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Depreciation in sentence

495 examples of Depreciation in a sentence

But they are in the minority, and even they can have problems, because depreciation reduces the dollar value of their domestic assets, causing breaches in loan covenants and potentially impairing access to credit.
For the many emerging-market firms that borrowed in dollars to generate local-currency revenue, the recent depreciation is triggering plenty of financial trouble.
Except for producing inflation in the eurozone, a depreciation, whether external or internal via price cuts, is the only possibility for an uncompetitive country to regain competitiveness and generate a structural current account surplus, which is the only possibility for orderly debt redemption.
The fact that the eurozone lacked the labor-market flexibility needed to make it an optimal currency area meant that adjustment via regional reallocation of economic activity would be glacial, while its members’ loss of control over monetary policy ruled out adjustment via nominal depreciation.
First, in order to relieve pressure on the peripheral countries (at least in part), the eurozone must export some of the needed adjustments through a significant depreciation of the euro, which is already taking place.
Global capital markets would recognize that a country with high unemployment might choose to pursue an inflationary policy or a policy or exchange-rate depreciation.
Facing an accelerated exchange-rate depreciation that, at one stage, almost halved the lira’s value, Turkey has taken a variety of measures that attempt to simulate – albeit partially – the traditional approach that emerging economies have tended to follow in the past.
Borrowing in foreign hard currencies is particularly risky, as depreciation of the local currency can cause liabilities to surge.
But, as recent experience has shown, a change in such conditions can force countries either to allow currency depreciation or to delay it by purchasing large amounts of local currency using the central bank’s foreign-currency reserves.
In any case, markets eventually force an often-sharp depreciation of the currency.
Depreciation of the euro would be the best medicine for restoring international price competitiveness to the periphery countries and reviving their export sectors.
If abandoning the euro is not the answer, depreciation by the entire eurozone is.
The answer was no: granting explicit power would undermine confidence in price stability, for already there was “difficulty restrain[ing] over-issue, depreciation, and fraud.”
Today, however, currency depreciation is a zero-sum game.
That, coupled with the 3% depreciation in the past few months, should send a strong signal to speculators that one-way renminbi bets are hazardous – a signal that could help dampen inflows of hot money, which have complicated liquidity management and fueled asset-market volatility in China.
The sharp depreciation of the euro after the crisis helped sustain German exports, thereby keeping the eurozone afloat.
The eurozone’s peripheral countries, including Greece, Portugal, Ireland, and Spain, found themselves pinned to the mast of the common currency, unable to gain competitiveness through exchange-rate depreciation.
And curtailing accelerated depreciation, the manufacturing production deduction, and the R&D tax credit – which account for about 80% of corporate-tax expenditures – would involve significant tradeoffs.
Eliminating accelerated depreciation for equipment would raise the effective tax rate on new investments; repealing the domestic-production deduction would increase the effective tax rate on US manufacturing; and rescinding the R&D tax credit would reduce investment in innovation.
To maintain growth, they need a nominal and real depreciation of their currency to reduce their trade deficits.
On the contrary, with their large external deficits, the PIIGS need a sharp depreciation to restore growth as they implement painful fiscal and other structural reforms.
If China, emerging markets, and other surplus countries prevent nominal currency appreciation via intervention – and prevent real appreciation via sterilization of such intervention – the only way deficit countries can achieve real depreciation is via deflation.
If nominal and real depreciation (appreciation) of the deficit (surplus) countries fails to occur, the deficit countries’ falling domestic demand and the surplus countries’ failure to reduce savings and increase consumption will lead to a global shortfall in aggregate demand in the face of a capacity glut.
Because the exchange rate influences an economy's competitiveness, the euro's depreciation benefited EU exports and exporters--t the expense of their American counterparts.
Moreover, all feasible policy options to jump-start growth – including a bold, eurozone-wide (not just German) fiscal stimulus and substantial, internationally coordinated euro depreciation – have been ruled out.
Because of its large trade surplus ($40 billion in 1997) and increasing foreign exchange reserves ($139.9 billion, equal to 15% of GDP) China is struggling against the pressures of the RMB’s appreciation, rather than depreciation.
Another factor working against RMB depreciation is that deterioration in China’s balance of payments may not improve China's international competitiveness.
Depreciation, moreover, may also not improve the competitiveness of Chinese goods either, as up to 40% of China’s exports nowadays are from manufacturing industries using imported parts and materials.
While currency depreciation has created opportunities for Japanese exporters, the combination of increasing import costs and rising interest rates creates a weak incentive for domestic investment and capital formation.
Rather than allow the renminbi’s value to decline as fast as markets would dictate, the PBOC has stepped in to limit capital outflows and offset depreciation pressure.
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