Not exact matches
As long as
countries maintain
weak -
currency policies, the risk of other
countries resorting to competitive devaluations will remain.
Abe's push for more aggressive action has weighed on the yen and bolstered the stock market as investors anticipate a
weaker currency will bolster earnings of the
country's exporters.
But the mechanics of the euro guarantee escalating tension: The single
currency makes the exports of
weaker countries artificially expensive (and those of Germany excessively cheap), putting their economies at a crippling disadvantage.
China's surprise decision to revalue the yuan as it tried to contain the stock market turmoil caused the
currency to drop the most in 21 years last month, triggering exchange - rate declines elsewhere in the emerging world on concern that a
weaker yuan will hurt
countries exporting to China.
The emerging market slaughter will continue, especially for
countries with
weaker fundamentals; their equities,
currency and local
currency bonds and foreign
currency bonds bearish slump has not yet reached the bottom.
While China is usually singled out for its policies, other
countries have behaved more irresponsibly, most notably rich Germany, whose surpluses, the largest in history, were built primarily on an undervalued
currency, after the creation of the euro, and on
weak wage growth, after the 2003 — 05 labor reforms.
As I told you back in May, the U.S. reclaimed its longstanding title as the world's number one wheat exporter this year, displacing Russia, whose
weak currency gave the Eastern European
country a competitive advantage.
Historically whenever global demand is
weak, and unemployment high,
countries will try to gain a larger share of that demand by reducing wages or otherwise taxing households to subsidize production (devaluing the
currency is just a way to tax the consumption of imports and to subsidize exporters).
Currency strategists gave
weaker exchange rate forecasts for major emerging
countries such as China, Brazil, South Africa and Turkey in the monthly survey, pointing to a sixth straight year of dollar gains against most high - yielding
currencies.
U.S. officials demonize foreign
countries as aggressive «
currency manipulators» for keeping their
currencies weak.
For the most part, it's better for a
country to have a
weaker currency because then more
countries will be attracted to buy their products.
Lagarde also said that in
countries with
weak institutions and unstable national
currencies it may be preferable to move to a digital
currency rather than adopting the
currency of another
country such as the U.S. dollar.
A
weak local
currency makes a
country's goods less expensive for foreign buyers.
Mexico is picked for the maximum visual, with its heavy dependence on the US for trade and cash repatriation, for its
weak economy and
currency, for its limited
currency reserves,... Mexico is the mostly likely
country to capitulate in a trade way with the US.
While the
country has a strong mining and construction economy, the realities of its
weak currency are hard to overcome.
This statement had much to do with the recent devaluation of the Japanese Yen and the fear of a
currency war emerging as
countries seek out a
weaker currency to help stimulate domestic growth.
While a weakening domestic
currency can be painful for citizens whose wealth is stored in that
currency, there are reasons that certain governments prefer a
weaker currency, especially for
countries that are net exporters.
Latin America is especially important for us because many its
countries tend to have
weak currencies, and people are increasingly aware of the importance of access to digital
currency.»
«Instead of adopting the
currency of another
country — such as the U.S. dollar — some of these [
weak] economies might see a growing use of virtual
currencies.
In the same way, if the stock market in one
country starts performing better than the stock market in another
country, you should be aware that this could lead to a rise in value of the
currency for the
country with the stronger stock market, while the value of the
currency could depreciate for the
country with the
weaker stock market.
In the case of a
weaker home
currency, you are bringing a strong forgiven
currency into the
country.