Currency Exchange Rates

How the Geopolitical Landscape Affects Currency Exchange Rates

The geopolitical landscape refers to how countries interact politically and economically—think wars, trade agreements, sanctions, elections, or diplomatic disputes. These events affect the exchange rate, which indicates how much one currency (e.g., the British pound, GBP) is worth compared to another (e.g., the US dollar, USD). For beginners, envision currencies as a popularity contest: when […]

Trump’s tariff policies

How Do Trump’s Tariffs Affect Your Currency Exchange?

The recent headlines scream only one streak: “Trump’s reciprocal tariff rates!” While this may seem simple, it has sent the US dollar soaring to multi-decade highs and lows. Trade policies have always played a crucial role in shaping global economies, but few have had as much immediate and widespread impact as Donald Trump’s tariff strategies. […]

Bank of Canada Interest Rate

Will the Bank of Canada Cut Rates in March 2025? A Nation Holds Its Breath

In a few hours, the Bank of Canada will announce its policy decision, whether it’s trimming its key policy rate or not!  Well, Canada currently stands at a crossroads. With 200 basis points already slashed, borrowing costs have eased, yet the economy teeters between resilience and vulnerability. Will the BoC opt for another cut on […]

International Currency Transfers

GBP/JPY Wobbles Amid BoJ Rate Hike Prospect

GBP/JPY declined to near 189.61, as hawkish Bank of Japan (BoJ) expectations and Japan’s fourth-quarter (Q4) Gross Domestic Product (GDP) release undermined the yen. The Japanese economy experienced a growth of 0.6% quarter-on-quarter in Q4 2024, missing the preliminary estimate of 0.7%, as revealed by the final reading published by Japan’s Cabinet Office on Tuesday. […]

EUR/GBP Struggles Following Mixed German Data

EUR/GBP hovers near 0.8390 as Germany’s fiscal reforms signal major debt restructuring, supporting the euro. German leaders, including the likely new Chancellor Friedrich Merz, have agreed to establish a €500 billion infrastructure fund alongside debt reforms. However, market expectations of accelerated inflationary pressures due to German debt restructuring could reinforce the European Central Bank’s (ECB) […]

Role of the IMF in Stabilising Currencies

The Role of the IMF in Stabilising Currencies: A Key Player in Global Economic Stability

Currency stability is a cornerstone of economic growth, financial confidence, and international trade. However, currency fluctuations, economic crises, and external shocks can create instability, leading to financial turmoil in individual countries and broader global markets. The International Monetary Fund (IMF) stabilises currencies, supports distressed economies, and ensures global economic stability. This article explores the IMF’s […]

Arbitrage

Arbitrage Explained: How to Profit from Price Differences

Suppose you’ve ever spotted the same product being sold at different prices in two different stores and thought about buying it cheaper in one place and selling it for a profit in another. In that case, you already understand the basic idea of arbitrage. Arbitrage is a trading strategy that takes advantage of price differences […]

Safe-Haven Currencies

Safe-Haven Currencies Explained: Why Investors Turn to USD, CHF, and JPY During Crises

Financial markets are inherently volatile, and during economic uncertainty, investors often seek stability by moving their capital into safe-haven assets. Safe-haven currencies tend to retain or even increase in value during periods of crisis, offering a secure store of value when other investments become risky. The US Dollar (USD), Swiss Franc (CHF), and Japanese Yen […]

US Dollar Dominates Global Trade

Why the US Dollar Dominates Global Trade: An Economic Perspective

Over the years, the US Dollar has really been the cornerstone of global economics, whether in trade or investments. When it comes to oil transactions, government debt, or cross-border business payments, the dollar truly stands out as the world’s most relied-upon and trusted currency. So, what fuels the USD’s impressive role in international trade? Why […]