VOA慢速英语20061027b

ECONOMICS¹ REPORT - Dollar Is World's Most Traded Currency. But Why?By Mario Ritter

Broadcast: Friday, October 27, 2006

This is the VOA Special English Economics Report.




A listener in Manaus, Brazil, Luiz Roberto Alves da Costa, has a question about money. He asks why the American dollar is more stable or secure than most currencies in the international monetary² system.

Stability³ in the value of a nation's currency depends on foreign exchange markets and economic conditions.

The clearest measure of stability is the exchange value of a currency over time. Trading takes place on foreign exchanges around the world.

Since nineteen seventy-six, most major economies have used a system of floating exchange rates to value their currency. This means the value of one currency is always changing in relation to others.

People who travel pay the spot exchange rate when they have to trade currency. If they wait long enough at the exchange office, they might see the rates change a little within hours or even minutes.

Companies and individuals buy and sell an estimated six hundred thousand million dollars on the spot market each day.

The dollar is by far the world's most traded currency. And it is worth more than most. The euro, however, is currently⁴ worth about one dollar and twenty-seven cents. And the British pound buys almost two dollars.

A costly⁵ currency adds to the price of exports. That can hurt economic growth. Trade deficits⁶ can also grow because a strong currency lowers the cost of imports.

Inflation⁷ is another influence on the value of money. High inflation cuts the buying power of a currency over time.

The United States currently has a yearly inflation rate of about three percent. The Federal Reserve considers this within acceptable⁸ limits.

This week the central bank left interest rates unchanged for the third month, after seventeen increases. Economic growth has slowed this year and inflationary pressures are expected to ease over time.

Even the strongest currencies change in value over time. But there is one basic reason why the market for dollars is mostly stable. The dollar is the currency of the world's biggest economy, worth twelve million million dollars.

Larger markets are generally more stable than smaller ones. And nations that trade with the United States, especially in East Asia, continue to accept dollars for the goods they sell to Americans.

But there are other issues to consider about the dollar and its place in the world, and we will examine these in an upcoming report.

And that's the VOA Special English Economics Report. I'm Mario Ritter.

1 economics   

n.经济学，经济情况

参考例句：

• He is studying economics,which subject is very important.他正在学习经济学，该学科是很重要的。
• One can't separate politics from economics.不能把政治与经济割裂开来。

2 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

3 stability   

n.稳定，稳固

参考例句：

• The situation is tending towards stability.局势趋于稳定。
• She lacks emotional stability.她的情绪不稳定。

4 currently   

adv.通常地，普遍地，当前

参考例句：

• Currently it is not possible to reconcile this conflicting evidence.当前还未有可能去解释这一矛盾的例证。
• Our contracts are currently under review.我们的合同正在复查。

5 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。

6 deficits   

n.不足额( deficit的名词复数 )；赤字；亏空；亏损

参考例句：

• The Ministry of Finance consistently overestimated its budget deficits. 财政部一贯高估预算赤字。 来自《简明英汉词典》
• Many of the world's farmers are also incurring economic deficits. 世界上许多农民还在遭受经济上的亏损。 来自辞典例句

7 inflation   

n.胀大，夸张，通货膨胀

参考例句：

• Gold prices are often seen as an indicator of inflation.黃金价格常常被看作是通货膨胀的指标。
• The inflation of the airbed took several minutes.给空气床垫充气花了几分钟时间。

8 acceptable   

adj.可接受的，合意的，受欢迎的

参考例句：

• The terms of the contract are acceptable to us.我们认为这个合同的条件可以接受。
• Air pollution in the city had reached four times the acceptable levels.这座城市的空气污染程度曾高达可接受标准的四倍。