It, and the foreign currency debt servicing payments, are therefore subject to valuation effects when the exchange rate changes;
currency depreciation increases the debt - servicing costs in Australian dollar terms.
Not exact matches
Unless these firms» net foreign
currency liabilities are hedged, a
depreciation of the Australian dollar could result in a deterioration of their balance sheet positions — by
increasing the Australian dollar value of their liabilities relative to their assets.
In late November, China's foreign exchange agency released a three - line statement saying it was set to
increase its scrutiny of outbound merger and acquisition (M&A) transactions in an attempt to combat «fake deals», which are put together simply to move renminbi offshore to avoid an anticipated
depreciation in the Chinese
currency.
The sharp
currency depreciations in these countries have led, in varying degrees, to
increased inflation although, in most cases, it remains well contained.
Earnings in Indonesia were also expected to fall this year because of
increased competition from new rivals such as Big Cola, rising labour and fuel costs and
currency depreciation.
The projected
increase has been linked to a number of international indicators as well as a slight
depreciation of the local
currency.
This was largely due the stabilized
depreciation of the Ghana Cedi against major trading
currencies and the relative
increase in power supply.
What is more clear is that an
increase in price inflation, or greater
currency depreciation would leave a sour taste in the mouths of buyers of Treasury securities.
Despite the Argentina exposure, I argued that in the face of
increased political risk,
currency depreciation and high / hyper - inflation, real assets are what people seek out.