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Dollar in sentence

3262 examples of Dollar in a sentence

Because America’s economy is so large, and the dollar so central to global finance, chronic US budget deficits mean huge global repercussions.
The dollar is weakening, as financial markets understand that the US will need to borrow huge sums from abroad for years to come.
After all, why should the central banks of China, Japan, South Korea, and other Asian countries accumulate vast holdings of US Treasury bills if the dollar is likely to lose value in the years ahead?
Foreigners will become less enthusiastic about continued lending to the US, weakening the dollar further, forcing up US interest rates, and threatening to undermine America’s stock market and consumer spending.
A financial-market heavyweight, it now outperforms the dollar, the yen, and, until recently, the mighty Chinese yuan, while euro-denominated bond trading rivals the US market in size.
The renminbi’s gradual yet sustained appreciation against the US dollar is the cost shock’s main driver, but the demand shock that followed the 2008 global financial crisis aggravated the situation.
Economic arguments failed to win them over – the decline of the Euro vis-a-vis the Dollar obviously playing an important psychological role in this.
Economic theory suggests that, in principle, a BAT could push up the value of the dollar by as much as the tax, thereby nullifying its effects on the relative competitiveness of imports and exports.
Moreover, the balance-sheet effects of dollar appreciation would be large.
Meanwhile, the highly indebted emerging economies would face ballooning dollar liabilities, which could cause financial distress and even crises.
Even if the US dollar appreciated less than the BAT, the pass-through from the tax on imports to domestic prices would imply a temporary but persistent rise in the inflation rate.
The impact will be particularly powerful in emerging countries, where currencies are vulnerable to a rising dollar and tightening liquidity conditions in the US.
Thus, Harvard’s Carmen Reinhart, an authority on global debt crises, believes the Fed will “favor gradualism” to avoid wreaking havoc in emerging economies that are overloaded with dollar debts.
And the dollar has appreciated against most currencies, undercutting US exporters’ competitiveness, again in line with theory.
Pressure was already growing to introduce trade sanctions in response to China’s refusal to allow its currency to rise to a natural level against the dollar.
A dollar crisis could weaken the foundations of American power.
The US uses only half as much oil per dollar of production as it did before the price spikes of the 1970’s.
For example, one report concluded that, from 2005 to 2006, less than two cents of every dollar in official development assistance was targeted toward gender equality for girls.
In other words, the average middle-class American can buy 29% more for each dollar than if there was no trade.
CAMBRIDGE – Zhou Xiaochuan, the governor of the People’s Bank of China, recently suggested that replacing the dollar with the International Monetary Fund’s Special Drawing Rights as the dominant reserve currency would bring greater stability to the global financial system.
Transforming the dollar standard into an SDR-based system would be a major break with a policy that has lasted more than 60 years.
Although the euro, created in 1999, turned out to be a more serious competitor to the dollar, its share in total international reserves has probably remained below 30%, compared to 65% for the dollar (these shares are in part estimates, as China, the world’s largest holder of reserves, does not report the currency composition of its holdings).
One possibility is a gradual, market-determined erosion of the dollar as a reserve currency in favor of the euro.
But, while the euro’s international role – especially its use in financial markets – has increased since its inception, it is hard to envisage it overtaking the dollar as the dominant reserve currency in the foreseeable future.
The latter condition may already have been partially met, but US policies to stabilize its financial system should help avoid a major dollar slide.
The idea was to permit countries whose official dollar holdings were larger than they were comfortable with to convert dollars into SDRs.
Conversion would occur outside the market, and thus would not put downward pressure on the dollar.
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.
The US also lost interest in the scheme as the dollar strengthened.
But the changed international climate, and the possibility of a bout of severe dollar weakness, could convince the US to go along with a conversion scheme that would alleviate excessive pressure on the dollar.
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