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

Owned and operated by Adrienne Mattos and Stephen Moore, AquaTech Swim School focuses on creating the best...

Penguin Computing is an open data center and high performance computing company that delivers processing and data...

Most people don’t think about the tools used to assemble a child’s car-seat or an airplane wing. Yet those tools are...

Aurionpro is a world-class technology company that has successfully grown its business by focusing on the...

Perpetual Energy Systems develops and finances small- and utility-scale renewable energy projects for commercial,...

Fiksu, a Boston-based mobile ad tech company, enables leading brands like Coca-Cola, Burger King, Dunkin' Donuts,...

Big Belly is the world leader in smart waste and recycling solutions, helping cities, towns, park systems,...

Commercial credit card programs can help companies segregate business transactions from personal transactions as...

After the financial crisis of 2008, risk management became a top priority for most businesses. MetricStream, a...

An Employee Stock Ownership Plan (ESOP) can be an effective way to create liquidity as well as serve as a means to...

Recent News

ABL Advisor
02/03/15
Privately held technology firm Zeeto announced that it has secured a $3 million...
02/02/15
San Jose, CA – February 2, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
01/28/15
San Jose, CA – January 28, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
01/27/15
Record Annual Earnings of $17.6 Million, Strong Loan Growth, Excellent Credit...
01/27/15
San Jose, CA – January 27, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
01/07/15
San Jose, CA – January 7, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
01/07/15
MIAMI & RESTON, VA. - January 07, 2015 - The Florida Venture Forum, a statewide...
12/16/14
San Jose, CA – December 16, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
12/16/14
San Jose, CA – December 16, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
12/04/14
San Jose, CA –December 4, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...

Twitter

Featured Insights

Featured Insight

Owned and operated by Adrienne Mattos and Stephen Moore, AquaTech Swim School focuses on creating the best...

Featured Insight

Penguin Computing is an open data center and high performance computing company that delivers processing and data...

Featured Insight

Most people don’t think about the tools used to assemble a child’s car-seat or an airplane wing. Yet those tools are...

Recent News

Banks are increasing commercial real estate (CRE) loans at a rate...

A new bill signed into law on Sept. 19,...

Twitter