Denmark that maintained their own currencies have been forced to raise interest rates to defend their exchange rates when the United States Federal Reserve and the European Central Bank are cutting interest rates.
It is European countries outside the euro area, still with their own currencies, that have suffered the gravest difficulties.
Because their currencies are not widely used internationally, many of their bank liabilities are in euros.
It is conceivable, therefore, that Europe will have two currencies, the euro and sterling, in the long run.
And the dollar has appreciated against most currencies, undercutting US exporters’ competitiveness, again in line with theory.
Member countries would receive an asset that was more stable than the dollar, as it was based on a basket of currencies, thereby providing better protection against losses.
Thanks to these measures, the renminbi remains one of the world’s more appreciated currencies.
If Trump is wondering why so many currencies are weakening against the dollar, perhaps he should look at his own actions over the last five months.
Huge two-way gross capital flows are driven by transient changes in perception, with carry-trade opportunities (borrowing in low-yielding currencies to finance lending in high-yielding ones) replacing long-term capital investment.
On the other hand, the increased cost would be offset to some extent by lower-cost imported inputs, and foreign affiliates could expect to repatriate higher profits from sales in China in terms of their own currencies.
The 20% revaluation of the renminbi against the US dollar in 2005-2008 undoubtedly facilitated this in the case of recipient countries whose currencies did not also appreciate against the dollar.
According to its promoters, Bitcoin has a steady-state supply of 21 million units, so it cannot be debased like fiat currencies.
Since the invention of money thousands of years ago, there has never been a monetary system with hundreds of different currencies operating alongside one another.
But for money to have value, and to generate economies of scale, only so many currencies can operate at the same time.
Cryptocurrencies have no intrinsic value, whereas fiat currencies certainly do, because they can be used to pay taxes.
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