Now you can borrow money just as cheap even from your friend, Chuck, and you don't have to hedge any foreign currency risk.
Another issue for U.S.-based investors is foreign-currency risk.
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Here you can get your taste of foreign equities without a lot of currency risk.
Mr. Hanke would be most helpful in suggesting how African policymakers can protect the currency-risk interests of foreign investors and leave investment-making decisions to those who understand the terrain and know that plenty of investment opportunities await to be exploited.
Chinese firms, said Ms Wu, should hedge their currency risk using derivatives, as foreign companies do.
Toyota also felt the hit of foreign currency translation, as the yen strengthened on heightened risk aversion as investors sought protection given instability in Europe and a declining U.S. dollar.
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Among the tax options on the table, which also include a global financial transaction fee (called a "Tobin tax" after Nobel-winning economist James Tobin, who proposed a tax on foreign-currency transactions in the 1970s) and a Bonus Tax, a risk-based fee is the most efficient solution.
And how long will Asian countries continue to spend money building up foreign-exchange reserves that earn next to nothing and carry the risk of currency losses, rather than use the money to invest in their own region, which seems set to grow an awful lot in coming years.
And a more serious drawback, seen in Thailand, is that by appearing to eliminate currency risk a fixed rate encourages firms and banks to borrow heavily in foreign currency at cheaper interest rates than on domestic funds.
As for the dollar, the reason to worry would be if a falling currency prompted foreign investors to demand higher yields on American Treasury bonds to compensate them for the risk.
Analysts said though foreign inflows into equity markets might further strengthen the local currency against the greenback, some lingering political risk could weigh on the value of the ringgit as Mr. Anwar, the opposition leader, has disputed the election results.
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