Does Your Business Use Foreign Currencies?

Posted by on Nov 22, 2011 in Blog

A report recently prepared for Dun & Bradstreet’s international trading clients claims that recent currency fluctuations in Europe and between the US and China have the potential to seriously affect the global economy over the next 18 months.

It notes that the three major risks include policy uncertainty, currency uncertainty and disruption to supply chains. Businesses should avoid dealing with unstable currencies or those that are appreciating such as in Brazil, Indonesia, South Korea, Peru, Thailand and Turkey. The recent pegging of the swiff franc to the euro led to an overnight devaluation of the swiss franc by 6%. This type of loss could wipe out any profits for a business.