Any business importing or exporting their wares can be affected by currency swings. Part of managing these involves knowing upfront which events may drive exchange rate fluctuations.
Adverse currency impacts can have a major dent on a firm’s profitability, as OrotonGroup noted in 2017 prior to its collapse.
Analytics firm GlobalData compiled a list of the major geopolitical and economic events taking place throughout the year, with a number of countries due to face major elections.
Russians will go to the polls on 18 March for presidential elections, while Italians are also due for a general election in March.
The latter, given the commotion and uncertainty created by previous election cliffhangers in the heavily indebted European country, has the potential to cause turbulence for the euro on currency markets.
Other general elections that have potential significance to Australian businesses this year are those in Malaysia in August and Thailand in November, as well as in Mexico on 1 July.
Brazil is also headed to the polls in October, while Egypt is due for an election this year and Sweden will hold presidential elections on 9 September.
However, the year’s biggest event will undoubtedly be BREXIT (the term used to describe the UK’s departure from the European Union).
The deadline for the agreement to be negotiated looms large in October, with significant ramifications for both the British pound and the euro, as well as a raft of implications resulting from Australia’s own trade negotiations with a newly isolated UK.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
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