Second, China s foreign assets are denominated almost exclusively in US dollars, while its foreign liabilities are denominated mostly in renminbi.

Bank deposits, along with most other private and public debts, were denominated in that national currency.

Back in the 1970 s, there was some limited issuance of SDR denominated liabilities by commercial banks and SDR denominated bonds by corporations.

Acquisition security rights include those that are denominated as security rights, as well as those that are denominated as retention of title, arrangements and financial leases.

b Total public debt denominated in pesos and foreign currency.

They would also incur losses on their claims and investments denominated in euros.

With everyone else buying, selling, and holding dollars, it pays to do the same, since markets in dollar denominated assets will be the deepest.

About 800 billion of China s foreign exchange reserves are invested in euro denominated assets.

Because SDRs are denominated in several national currencies, no single currency would enjoy an unfair advantage.

As a result, holders of dollar denominated assets should be looking forward to two alternative scenarios.

In neither scenario does it make sense to hold huge amounts of dollar denominated assets today.

Of course, an earlier attempt was made to create a commercial market in SDR denominated claims.

And that raises serious questions about the wisdom of China s massive investments in dollar denominated assets.

Moreover, the debt is denominated in rupees and has an average maturity of more than nine years.

The actual budget increase cannot be determined simply by noting a change in the dollar denominated amount.

The nomenclature is varied and such treaties are often denominated treaties of establishment or treaties of amity.

With rebalancing will come a decline in China s surplus saving, much slower accumulation of foreign exchange reserves, and a concomitant reduction in its seemingly voracious demand for dollar denominated assets.

The interest rates on the euro denominated sovereign debt of the twelve euro zone governments are all very similar.

One might think that foreign investors would quake in terror at these terms and shy away from dollar denominated assets.

If rich country central banks can buy long term bonds, then emerging country central banks can buy dollar denominated bonds.

The yen s rising value raises the yield on Japanese bonds relative to the yield on bonds denominated in other currencies.

The most obvious means of recapitalizing China s banks would be to inject renminbi denominated government debt into the banking sector.

In November 2001, the authorities again restructured the public debt, this time exchanging dollar denominated bonds for domestic guaranteed loans.

That will sharply reduce the pace of foreign exchange accumulation and cut into China s open ended demand for dollar denominated assets.

China recognizes that it no longer makes sense to stay with its current growth strategy one that relies heavily on a combination of exports and a massive buffer of dollar denominated foreign exchange reserves.

In January 2005, the Argentine Government presented bond holders with a new debt restructuring deal, involving 152 bonds denominated in six different currencies amounting to roughly 82 billion and subject to eight legal jurisdictions.

Nor is it a unit of account prices of goods and services, and of financial assets, are not denominated in gold terms.

By plowing more than two thirds of its mammoth foreign currency reserves into US dollar denominated assets, China has gained significant political leverage.

A huge share of world trade is denominated in dollars, even if some OPEC presidents, such as Venezuela s Hugo Chávez, openly preach mutiny.

Holding euros and acquiring euro denominated securities have become attractive again around the world, pushing up the exchange rate and causing new difficulties.

In 1994, Mexico shook the global economy when the extent of its domestic (but dollar denominated) debt in the so called tessobonos became apparent.

Investors in the US and other countries cannot buy either renminbi or renminbi denominated bonds in the way that they can buy other currencies.

Second, the costs of the insurance premium the outsize, largely dollar denominated reservoir of China s foreign exchange reserves have been magnified by political risk.

In Europe, the market for Greek debt has frozen, and interest rate spreads between Irish and German euro denominated debt recently reached alarming levels.

Furthermore, China should be allowed to convert part of its foreign exchange reserves into assets denominated in the International Monetary Fund s special drawing rights (SDRs).

At the same time, periphery countries held a lot of dollar denominated obligations which they had to repay when they could not roll them over.

These problems can become particularly acute in an economy without an effective lender of last resort and or one that issues only domestically denominated debt.

The excess of saving over investment has given Japan a current account surplus, allowing the country to finance all of the government borrowing domestically, with enough left over to invest in dollar denominated bonds and other foreign securities.

Therefore, foreign speculators should, any day now, dump their dollar denominated assets onto the market, and so bring about the dollar decline that they so fear.

Some contracts denominated in euros would be subject to Greek law, some to European law, and others for example, derivatives contracts to British or US law.

The creditor countries, by contrast, would incur losses on their claims and investments denominated in euros and encounter stiffer competition at home from other eurozone members.

For the first time ever, in 2004, the Inter American Development Bank issued bonds that are denominated in the currencies of the countries in the region.

Because all of the accumulated debt is denominated in euros, it makes all the difference which country leaves the euro. If Germany left, the euro would depreciate.

Exporters of any particular commodity should issue debt that is denominated in terms of the price of that commodity, rather than in dollars or any other currency.

By contrast, if Italy left the eurozone, its euro denominated debt burden would become unsustainable and would have to be restructured, plunging the global financial system into chaos.