It might not be the first thing that comes to mind when thinking about protecting your business from future economic risks, but changes to monetary policy and monetary risks can put a huge damper on your bottom line.
That’s because when you import goods or services, you are exposed to the risk of fluctuating exchange rates.
If you export goods to a foreign country and you receive payment in that country’s currency, you are exposed to the risk that the value of that currency will decrease at any time. This can result in a loss of your company’s value, as the goods you sell will be worth less than you expected in your home currency.
Similarly, a country’s monetary policy will impact your ability to borrow and your cost of capital. You have to watch out for your exposure to the risk that interest rates could increase, making it more expensive to repay your debt.
Infortal can help you better understand how monetary policy changes can impact your business, including how likely it is for a central government to take action.
With the proper warnings, you can stay on top of any upcoming monetary policy changes occuring in the regions and countries you do business in. Infortal uses political and economic intelligence, as well as boots on the ground knowledge, to provide accurate analysis of any possible changes to monetary policies that could impact your business.
That way you can use a variety of strategies, such as hedging and diversifying, to proactively address and manage your monetary risk and ensure your long term success.