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Depreciation in sentence

495 examples of Depreciation in a sentence

This history suggests that exchange rates matter for competitiveness, and that sterling’s depreciation should help by enhancing the competitiveness of British exports.
The need to finance the external deficit and to avoid excessive depreciation (and even higher inflation) calls for raising policy rates or keeping them on hold at high levels.
What stories are investors far from America now telling one another to justify continuing to add to their exposure to the risk of dollar depreciation?
This requires a weak currency and conventional and unconventional monetary policies to bring about the required depreciation.
So the way out of the European conundrum – currency depreciation – risks being blocked by the market’s perception that the ECB and the Fed are at odds over monetary policy.
To restore growth, these countries must also regain competitiveness by achieving a real depreciation of their currency, thus turning trade deficits into surpluses.
The last option – deflation of wages and prices – to reduce costs, achieve a real depreciation, and restore competitiveness is associated with ever-deepening recession.
The real depreciation necessary to restore external balance would drive the real value of euro debts even higher, making them even more unsustainable.
And this is precisely what the PBOC did on August 12-13, when stronger-than-expected depreciation pressure and surging devaluation expectations raised the risk that the planned one-off exchange-rate adjustment could trigger a rout.
So the PBOC informed the market that the depreciation would not exceed 3% – a credible statement, given abundant official reserves with which to stabilize the exchange rate.
This episode showed that the renminbi is under significant depreciation pressure, which is likely to intensify as the PBOC, amid weak GDP growth, loosens monetary policy (particularly as the US Federal Reserve is gradually tightening its monetary policy).
For China’s monetary policymakers, reforming the exchange-rate system, while preventing depreciation from getting out of hand, poses a serious challenge.
Depreciation inside the eurozone in the form of deflation, on the other hand, would drive large parts of the real economy into excessive debt, because only the value of assets, not that of bank debts, would decline.
Other advanced industrial countries have paid for corporate rate reductions partly by restricting depreciation and other deductions.
Not only have they enabled investors to avoid paying for their poor decisions; they have also given overpriced southern European countries the opportunity to defer real depreciation in the form of a reduction of relative prices of goods.
But Portugal and Italy have so far failed to deliver any such “real depreciation,” while relative prices in Greece and Spain have fallen by only 8% and 6%, respectively.
Experience with similar programs in the United States, the United Kingdom, and Japan has shown that QE unleashes powerful forces of depreciation.
Of course, the renminbi’s recent depreciation was much smaller than the de facto currency devaluations engineered by the United States and the United Kingdom after the financial crisis of 2008.
To maintain growth, over-spending countries need nominal and real depreciation to improve trade balances, while surplus countries need to boost domestic demand, especially consumption.
The PBOC’s governor, Zhou Xiaochuan, has repeatedly stated that there is no basis for continued depreciation, but few in the country seem to be listening.
The key to the South Korean turnaround was a large depreciation of the currency, the won.
A depreciation of the euro seems to be one likely way that the eurozone will turn the corner.
While depreciation would never be eurozone officials’ stated policy, it currently looks like all roads lead in that direction.
Of course, currency depreciation is not a panacea.
But some depreciation of the euro would provide a bridge to reach internal governance reform.
The Dollar Hits an Oil SlickCAMBRIDGE – The rapid rise in the price of oil and the sharp depreciation of the dollar are two of the most noteworthy developments of the past year.
Thus, as rising global demand pushes oil prices higher in the years ahead, it will become more difficult to shrink America’s trade deficit, inducing more rapid dollar depreciation.
Earnings can grow faster than revenues for a prolonged (though not indefinite) period, if companies cut costs or reduce investment – a trend that would, over time, lower depreciation charges.
Chile made its transition to high growth in the 1980’s on the back of a large depreciation.
This means that the fiscal authorities have a big responsibility: to target a structural fiscal surplus that is high enough to generate the space needed for real exchange rate depreciation.
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