The currency crisis and protection

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People walk past a currency exchange notice board
With 12 of the world’s fastest growing companies, Argentina is the only South American country represented in the top 20 of IBT1000. At the turn of the millennium, Argentina all but collapsed. In 2001, the country suffered a severe bank run, and in December of that year, President Adolfo Rodriguez Saa declared the country defaulted on its foreign debt. The economy tanked in 2002 and has slowly increased since then. Much like the rest of the world, Argentina’s economy slowed in 2009, but has since rebounded. The country, however, remains threatened by high inflation. Argentina is best known for its food – particularly its beef, though a majority of its workers are in the country’s service sector. The country also produces, steel, petrochemicals and textiles.

Despite the march of humanity through history, many still hold very much the same values from milennia ago. These include parochial loyalty, meaning my home country is the best in the world. Unfortunately, the times are a-changing and this hometown mentality may serve to undermine possible opportunities elsewhere for growth and development.

The times that are about to come is expected to be a seriously turbulent time in human history. Freedoms are being curtailed at an alarming rate and this leads to crisis that will breed more crises in the future.

The common response to crisis situations is imposing order through following commands and instructions from a higher authoritarian figure. This leader would be characterized by a strong and dominant personality that would again curtail freedoms resulting in the return of another albeit more gripping and encompassing crisis.

Another dark cloud in the horizon would be the volatile currency market and devaluation of many currencies. While it cannot be avoided, there are ways to be insulated from these issues. This lies in the inherent difference of the countries,in terms of structures, values and economic policies. 

Whether you are running an international business or investing internationally, one of the most effective ways to hedge against currency volatility is through "currency options". One such firm that offers platform to trade currency options is IBTRADE.

Unlike forwards or purchasing other currencies, this instrument serves to expand options and opportunities, allowing for benefits to be reaped if the currency moves favorably and remain perfectly hedged if the currency moves against you.

These subjects can be overwhelming to consider, but their importance means that your research must not be delayed. That's why IBTRADE created a free video How options work in FX market.

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