Devaluation means a deliberate attempt by a government or central bank to
lower the value of its currency in foreign - exchange markets.
«When I traveled to Europe, the Euro was at an all - time low so I decided to take advantage of
the low value of their currency and was able to buy expensive handbags at a discount.»
Countries will also try to
lower the value of their currency.
Not exact matches
The trade deal could also give the U.S. leverage to negotiate an end to
currency manipulation, which keeps the
value of some U.S. trading partners»
currencies artificially
low.
As a result, the
value of the Russian
currency, the ruble, has deteriorated by 30 % against the dollar so far this year, routinely hitting new record
lows along the way.
So shared Wong's sentiment on apparent ineptitude among Chinese officials, suggesting that the PBoC's decision to fix the yuan
lower against the dollar in recent days had given the impression the central would not defend the
value of the
currency for the time being.
The country's
currency slid below 70 U.S. cents last week, causing some to recall early 2002, when Canadian officials were forced to beg international investors to recognize that the inherent
value of Canada's
currency was greater than 63 US cents, the record
low to which it had fallen at the time.
A
lower dollar also softens the blow
of the commodity crash by increasing the
value of sales priced is the U.S.
currency.
The terms
of trade is influenced by the exchange rate because a rise in the
value of a country's
currency lowers the domestic prices for its imports but does not directly affect the commodities it produces (i.e. its exports).
That trend won't continue, and it will still be some while before Bitcoin has the kind
of low volatility that makes it a reasonable store
of value or unit
of account for people whose alternatives are the dollar, the Euro, and other major
currencies.
The SNB's «profit was lifted by a trio
of positive forces:
Low bond yields preserved the
value of its foreign bonds; higher equity prices raised the
value of SNB holdings... and the weaker Swiss
currency made those foreign assets worth more in franc terms.»
In addition to things like better fraud protection and
lower fees, the biggest benefit
of digital
currency is inherent in its existence — while there are cybersecurity concerns, the
value is not tied to the political or economic climate
of one nation.
In contrast to the strength in volumes, the
value of total imports declined by around 5 per cent over the year to the December quarter, as the
currency appreciation has
lowered Australian dollar import prices.
-LRB-...) But a new paper by former senior U.S. Federal Reserve economist Joseph Gagnon says
currency intervention — when a government forcibly
lowers the
value of their exchange rate — has an impact on other economies several times larger than originally thought.
The country's central bank has pushed the
value of the
currency lower for three consecutive days.
When you realize that there are networks out there
of users that are very geographically dispersed... and they're doing high - frequency,
low -
value transactions, using a digital
currency for those makes a lot
of sense.»
We know the US President can
lower the
value of the Dollar, but it's not an easy task when everyone wants a weaker
currency.
A major instrument for
lowering wages has been depreciating the
value of the
currency, since this reduced the
value of wages without officially reducing them in the local
currency.
Central banks control interest rates like a puppet on a string by raising interest rates or buying up bonds to increase the
value of their
currency, or
lowering interest rates and selling bonds to decrease it.
«Credit cards provide a lot
of value through initial rewards bonuses and 0 percent financing deals, but they also offer $ 0 fraud liability guarantees, the
lowest possible
currency conversion rates and even car rental insurance coverage,» said Jill Gonzalez, an analyst with CardHub.com, a credit card information site.
If the dollar gets much
lower against the major
currencies of our world, I would expect to see some
currency intervention to try to raise the
value of the US dollar.
In response, the Swiss National Bank (SNB) has tried to intervene multiple times in the
currency market to keep the
value of the Swiss franc
low.
A deep ITM
currency option (FX option) where the strike
currency has a
lower interest rate than the
currency to be received will often be exercised early because the time
value sacrificed is less valuable than the expected depreciation
of the received
currency against the strike.
If the Germans had decided to issue bonds to striking workers instead
of money, bond prices would have been driven to ridiculously
low levels, driving interest rates to extremely high levels, creating an unwillingness to hold
currency (which does not bear interest), resulting in a rapid deterioration in the
value of money, and hyperinflation just the same.
Due to the
low value of Choice Privilege and Hilton HHonors points, it is not immediately useful to move your Amtrak points to either
of these
currencies — at the end
of the day, you'd be loosing, on average, approximately 50 %
of your total
value.
Any trader who pays enough attention to the state
of the financial markets is able to enjoy success by purchasing their chosen
currency while it has a
low value and then selling it back once its
value has risen.
The spreads in Forex trading are also much
lower than in the traditional stocks and shares market which results in a smaller difference between the
values of currencies while purchasing and selling.
On January 15, 2015, when the Swiss National Bank eliminated its
currency's Euro - peg, the
value of that
currency moved 30 % in minutes, wiping out many
currency traders in what were thought to be
low - risk arbitrage - like investments.
I wrote about the dynamic
of why either
of a
lower or higher exchange rate would be good for economies in Would dropping the
value of its
currency be good for an economy?
In the early 2000s, Record championed
currency as a separate asset class for its clients to invest in... nothing like the barrow boy approach to FX trading, rather a systematic medium / long - term approach to mining excess returns from
currency markets, via the Forward Rate Bias (the tendency
of higher interest rate
currencies to outperform
lower rate
currencies — i.e. the carry trade), and other strategies (like
value & momentum).
This is one
of the reasons why US inflation is so much
lower than much
of the rest
of the world, and the government should be more honest about the
value of our
currency.
For instance,
currency futures typically need a margin that amounts to a
low single - digit percentage
of the
currency contract's
value.
See the Investor Handbook for more information on Franklin Templeton 529 College Savings Plan, including sales charges, expenses, general risks
of the Plan, general investment risks and specific risks
of investing in Plan portfolios, which can include risks
of convertible securities; country, sector, region or industry focus; credit; derivative securities; foreign securities, including
currency exchange rates, political and economic developments, trading practices, availability
of information, limited markets and heightened risk in emerging markets; growth or
value style investing; income; interest rate;
lower - rated and unrated securities; mortgage securities and asset - backed securities; restructuring and distressed companies; securities lending; smaller and midsize companies; credit linked securities, life settlement investments, and stocks.
Many common stocks issued today do not have par
values; those that do (usually only in jurisdictions where par
values are required by law) have extremely
low par
values (often the smallest unit
of currency in circulation), for example a penny (USD$ 0.01) par
value on a stock issued at USD$ 25.00 / share.
But still — having both cards allows these two benefits to stack up and get some pretty good
value out
of ThankYou points compared to other
currencies if you want to limit your cash spending, especially if you can use it on a hotel with
low taxes.
«But there are encouraging signs that we are turning a corner in 2017, and whilst growth is more muted, there is definitely an acceptance
of the new normal, with a desire to move forward again in a climate
of lower -
valued currencies, less government spending and
lower GDP growth.
I feel I should
lower the
value of United's
currency due to these added restrictions even though I still see myself finding plenty
of opportunities to get around 2 cents
of value.
While this card will never offer the outsized
value possible with transferable
currencies, it is useful for redemptions when the cents per point
value of other cards would be relatively
low.
Neither the shopkeeper nor the customer would know how to correctly price the candy bar at any given time, since the
value of the virtual
currency undergoes such extreme highs and
lows.
Still, Ehrsam sought to position Ethereum as moving the development
of «digital
currency» and its technology forward, emphasizing that Coinbase intends to support both protocols, and that it sees them growing together to become «
low - level protocols» in what could be a new Internet for
value exchange.
As there are not many arguments why Bitcoin is a better store
of value or unit
of account than fiat
currencies like euros or dollars, it is obvious that as a method
of payment Bitcoin is superior to fiat
currencies, due to
lower costs, nearly perfect divisibility and social inclusion to name but a few.
The most reasonable explanation for why the Ethereum
currency dropped from a high
of $ 311.46 on Monday to a
low of $ 238.65 is that a market correction is taking place for the out
of control
values of digital
currencies.
Alternatively, increase in Bitcoin price may cause the hash rate
of other virtual
currencies to fall, decreasing their transaction verification efficiency and
lowering their
value.
Ease
of access to various types
of currency, near - instant transfer
of value and
low transaction fees are a must for any experienced
currency trader out there.
While first met with a fair amount
of enthusiasm and interest, the
currency has since dropped and held at very
low values only around a dollar each.
While a money transfer between two parties in different African nations routinely costs more than 10 percent
of the transaction's
value, and central bankers are sometimes not resistant to the temptation to print more money, Bitcoin has extremely
low costs as a payment settlement network and has a monetary policy that is essentially controlled by the users
of the digital
currency.
But the bet laid down by bitcoin cash supporters is that the
value proposition
of a rarely traded and expensive digital gold is
lower than a widely - used money that maintains enough
of the properties
of a blockchain - based
currency.
There are a lot
of merchants out there already accepting Bitcoin payments, but until potential customers can easily acquire digital
currency, the transaction
value will remain
lower than it could be.