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Currencies in sentence

1239 examples of Currencies in a sentence

In the last two months, their currencies have lost around a quarter of their value against the US dollar.
The International Monetary Fund and the G7 countries’ central banks must act as global lenders of last resort and provide ample liquidity – quickly and with few strings attached – to support emerging markets’ currencies.
Collapsing emerging-market currencies, and the resulting trade pressures, will make it all the more difficult for them to prevent their unemployment levels from rising significantly.
In the last four months alone, it has soared by more than 7% compared with a basket of more than a dozen global currencies, and by even more against the euro and the Japanese yen.
There is also the risk that, given the role of the ECB and the Bank of Japan in shaping their currencies’ performance, such a shift could be characterized as a “currency war” in the US Congress, prompting a retaliatory policy response.
To be sure, this risk was more acute when a larger number of emerging-economy currencies were pegged to the US dollar, which meant that a significant shift in the dollar’s value would weaken other countries’ balance-of-payments position and erode their international reserves, thereby undermining their creditworthiness.
Because they know that it will take time for domestic demand to pick up, emerging markets are unwilling to risk a collapse in exports to the US by allowing their currencies to strengthen against the dollar too quickly.
In the ongoing showdown over currencies, who will blink first?
China’s SDR DistractionWASHINGTON, DC – At the start of October, China’s currency, the renminbi, was added to the basket of currencies that make up the International Monetary Fund’s Special Drawing Rights, or SDR.
Now that the renminbi has been added, it can claim to be one of just five truly global currencies.
The only practical implication of adding the renminbi to the SDR basket is that it now becomes a currency that countries can draw, along with the SDR’s other four constituent currencies, when they borrow from the IMF.
The Irresistible Rise of the RenminbiSEOUL – By the end of this year, the International Monetary Fund will decide whether the Chinese renminbi will join the euro, the Japanese yen, the British pound, and the US dollar in the basket of currencies that determines the value of its international reserve asset, the Special Drawing Right (SDR).
The IMF created the SDR in 1969 to supplement existing reserve currencies, thereby providing the global financial system with additional liquidity.
Inertia favors currencies that are already in use internationally, and China lacks deep and liquid financial markets, an important precondition that any international reserve currency must meet.
Indeed, the accession countries that have not implemented a currency board have seen their budget deficits surge--exceeding 9% of GDP in Hungary in 2002 and more than 5% in Poland, the Czech Republic, and Slovakia--while large capital inflows have kept their currencies under strong pressure to appreciate.
So European institutions should abandon their paternalistic approach and take seriously the concerns of accession countries' central bankers about the risks of maintaining their own currencies for a long period during which their economies have to open up completely to capital flows.
It would also allow other Asian countries to let their currencies rise or expand their exports at the expense of Chinese producers.
China’s existing portfolio of some $3 trillion worth of dollar bonds and other foreign securities exposes it to two distinct risks: inflation in the United States and Europe, and a rapid devaluation of the dollar relative to the euro and other currencies.
Even if there were no increase in inflation rates, a sharp fall in the dollar’s value relative to the euro and other foreign currencies would reduce its purchasing value in buying European and other products.
The Chinese can reasonably worry about that after seeing the dollar fall 10% relative to the euro in the past year – and substantially more against other currencies.
During the past 12 months, China had a current-account surplus of nearly $300 billion, which must be added to China’s existing holdings of securities denominated in dollars, euros, and other foreign currencies.
While the renminbi has risen relative to the dollar, the dollar has declined against other major currencies.
The dollar is likely to continue falling relative to the euro and other currencies over the next several years.
China’s market-oriented shift will be reinforced by the commitments that its leaders made to the International Monetary Fund when the renminbi was added to the basket of currencies that determine the value of the Fund’s unit of account, Special Drawing Rights.
Since then, growth in these economies has slowed markedly, their stock markets have slumped, capital outflows have escalated, and many of their currencies have crashed.
But developing countries’ currencies will undoubtedly become more prominent in the longer term.
Some emerging economies did not let their currencies float but, instead, continued to peg them at undervalued exchange rates in order to promote their exports and build up reserves as a form of insurance in case of crisis.
Rival currencies have risen like heavyweight contenders, only to fall back as economic conditions in their home economies became more complicated – think of the yen or the euro.
Demand is therefore being drained out of the eurozone economies, with stronger external demand, stemming from the euro’s depreciation against other major currencies, unable to offset the effect on growth.
Moreover, China sits on roughly $3.3 trillion in foreign-exchange reserves – much of it in dollars, but also in other major currencies – owing to its large trade surplus in recent decades.
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