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 ?
This provides geographic and currency diversification which helps mitigate to an extent the risk stemming from the intense competition in the Mexican advertisement industry and a currency mismatch.
And because I believe a true investment should be viewed in a cash flow framework, I would call bitcoin a gamble, a speculation, or at best a currency diversification move.
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.-TradeArabia News Service
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. The latter feature is automatic and happens because the securities within the portfolio are denominated in local currencies.
Last, the remittances can be made in any freely convertible foreign currency equivalent to $125,000 in a financial year.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.
Having increased currency diversification of the debt burden, the world's largest transport company RZD also offered a debut euro-denominated bond.
However, Central Bank buying has been evident again in the month of February, and the list of Central Banks involved in any kind of gold related currency diversification is growing consistently.
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.