Geopolitical events can influence financial markets and influence the behavior of countries in the world in making policies as an anticipatory impact on global shocks that may occur in that country.
Geopolitical events have occurred and recorded history which proves that geopolitical influences have a widespread impact in emerging countries. For example, the Covid pandemic that hit the world, caused government policies in many countries to follow international rules and had an impact on the economy.
The US and China trade war also affects other countries in the Pacific region and East Asia. The geopolitical risks posed are getting bigger, when China begins to strengthen its claims over territorial waters in the South China Sea.
Conflict in the Middle East, the Syrian Civil War (the Syrian conflict), and its devastating impact on the Turkish lira (TRY)
The influence of geopolitical risk in developed countries and emerging countries may be different, where emerging country currencies are riskier, therefore investors may look for haven currencies.
To learn more about geopolitical risks and understand which currencies are considered safe havens, you can find information on the FXOpen blog
Geopolitical events have occurred and recorded history which proves that geopolitical influences have a widespread impact in emerging countries. For example, the Covid pandemic that hit the world, caused government policies in many countries to follow international rules and had an impact on the economy.
The US and China trade war also affects other countries in the Pacific region and East Asia. The geopolitical risks posed are getting bigger, when China begins to strengthen its claims over territorial waters in the South China Sea.
Conflict in the Middle East, the Syrian Civil War (the Syrian conflict), and its devastating impact on the Turkish lira (TRY)
The influence of geopolitical risk in developed countries and emerging countries may be different, where emerging country currencies are riskier, therefore investors may look for haven currencies.
To learn more about geopolitical risks and understand which currencies are considered safe havens, you can find information on the FXOpen blog
