Nearly all African and Latin American currencies, the Chinese yuan and the Hong Kong dollar are risky for investment, said Alexander Kazansky, Associate Professor of the Department of Credit Theory and Financial Management of the Faculty of Economics, St. Petersburg State University, Report informs, referring to Russian media.
He said that the rapid recovery of the Chinese economy does not make the yuan a promising currency for investment.
Kazansky noted that in conditions of a high probability of ending the trade war between China and the US, as well as stimulating exports, the Chinese economy does not need an expensive yuan.
He said that the Hong Kong dollar is also a dangerous currency for investments. The financier explained that this currency had been overvalued for quite a long time, but the events of 2019, combined with regressions that began in the second half of 2018, make it dangerous. It has fluctuated significantly against the ruble in recent months, he added.
Moreover, Kazansky indicated that almost all African and Latin American currencies should not be considered for buying for investment purposes. He cited the example of the Argentine peso, which is falling steadily. In 2020, inflation in Argentina was 36.1 percent per annum, the expert added.