Currencies that are too risky to buy are named

MOSCOW, 1 Feb – RIA Novosti. It is risky to buy not only recognized “marginals” like the North Korean won or the Venezuelan bolivar, but also, oddly enough, the Chinese yuan and the Hong Kong dollar. Alexander Kazansky, Associate Professor of the Department of Credit Theory and Financial Management, Faculty of Economics, St. Petersburg State University, told the Prime Agency about this.

Many people call the yuan a reliable and promising currency for investments, hoping for a quick recovery of the Chinese economy, but this is far from the case. “In the context of a high probability of ending the trade war with the United States and stimulating exports, the Chinese economy does not need an expensive yuan,” the expert explained.

The Hong Kong dollar has been overvalued for a long time, but the events of 2019, combined with the regressions that began in the second half of 2018, make it a dangerous investment currency. Thus, in recent months it has fluctuated significantly against the ruble.

Almost all African and Latin American currencies should not be considered for buying for investment. For example, the Argentine peso is steadily falling, which is not surprising: inflation in the country in 2020 amounted to 36.1% per annum, Kazansky concludes.

Author: wedocount

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