Currencies In Review: What We Saw In 2019 And What Might Be Ahead

Benefitting from a strong USD

A strong dollar means more buying power, both in forex markets as well as in foreign economies. As result imports are cheaper, which typically opens the way for larger profit margins for those in the import business. However, the reverse is true for exporters who may find less overseas demand when product becomes more expensive.

So while the US could see a drop in tourism, traveling abroad is always a solid choice when the dollar is performing well, as it helps offset some of the higher costs you’d expect while exploring Europe, while also giving you, even more, buying power in places like Mexico.

Another impact of a stronger dollar is that U.S companies operating overseas may suffer as foreign income decreases in value on their balance sheets. It’s good news for those who remit from the US though. The stronger the USD the more recipients will receive in local currency. However, not all money transfer services are created equally so remitters should make sure they are using a money transfer comparison guide to ensure they’re receiving the best rates and paying the lowest fees possible.

With the global economy becoming ever more complex, it is important to seize opportunities for stronger trading options when possible - whether these are financial or lifestyle decisions. There is no guarantee that the USD will remain, king, especially with so many compounding variables coming into play during 2020. Staying focused on the developing situation in China, watching what the Bank of England does with rate cuts or increases following Brexit and paying close attention to the US election are just a few ways to keep your head in the game, but no prediction is foolproof. As John Allen Paulos is quoted above, uncertainty is the only certainty there is.

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