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Übersetzungen für „domestic currency“ im Englisch » Arabisch-Wörterbuch (Springe zu Arabisch » Englisch)

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Englisch
The situation that most developing countries are not able to borrow abroad in their domestic currency is referred to original sin in economics literature.
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In countries with high inflation rates, the domestic currency tends to be gradually displaced by a stable currency.
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At the beginning of this process, the store-of-value function of the domestic currency is replaced by the foreign currency.
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Currency substitution can be used semiofficially (or officially bimonetary systems), where the foreign currency is legal tender alongside the domestic currency.
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A prolonged period of high inflation will induce the domestic currency to lose its function as medium of exchange when the public carries out many transactions in foreign currency.
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As a result, the value of domestic deposits will fall compared to foreign deposits, which leads to a depreciation of the domestic currency.
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Then, the unit-of-account function of the domestic currency is displaced when many prices are quoted in a foreign currency.
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Such bonds are often denominated in the country's domestic currency.
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It is impractical to transport large amounts of currency around the world and physically exchange domestic currency for the currency that your customer/supplier demands.
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Since foreign currency reserves of a central bank is limited, once the reserves are depleted, the domestic currency will depreciate.
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