Almost all African and Latin American currencies, as well as the Chinese yuan and the Hong Kong dollar, represent investment risk. This opinion was expressed in an interview with the Prime Agency by Alexander Kazansky, Associate Professor of the Department of Credit Theory and Financial Management, Faculty of Economics, St. Petersburg State University.
The expert noted that the rapid recovery of the Chinese economy does not make the yuan a promising currency for investing funds.
“With the likelihood of ending the trade war with the United States and encouraging exports, the Chinese economy does not need an expensive yuan,” the economist said.
He added that the Hong Kong dollar was overvalued for a long time, but the events of 2019, combined with the regressions that began in the second half of 2018, make it a dangerous currency to invest in. Thus, in recent months it has fluctuated significantly against the ruble.
According to Kazansky, almost all African and Latin American currencies should also not be considered for buying for investment. For example, the Argentine peso is steadily falling, inflation in the country in 2020 amounted to 36.1% per annum, Kazansky concludes.
At the end of January, the executive director of the Klopenko Group Dmitry Ivanov said that the most risky investment is an investment in cryptocurrency and any instruments that demonstrate sharp – up to a thousand percent in the short term – fluctuations.
The financier stressed that you can invest in currency, real estate, business, and securities. According to him, the main thing is not to forget about the “benefit-risk” ratio, when the higher the potential profit, the more likely it is to lose everything.