- Analytics
- News and Tools
- Market News
- Get out of currencies with high-interest rates to arm against a crisis of the financial system – Commerzbank
Get out of currencies with high-interest rates to arm against a crisis of the financial system – Commerzbank
How risky are EM currencies? Economists at Commerzbank analyze which currencies are more vulnerable to a coming crisis of the financial system.
For currencies with high-interest rates, central banks have more room to cut rates
“It would be presumptuous to explain, for example, the negative performance of LatAm currencies with inherently higher risk. I rather think one has to state a very simple correlation: For currencies with high-interest rates, central banks have more room to cut rates. Thus, if you want to arm yourself against a coming crisis of the financial system, you have to get out of such currencies.”
“Among the biggest losers, tragically, are the currencies whose central banks have so far pursued a particularly sound monetary policy and have been particularly aggressive in raising their key interest rates in response to the global inflation shock.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
