Taipei, April 23, 2012 (CENS) -- Taking advantage of the interest-rate differential between Taiwan and mainland China, many Taiwanese businessmen have borrowed U.S. dollar
loans from Taiwanese banks and deposited them at mainland Chinese banks, a practice known as "carry trade."
Hong Kong will maintain its currency peg with the U.S. dollar
, the head of the Hong Kong Monetary Authority said Thursday shortly after China dropped its policy of pegging the yuan to the U.S.
Also, the sinking U.S. dollar
and the soaring Canadian dollar have clearly hurt export-dependent Canada.
Economic policy analysts and formulators have been kept busy in recent years deciding if or when China should cease to peg the value of its currency, the yuan, to the U.S. dollar
Fred Bergsten, America's most authoritative proponent of the theory that the U.S. dollar
is "'overvalued" and "overrated," on January 4, 2002, described the precise circumstances under which the dollar would be dethroned from its status as the world's international reserve currency.
Several schedules require reporting in functional currency and conversion to U.S. dollar
amounts (Schedules C and H).
The regulations under subpart J seem to reflect a transaction's true economic substance, but only when an individual whose functional currency is the U.S. dollar
purchases an asset.
Currency risk is also a part of the equation when investing overseas; since the performance of foreign stocks is partially driven by the value of the U.S. dollar
. When you put $1,000 in an international fund, you're actually buying foreign currency your dollars--for French francs, Japanese yen or German marks--in order to buy stocks.
With the sharp appreciation of the Japanese yen against the U.S. dollar
from 125 to nearly 100 in the first six months of 1993, one wonders whether the fools have migrated to the foreign exchange market.
account balances held at Chase-Tokyo at the end of the Tokyo business day can be moved by advising Chase-Tokyo to transfer part or all of the balance in New York during the U.S.
The topic is the topsy-turvy currency market and the effects of the devalued U.S. dollar
on our integrated, global pulp and paper industry.