3 Strategies For Currency Triage
Have you ever considered finding ways to triage your country's currency? This Founders' Member-only article goes over three strategies for currency triage to decrease currency risk.
Why would I want to triage a currency? Especially if my currency is the US dollar. The dollar is currently the world's reserve currency. There are several reasons why you would like to consider doing this. Some of the reasons include the following:
Diversifying out of the dollar and into other currencies.
To generate income in different currencies and asset classes.
Diversifying into other asset classes.
To diversify your political risk.
To prevent yourself from being stuck in a currency if or when the currency collapses. A nation’s currency relies upon the public’s confidence in it. It also depends upon the monetary policies directed by the Central Banks. Another contributor is how the government deals with its debt, if at all, and how it funds any programs it may have in a country. Trust is a funny thing. Here are some examples of currencies collapsing in human history. Fiat currencies do eventually fail.
These are three strategies for currency triage to decrease your political and monetary risks.