Currency wars could impact fx trading

Worried about how "currency wars" may impact your business and its ability to compete internationally? Many company owners are becoming increasingly concerned about currency devaluation overseas and whether it could leave a lasting mark on foreign exchange markets and business opportunities overseas.

Currency wars starting?
It's important to understand what the term means before getting worried about how it will impact your company. A currency war refers to an attempt by a country to gain an economic advantage by devaluing its money, something that has happened in nations across the world for decades. It has recently been in the news more as the Group of Seven countries publicly restated its commitment to market-determined exchange rates, rather than artificially created ones. The statement comes in light of Japan's new devaluation policies that are causing the yen to weaken dramatically. However, it's not just Japan that's employing such tactics.

"The currency war is intensifying: the number of participants is rising, fresh policy tools are being used to fight and the scale of influence on the wider foreign exchange market is increasing," read research from British bank HSBC.

HSBC called out Japan and Switzerland as some of the countries guilty of employing currency war strategies.

Coping with devaluation when trying to do business overseas
As various nations across the world attempt to devalue their currency and boost their economies, companies expanding globally need to be aware of what policies are in place and how those monetary tactics will have an impact on their business. Firms new to global business may want to work with a financial institution well-versed in international banking inquiries and foreign exchange markets. Not only can currency devaluation have an impact on stocks, it can also have an effect on the price of materials, cost of consumer goods and even labor expenses.

But where can you find a professional who knows how to guide an expanding and growing company? Try your local small or mid-sized bank. While you may assume a larger financial institution has the answers, working with a smaller firm allows you to not only get the solutions you seek, but enjoy more personalized services and custom options that can benefit your business.

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

Venture capital firms have been...

Global currency markets have been experiencing larger than normal swings of late and with greater frequency, CFOs...

Despite U.S. Federal Reserve Chair Janet Yellen earlier indicating every meeting of the Federal Open Market...

The U.S. economy experienced modest growth in the second quarter this year, with the U.S. Department of Commerce...

The city of Wilmington, Delaware, will be the home to a...

When it comes to market performance for investors, venture capital has staked its claim as the leader. According to...

Seeking out venture capital investment requires a careful attention to detail and a firm grasp of the underlying...

The complexity of transitioning to an Employee Stock Ownership Plan (ESOP) can be intimidating, says Elisabeth C....

Before a bank can help you identify products and services that can make your business run more efficiently, you need...

While some economists and market watchers are fretting over the way crowdfunding and super angels are upending the...

Recent News

08/21/15
Last week’s devaluation of the Chinese Renminbi has continued to keep the foreign...
07/28/15
The Euro opened the week stronger within an overall risk-off context climbing from...
07/24/15
Well things have slowed down a bit in the currency markets this week with the Greek...
07/17/15
Another exciting week in the foreign exchange markets comes to an end today with...
07/10/15
While nothing has ‘really’ changed with the Greek situation, plenty has happened...
07/02/15
If you happen to be growing tired of ‘Grease’ lyrical references, imagine how tired...
06/30/15
PHOENIX - Western Alliance Bancorporation (NYSE: WAL) today completed its merger...
06/26/15
In a fairly uneventful week in terms of economic data, the Greek situation was at...
05/21/15
Michael Hengl and Ryan Banta to lead new teams at Bridge Bank San Jose, CA – May 19...
05/19/15
San Jose, CA – May 19, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...

Twitter

Featured Insights

Featured Insight

Global currency markets have been experiencing larger than normal swings of late and with greater frequency, CFOs...

Featured Insight

The complexity of transitioning to an Employee Stock Ownership Plan (ESOP) can be intimidating, says Elisabeth C....

Featured Insight

Before a bank can help you identify products and services that can make your business run more efficiently, you need...

Recent News

Venture capital firms have been...

Despite U.S. Federal Reserve Chair Janet Yellen earlier indicating every meeting of the Federal Open Market...

The U.S. economy experienced modest growth in the second quarter this year, with the U.S. Department of Commerce...

Twitter