Many investors would see investment aboard as an increasing currency risk. In reality, it is one of the best methods of currency diversification.
In the case that an investor hold all of their fund only in Thai Baht currency, it means s/he are fully take Thai Baht fluctuation risk compared to foreign currency.
As long as there are activities on global scale such as importing goods and materials from aboard, we are paying out foreign currencies in terms of Thai Baht automatically.
As you have seen, in the period of Thai Baht depreciation, you will definitely pay more for oil that is priced in Thai Baht/Liter. This is actually because oil prices are quoted in USD. What Thai Baht depreciation means is you have to use more amounts of Thai Baht to get the same exact amount of foreign goods that are quoted in foreign currency.
Therefore, all investors or non-investors will take currency risk in the daily basis automatically.
Investment abroad (holding other currencies) is one of the methods that would actually help investors diversify the currency risk.
Many investors would see investment aboard as an increasing currency risk. In reality, it is one of the best methods of currency diversification.In the case that an investor hold all of their fund only in Thai Baht currency, it means s/he are fully take Thai Baht fluctuation risk compared to foreign currency.As long as there are activities on global scale such as importing goods and materials from aboard, we are paying out foreign currencies in terms of Thai Baht automatically.As you have seen, in the period of Thai Baht depreciation, you will definitely pay more for oil that is priced in Thai Baht/Liter. This is actually because oil prices are quoted in USD. What Thai Baht depreciation means is you have to use more amounts of Thai Baht to get the same exact amount of foreign goods that are quoted in foreign currency.Therefore, all investors or non-investors will take currency risk in the daily basis automatically.Investment abroad (holding other currencies) is one of the methods that would actually help investors diversify the currency risk.
การแปล กรุณารอสักครู่..