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Depreciate in sentence

106 examples of Depreciate in a sentence

When capital flows out of the country – as is happening now in some emerging markets – it may be helpful if the central bank allows the currency to depreciate in an effort to boost exports and reduce imports.
But in Latin America, much of public and especially private debt remains dollar-denominated, which limits how much central banks can allow currencies to depreciate in response to higher US interest rates.
It was only in 1995-96 that the US eased its position and allowed the yen to depreciate against the dollar.
But, at the end of the day, they will still have to confront a core problem: Germany, which has benefited the most from a monetary union in which its trading partners have no currency to depreciate, doesn’t want to foot the bill for bailing out profligate member states.
And if multiple currencies all depreciate against the US dollar, the resulting impact on the US manufacturing industry could slow the American economy, undermining its import demand and thus hurting the word’s exporters.
It will be like what happened in Britain after it abandoned its exchange-rate peg and allowed the pound to depreciate relative to the Deutschmark , or what happened in the US in the late 1980’s, when the dollar depreciated against the pound, the Deutschmark , and – most importantly – the Japanese yen.
Now the cycle is being reversed and exchange rates must depreciate to facilitate external adjustment.
And all countries can’t depreciate their exchange rates at the same time.
Firms scale up investment in times of uncertainty when they are allowed to depreciate capital expenditure rapidly for a limited period of time.
The Authority recovers all of its operating costs from tariffs, and must depreciate its assets with time.
Under recent conditions, if China allowed the renminbi to float freely, without intervention, it would be more likely to depreciate than rise against the dollar, making it harder for US producers to compete in international markets.
This alone means that under normal circumstances the purchasing power of China’s foreign-exchange reserves will automatically depreciate by 4% each year.
It could set its own tariffs higher than those of the US, apply them to a larger range (and greater dollar value) of US exports, or offset the impact of US tariffs on Chinese exporters by allowing the renminbi to depreciate against the dollar.
QE raises equity prices; lowers long-term interest rates; causes currencies to depreciate; and eases credit crunches, even when interest rates are near zero.
Not surprisingly, China accuses it of deliberately aiming to depreciate the dollar.
As long as US banks can borrow at near zero and buy government bonds without having to commit equity, and the dollar does not depreciate against the renminbi, interest rates on US government bonds may well be heading in the same direction.
But, unlike in 2008, when the US dollar appreciated, allowing emerging markets to revive quickly, the renminbi would likely depreciate should China’s economy experience a serious downturn, spreading deflation far and wide.
Other currencies might depreciate as well, some as a result of deliberate policy.
The People’s Bank of China can permit it to depreciate against the reference basket by, say, 1% a month, in order to enhance the competitiveness of Chinese exports and address concerns that the currency is overvalued.
Protected by this financial Great Wall, the authorities could let the exchange rate fluctuate more freely and allow it to depreciate gradually without provoking capital flight.
But one could argue that if there is a capital-flow reversal, the exchange rate would depreciate, causing exports of goods and services to increase and imports to decline; the resulting current-account adjustment would quickly reduce the need for capital inflows.
The question is whether the US and other reserve-currency countries will share the burden of maintaining global currency stability, through an agreement resembling the 1985 Plaza Accord, in which five major economies agreed to depreciate the US dollar against the Japanese yen and the German Deutsche Mark.
Their currency may depreciate, but the risk of default is absent.
The risk is that those countries that suffer from the switch retaliate and depreciate their own currencies.
These countries, too, are facing a recession, and, while the interest rate has not yet reached its zero bound everywhere, incentives to depreciate might grow in the near future.
In fact, Poland’s currency recently started to depreciate.
Unfortunately, the currencies of the debtor countries have continued to depreciate, aggravating their debt problems and further undermining confidence.
A country with a flexible currency can achieve that by allowing the exchange rate to depreciate.
Since all of the accumulated debt is denominated in euros, it makes all the difference who remains in charge of the monetary union.If Germany left, the euro would depreciate.
Moreover, a number of eurozone countries’ continuing economic distress and weak competitiveness reflects their lack of a currency to depreciate.
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