Companies with sterling-denominated credit lines may find that their facilities are not big enough as a result of the pound's recent sharp fall, for instance.In this section Waiving or drowning?
Euro-denominated credit improved almost as much.
Cambodia has its own currency, the riel, but the economy essentially functions on the dollar, with 90 percent of deposits and credit in the banking system denominated in dollars.
We surmise that the coefficient of the exchange rate is insignificant because in Uganda mobile money is denominated in shillings and the bulk of bank credit is shilling, rather than foreign, denominated.
But credit is dangerously fickle, especially if it is denominated in a foreign currency.
As for "DKs," with the connotation of ignorance of all parties, I suspect these were pretty much what Credit Default Swaps seem to be today, only denominated in three or four fewer zeroes.
Subdued inflation in Switzerland and the euro zone mean that loans denominated in francs or euros carry much lower interest rates than credit in Hungarian forints or Polish zloty.
And though there's been a recent uptick in credit cards that have stopped chargingtransaction fees on purchases denominated in currencies other than dollars, most cards still charge them.
The country's banks had expanded aggressively in the last decade, and though they largely stayed away from troubled mortgage securities, the global tightening of credit this year left them unable to finance their debts, which are largely denominated in foreign currencies.
Moody's Investors Service raised Brazil's credit rating yesterday, saying a surge in exports and a reduction in debt denominated in foreign currencies will make it easier for the country to make bond payments.
Hungary is feeling the effects of the credit crisis not because its banks invested in bad mortgages, but because the credit markets have dried up, depriving it of the ability to service debts denominated in currencies other than the Hungarian forint.
