Stronger currencies internationally

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To such actions, the currency of this country has already lost approximately 20% of its value compared to the previous year , and in the next 5 years this result is 80%. Great Britain In 1992, an event known as Black Wednesday took place, as a result of which Great Britain withdrew from the European Exchange Rate Mechanism which aims to stabilize the currencies of member countries . For this reason, it became the target of a speculative attack by George Soros, thanks to which the country lost 3.4 billion pounds. In turn, last year saw the lowest level of the British pound in years.

This is the result of the deepening economic crisis that followed the outbreak of the coronavirus pandemic, high inflation, and restrictions on phone number list energy supplies inhibition of the supply chain with Russia, which provoked the war with Ukraine . The United Kingdom is not alone in this situation, as virtually every currency has lost value, but it is the pound that has felt these changes the most. How to protect yourself against depreciation of the national currency The decline in the value of money is a harmful phenomenon for the economy and, therefore, also for entrepreneurs.



So what can you do to minimize your risk of loss Start investing in ; Use tools to hedge currency risk, e.g. by concluding forward contracts, futures contracts or currency swaps you can learn more about them in this article ; Carefully monitor the financial situation especially liquidity of your company - use ratio analysis ; If your contractors agree, include the so-called indexation clause. This is a type of provision that does not provide a specific amount of payment for the service, but only the method of calculating it when it is fulfilled.