Currency diversification

Currency diversification

Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency.

Currency Diversification

Any investment strategy that involves investing in securities denominated in several currencies. For example, one may buy stocks that trade in U.S. dollars, British pounds, Japanese yen, and euros. One conducts a currency diversification strategy to reduce the foreign exchange risk involved in trading with only one or two currencies.
References in periodicals archive ?
While that takes away an advantage that some investors may be looking for in the form of currency diversification, it also eliminates the risk of your returns being eroded by currency losses.
This year, it added bespoke investment solutions covering multiple asset classes, across geographies, granting clients access to multi assets, income and currency diversification solutions.
With the SDR providing a stronger glue at the international monetary system's core, prudential currency diversification could have been made easier, the need for costly and inefficient self-insurance could have been reduced, and the provision of liquidity could have been made less pro-cyclical.
based investors, they obtain securities diversification plus currency diversification.
High net-worth individuals seeking geographical as well as currency diversification are the ideal candidates for LRS.
On the back of stable market environment and significant preparation work completed at a very short timeframe, KazAgro took advantage of a unique opportunity to raise medium-term funds in EUR for the currency diversification in KazAgro's debt portfolio and at a record low cost in the history of Kazakhstan.
With the trend unlikely to reverse in view of India's huge current account deficit, investing in the US will offer currency diversification Further, flight of capital from India, like the one seen in the last few months, makes equity markets here vulnerable.
A scheme like national bonds is covering the two risk areas highlighted above as it is dominated in USD or AED currency, which can be used as a currency diversification mechanism in addition to the sustainable earnings to cover the inflation ratios, in addition to the other advantages linked to the ultimate objective of saving and future protection such as the impeded life Takaful and chances of prizes winnings.
International contractors must look to currency diversification and an increased local presence in order to boost their chances for growth in lucrative areas like Saudi Arabia and Qatar, said Drake & Scull International (DSI) CEO Khaldoun Tabari.
We feel the acquisitions provide a solid platform for the company to meet its investment objectives, which include achieving stable, and growing income returns, above inflationary capital growth, and currency diversification for South African resident investors.
The market is also focused on the Group of Eight (G8) meeting on July 8-10 for any further debate on currency diversification.
Catalyst said it also provides the company with fiber and currency diversification.