JV Fernand M.
International Economic Analyst

(GBSN)- In a world that will soon be subject to economic measures that could introduce major changes to the way we do business globally, people who are informed about the potential impacts of new global economic and financial trends will be best prepared to achieve success in these new global conditions.

Here are four advantages that international banking can offer you to help you begin preparing for the new reality that could come.

• Effective protection against inflation and devaluation

If tariffs cause high inflation in certain countries, clients of international banks can protect their capital by instantly exchanging weak currencies for stronger ones.

It is advisable to maintain accounts in different currencies such as dollars, euros, or Swiss francs, etc. This could mitigate the risks of local currency depreciation; these services can be provided by international banks.

• Safe haven for investors and companies

Companies that depend on international trade may need banking services in jurisdictions with fewer restrictions than banks in local jurisdictions. International banks can facilitate operations in markets less affected by the trade war.

       • Opportunities in financial assets

A trade war could generate volatility in the stock and foreign exchange markets, creating opportunities for sophisticated investors in hedge funds, structured products, and stablecoin certificates of deposit. Assets such as cryptocurrencies could become more attractive, and international banks can offer this service.

• Tax and regulatory optimization

If tariffs increase import/export costs, many companies will seek to restructure their operations in countries with favorable trade agreements. This allows an international bank to help its clients manage their capital more tax-efficiently because they can receive and send money to different jurisdictions worldwide.

If the situation becomes complicated, there could be an increase in demand for international banking services to protect assets, optimize costs, and access less affected markets. We recommend exploring this financial alternative as soon as possible.