Diversification : A Tool to Help You From the Global Event’s Impact On Your Finance
Political events have a profound impact on exchange rates and international trade, as governments play a pivotal role in shaping economic policies. Changes in political leadership, government policies, or geopolitical tensions can trigger fluctuations in currency values. This will affect the competitiveness of exports and imports. For example, when a country undergoes political instability or experiences a regime change, investors may lose confidence and pull their investments out of that economy, causing its currency to depreciate.