WHAT IS THE RIGHT CURRENCY FOR INVESTMENT?

This question is the most urgent for a potential investor. Indeed, there are a lot of currencies, but one of them can actually make a profit, you need to be able to guess. Specialists of the exchange business advise “not to put all the eggs in one basket.” Investing in the currency is recommended to be divided into 4 or more “purses”, then the risks will be minimal.

US Dollar

Traditionally, the first part of savings is desirable to invest in dollars. The US currency currently holds more than half of all reserves in central banks. The US dollar is the base currency on the world market, the prices of other currencies are expressed in relation to it. At the same time, he has a lot of prices, and it is possible that with the growth of one another will fall. For example, the price of a pound is the amount of dollars that are given per pound. Consequently, when the price rises against the ruble, the price may drop relative to the pound. The American economy is in the lead, as is indicated by the interest on bank deposits in this currency. The US leadership, perfectly aware of the importance of its “greenery”, is trying its best to keep its power in the world and to strengthen the dollar rate. It is possible that such actions will be undertaken in the future, as they strengthen the authority of the state on the world stage.

Euro

The appearance of this currency has significantly shaken the “pedestal” of the US dollar. Despite periodically arising problems in the economy of Europe, this currency became the second after the dollar. The value of the euro is not provided by one specific country, but by all the countries that are part of the European Union. The states that were part of the European Union could boast of GDP growth, low inflation and a stable financial situation. The experiment to create a financial union was very successful. Unfortunately, at the moment everything is not so rosy. The countries of the European Union with an insufficiently strong economy slow down the development of the alliance. The euro has already predicted extinction more than once, but while it keeps afloat. Perhaps the currency will not disappear, but will be transformed into something new. Time will tell. In the meantime, this risk must be taken into account when creating a foreign currency portfolio and carefully weighing the pros and cons.

Yuan

Some of the funds can be invested in the Chinese yuan, which is already popular in Asian countries and is gradually strengthening its position. Investments in the currency of the People’s Republic of China are gaining quite wide popularity. By the way, the countries that are part of the BRICS, loans are given only in yuan, which helped this currency to penetrate the world foreign exchange markets. But with the fourth part of the investment you can already play.

Other Currencies

If you are not among the patriots, you can try to play with other more or less known currencies. By the way, it is worth paying attention to: the Japanese yen; Swiss frank; British pound sterling. Sometimes bring a good profit investment in the currencies of oil-producing countries, although this is risky. Unequivocally answer the question, what kind of currency should be preferred, it is impossible. But there are some recommendations for the formation of the investment portfolio: There is no need to rush from one extreme to the other. Suppose, for objective reasons, you prefer the euro, and most of the funds are invested in this currency.

In this case, with the fall of the euro and the growth of the dollar, you do not need to rush into exchange offices and change one to another. Both currencies are stable and will remain at their highest level for a long time. There are many reasons why the world economy can not refuse either the dollar or the euro. Determine the level of desired returns. Developing countries are slowly strengthening their currency, pay attention to them. Take into account and the acceptable level of risk. Save investment from changing interest rates will help “short” investment. In advance it is necessary to think about insurance of risks. After all, not just invented forwards, futures and options. Of course, the higher the hedge level, the lower the income can be calculated. It all depends on your propensity for risk. And most importantly – adhere to the planned tactics and do not turn aside at the slightest fluctuation in exchange rates.

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