Shocks are seemingly inevitable. Change is a constant — and so goes the value of your paper assets, subject to the whims of markets and interest rate cycles.
Currency shocks bring sudden impacts when a currency’s values changes. It affects domestic financial markets and real economic activity. Sudden movement or pending legislation might affect a currency’s value significantly.
Here at Grit Daily we call it “currency crisis” season — usually when a government fumbles, confiscates, or does something that The Economist complains about.
It goes without saying that changes in a currency’s value affects not only world markets, but also the very people that hold these currencies.
Assurance against currency shock
Enter the ever-clever entrepreneur. It turns out that tech geeks are taking a stab at solving currency crises, too. Currency protection companies like Assure Hedge claim to prevent “the shock.” Naturally, derivatives trader Barry McCarthy started Assure Hedge in 2016.
Based in Dublin — which is turning into a refuge for financial firms fleeing Brexit these days — Assure is fully authorized by the Financial Conduct Authority to operate in the United Kingdom since March 2018.
Assure Hedge is fully regulated in Ireland and in 31 other countries across Europe. It looks to empower small to medium-sized businesses to grow and prosper internationally through having the same forex and hedging products available to them.
Small to medium-sized businesses can now compete with large businesses on a currency-hedging level level.
How do you hedge
Companies usually offer their customers downside protection and include the cost of a foreign exchange. Assure Hedge includes these services in its premium. It usually comes at a lower price than just a “forex” transfer with your bank.
Assure Hedge depends on multiple factors to set its prices. It considers time, value and volatility and comes in the form of a premium. Buyers pay premiums up front to secure future rates.
A nod from Global Shares
Assure Hedge appointed Global Shares’ CEO, Richard Hayes, as chairman in early 2019.
““I feel privileged to have joined such a talented Board of Directors” — Richard Hayes, CEO of Global Shares.
The newly appointed chairman has invested an additional €500,000 which boosts the company’s funding to €2.05 million. It still plans to raise more this 2019.
“Assure Hedge provides a unique low-cost protection against currency volatility which can be of benefit to practically every company worldwide,” Hayes claims. “The company deals outside its own currency jurisdiction either as an exporter, importer or service provider,” he added.
Assure Hedge says it will use Hayes’ additional investment to expand its UK office in its first quarter.
Will they be able to prevent cryptocurrency price shock as well?
