The sharp
currency depreciations in these countries have led, in varying degrees, to increased inflation although, in most cases, it remains well contained.
Regarding U.S. monetary policy, the IMF said it still remains «very accomodative,» but that the possibility of future rate hikes «have contributed to tighter external financial conditions, declining capital flows, and further
currency depreciations in many emerging market economies.»
Not exact matches
For foreigners investing
in Japanese stocks, the yen also poses a challenge, analysts said, with the rapid
depreciation in the
currency — which has fallen 14 percent against the U.S. dollar
in the past three months - mitigating gains
in the market.
The PBoC described the devaluation as small compared with the yuan's appreciation
in recent years or the
depreciation of the
currencies of its economic rivals
in Asia and Europe.
The bank is,
in common with its American counterparts, concerned about people using its credit facilities to buy cryptocurrencies and then not being able to pay back the loan, due to rapid
depreciation in the virtual
currencies.
A country's trade balance typically worsens after the
depreciation of its
currency before any subsequent rise
in exports.
In a statement addressing the company's demise, Hansen said that while there were fans of Mexx's latest collections at both the industry and customer levels, «macro-economic headwinds» including a slowdown in retail sales in Europe, Russia's currency depreciation and Eastern European political unrest meant the company's health couldn't be revived to fighting for
In a statement addressing the company's demise, Hansen said that while there were fans of Mexx's latest collections at both the industry and customer levels, «macro-economic headwinds» including a slowdown
in retail sales in Europe, Russia's currency depreciation and Eastern European political unrest meant the company's health couldn't be revived to fighting for
in retail sales
in Europe, Russia's currency depreciation and Eastern European political unrest meant the company's health couldn't be revived to fighting for
in Europe, Russia's
currency depreciation and Eastern European political unrest meant the company's health couldn't be revived to fighting form.
In addition, the substantial
currency depreciations experienced by emerging countries since May make their exports even cheaper to buy.
Still, Beijing experts are forecasting a gradual
depreciation in the Chinese
currency.
In the past few weeks, though, the focus of the worry has quickly turned from domestic to international, with countries from India and Indonesia to Brazil hit by massive capital outflows and rapid
currency depreciation.
Russell told CNBC that the
depreciation of the Malaysian
currency has more than offset the benefits that cheaper oil have on the price of fertilizers, resulting
in higher input costs for the tea grower.
«Clearly,
currency depreciation alone is no panacea for a quick revival of Canada's manufacturing heartland,» Marion said
in a research note.
Because most wealthy Chinese seem to think about RMB
in terms of USD or Hong Kong dollars, it is the fear that any
depreciation of the RMB against those two
currencies (the Hong Kong dollar is pegged to the USD through a modified
currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.
Some analysts said the sharp swings
in offshore exchange rates and borrowing costs appeared to be engineered by the Chinese leadership, as a way to ease
depreciation pressure on the renminbi and to discourage speculation — namely short - sellers, investors who bet on declines
in the
currency, often by using borrowed funds.
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.
A long position
in a foreign
currency derivative is one that would profit from a
depreciation of the Australian dollar against that foreign
currency.
Historically, after a country experienced a financial crisis, growing foreign demand and
currency depreciation have often led to a sharp improvement
in the trade account that has put a floor under economic activity.
If the Chinese surplus should rise against the U.S. after a decrease
in the trade deficit with Mexico, the U.S. must then do the equivalent of a
currency depreciation via a tariff against Chinese goods to force a rebalancing of trade which to me seems like a reasonable plan.
Adjusted EBITDA is defined as net income / (loss) from continuing operations before interest expense, other expense / (income), net, provision for / (benefit from) income taxes;
in addition to these adjustments, the Company excludes, when they occur, the impacts of
depreciation and amortization (excluding integration and restructuring expenses)(including amortization of postretirement benefit plans prior service credits), integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity hedges, impairment losses, losses / (gains) on the sale of a business, nonmonetary
currency devaluation (e.g., remeasurement gains and losses), and equity award compensation expense (excluding integration and restructuring expenses).
The net benefits of lower oil prices and
currency depreciation coupled with an already evident US rebound may not have been given enough time to lift GDP growth
in other regions of the country.
In contrast to the movements of the euro and the yen, EM
currency depreciation has been ongoing.
What matters more is whether this change ushers
in a period of sustained
currency depreciation.
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 currenc
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 currenc
in an attempt to combat «fake deals», which are put together simply to move renminbi offshore to avoid an anticipated
depreciation in the Chinese currenc
in the Chinese
currency.
James Hunt, portfolio manager of the Tocqueville International Value Fund (TIVFX), answers questions about the fund, the state of various international markets,
currency depreciation and the decline
in oil prices.
Between late 1998 and the middle of 1999, the Australian dollar appreciated by around 6 per cent, both
in import - weighted terms and against the major
currencies, retracing around half of the earlier
depreciation.
Beyond that, emerging market (EM) commodity producers are likely to suffer further
currency depreciation, while EM manufacturers should start to benefit from the steady recovery
in the US.
The point which Ben very appropriately emphasizes is that unmanaged secular stagnation
in one place is contagious — that a higher level of saving over investment leading to low interest rates
in one place, leads to current account surplus, leads to a capital outflow, which then leads to
currency depreciation, leads to
currency appreciation
in other places, and leads therefore to spreading low demand and low interest rates everywhere.
Emerging market bonds
in their own
currencies have a similar justification to emerging market equities, especially since the
currency depreciation against the dollar is likely to slow or stop altogether.
Conversely, inflationary pressures
in the tradable sector will be generated by any
depreciation of the exchange rate, although it can take some time for
currency movements to be reflected fully
in the prices of imported consumer goods and services (Chung, Kohler and Lewis 2011).
Finally, the extent of internal policy incoherence was accentuated by the
currency depreciations caused by the sudden midyear reversal
in cross-border capital flows.
The
currency depreciation will give a significant boost to import prices, lifting the overall inflation rate further above the trough reached
in the December quarter 1997.
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.
Declines
in asset prices have become widespread across the region,
in many cases amplified by the higher interest rates put
in place to resist
currency depreciations.
The Group of 20
in Seoul Korea last week accused the United States of competitive
currency depreciation and financial aggression, and countries stepped up attempts to shun the dollar and indeed, to avoid running trade and payments surpluses as such.
Events
in global foreign exchange markets have been dominated by the
depreciation of the US dollar against all the major
currencies that freely float against it.
The US dollar has traded
in a relatively stable range against the major
currencies over the past six months, following the broad - based
depreciation that began
in early 2002 (Graph 20).
To a lesser extent, Singapore and Taiwan have also lost competitiveness
in foreign markets, having had smaller
currency depreciations than those of the initial crisis - affected group.
A number of countries
in the region whose
currencies have been tied to the US dollar (including China, Hong Kong and Malaysia) have benefited from its decline, with real
depreciations aiding export growth.
You'll notice that many of the YTD returns are different when adjusted for local
currency appreciation or
depreciation and the relative devaluation of various emerging market
currencies is another theme that has come to the fore
in 2014.
Business Insider,
in fact, just shared a Goldman Sachs chart showing how miniscule the renminbi's
depreciation really is compared to other emerging countries»
currencies.
To be clear, this should not prevent the ECB from hiking rates before 2021, but the result is a «soft guarantee» and a stronger case for policy divergence with the US, which the ECB hopes will eventually result
in currency depreciation.
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.
He speaks on issues
in 2016 budget, the need for the Federal Government to prevent
currency crisis
in Nigeria, the decline
in Nigeria's foreign trade by N2.5 trillion and
depreciation of the naira.
For it seemed to the creators of OCA, and continues to seem now, that changes
in relative prices and wages are much more easily made via
currency depreciation than by renegotiating individual contracts.
Last year, the local
currency suffered a 15.7 percent
depreciation, whilst
in 2014, it was even higher at 30.9 percent.
This was largely due the stabilized
depreciation of the Ghana Cedi against major trading
currencies and the relative increase
in power supply.
Leveraged buyouts,
depreciation in currency positions, and substantial adjustments to intangible property, such as patents and copyrights, can also contribute to negative shareholder equity.
Hedging would be a plus when the Canadian dollar strengthens, because a
depreciation in foreign
currencies reduces the value of those foreign holdings.
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.
The fact that India's
currency is
in a
depreciation mode against the US Dollar has actually worked
in the favor of the tech sector.