7 Ways Forex can make a Difference in Managing Your Projects. Published October 2016

 

 If you think that Brexit outcomes will have little effect on small and/or mid-cap projects…consider this.

Using Forex to forecast foreign currency behavior can keep managing costs of projects agile.  Coping with the unforeseen or getting to know currency market unknowable(s) in an age where the global paradigm rewards anticipators of currency shifts, is smart. But ignoring market sentiment’s influence on currency punishes those who rely on the traditional quantitative malaise. Brexit stands as an example of how social outcomes are factors that can shift project costs.

  1. Shadow bankinginfluences 85% of daily loan activity and is a major participant in traditional short-term commercial paper trade. Currency rates fluctuate at any moment and influence financial market behavior. Whether an upscale clothing and accessories chain or a business that provisions global services.  The price of renting money to meet daily operational cost and or fund a project may change in a heartbeat due to changes in global currencies and the interpretations of Forex trading. Phenomenon like Brexit will alter the behavior of shadow banking and its partnerships.
  2. No matter the size of our project funds, the troubles of large global banking institutions, like Germany’s Deutsche Bank, can influence the availability and cost of preserving global liquidity.
  • There is anticipation of a Brexit led relocation of banks with the accompanying brain drain from the UK.  It will have a ripple effect throughout local economies.
  • Contrary to current indicators of sustained economic growth, a recession will rear its head. A delimited pound will play itself out within the next year and will influence other global monies.
  1. Realignment of trade agreements, influences of tariffs and the costs of imports play an important role in cost of supply. Will your supplier pass that additional cost down to you?
  2. Even after finalization of the Article 50 agreement, the years of negotiating the messy divorce will and has diverted energy from the economy as it realigns trade agreements. Nervous businesses are already looking to reassert old trade agreements and create new ones inside and outside of the EU.
  3. While the Brexit event has lowered pound value, making exports cheaper, supply side economics will soon slow the pace of good news markets.

Next to the US dollar and Euro, the pound is widely used globally as legal tender for goods and services. Sovereign currencies pegged to the Euro and the sterling will experience the slowing markets first. Costs to ongoing projects will be at the whim of changes in expenditures to supply and will influence demand.

  1. In 2013, the EU had a population of 210 million making it the second most traded currency in the world. According to the IMF, the Eurozone has the second largest economy in the world. Because UK is a major trader within the single market, the Brexit will have implications to global monetary markets for generations. It would be pure folly to ignore Forex forecast of currency trends.
  2. By reciprocal agreements with larger global banks and shadow institutions, all US banks have some exposure to European financial systems. Hedging rules apply. The further out to completion of project the heavier the risks to rate changes. Forex can alert project managers of changes in the fundamentals effecting rate changes.

Think about this. A sovereign’s coin is like a living organ that is reactive to any social or political irritant. While tracking hourly journals of Forex markets will not satisfy all of your quantitative efforts, it is an excellent bell weather of how foreign currencies may influence your project scope.

The science of Forex forecasting  offers the advantages of anticipating trending costs over the life of a project. That keeps a Project Manager nimble. Consider this. Market sentiment will increasingly shift global monetary performance. As in the Brexit, which has forever changed how we anticipate human economic behavior and its influence on money.

 

The Disruptors, Inclusion (ists) Robo-advisors, Digital Economists and Crowd-funders…an Atlanta Reunion by Barbara Cerda for BCSolutions

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It was the usual January day in Georgia’s south…chilly with bright sun.  It was just the right kind of winter’s day native Chicagoans pray for.  This was a time when the 2016 HOPE Global Forums delivered again on its promise to inspire and conspire with young minority and women entrepreneurs. Finding a home in the Atlanta Marriott Marquis, it held the delightful feel of the familiar yet newly organized beyond its norm. The event managers and their digital minions brought a new online application to the gathering to advance registrations for forums and events.  Within all the glam and show was a wealth of the globe’s greatest thinkers and wealth builders that successfully strengthened global economies. The message was how the newest transnational disruptor is reshaping our world and intruding into every economic think tank session and forum.

From Davos to Atlanta the conundrum of how and why digital technology will serve the global underserved and poor communities is growing. Digital technology has become our new HOPE.

The most important take away message from this global summit was how the world’s most powerful instrument for change is impacting struggling communities waiting to be served.   Digital disruptors are reshaping Wall Street and has penetrated deep into the social constructs of global economies. It is breaking asunder how we grow information and wealth. This is a time of the biggest prosperity building engine in the history of man?  It is opening the doors to solving the needful enabling of the poor while creating new wealth builders. The need is ancient requiring nascent ideas.

The summit addressed this by bringing together both breakout forums blended with brilliant panelists.  The common theme, as in Davos, was by what means will we bring the benefits of digital technology to the poor and disenfranchised?

Tried and true possibilities of creating engaging financial products that can address the needs of the disenfranchised were discussed.  We learned that when addressing the needs of the masses the banking community’s most valuable commodity is trust.

Trust is needful in order to further the aims of bringing the feeling of inclusion back to stressed communities.  There must be a sense of faith in the economic systems and it must flow both ways.  The current mindset of financial houses is still mired in 1932 concepts.  Struggling communities are still being forced to go to the same wealth keepers who are still mired in antiquated banking regulations.  This hinders the digital culture from truly breaking free to serve the underserved.  Change in how traditional business is transacted is a must when taking into consideration its future which lies in a populace of increasing digital users.  The largest proportion of users in the world is in developing nations.  Of those countries Indonesia and Kenya have the greatest number of users.  Of those users the largest number by age group are under 25 years.

To gain their trust transparency must be the start.  Digital technologies like block chain draws us closer to that goal.

Within this digitalized mining system person to person dealings requires no third party. This is a peer to peer or within a community system of buyer seller transactions.  Block chain is making us understand that basic banking is being transformed. Glass–Steagall Act was created to guard the door.  Dodd-Frank Wall Street Reform and Consumer Protection Act is meant to regulate how we use those doors.  Finance, banking and the underlying flow of money is now being disrupted by way of digitalized money.

The digitalization of wealth has become the great disruptor of our age. It will serve to solidify the concepts of inclusion and self-realization.

The results will be an equitable world where dreams of a fruit filled life should become the ordinary for all…it should be written in every DNA.  This endeavor must become a global contract. From enabling communities to crowd fund banking to the privatization of businesses in m1 and 2 economies, digital technology has become the great inclusion (ists).

Digital economists are witnessing the changes in communicating and creating new ideas on how business and wealth is generating. Robo-advisors are teaching a new type of wealth management that is reaching deep into emerging markets where young adults are the average age of digital users.  Algorithmically-based automated investment is replacing traditional advisories.  Global regulators are giving a nod to what countries like China have already acknowledged as the future of block chain technology.

Even attendants at Davos this year understands that the great disruptor is enabling therefore changing the dynamics of growing information and wealth from the bottom up.

 

I Love What Cool Little Nuances of Crypto Currencies Can Offer Your Business

bitcoin imagesTake a moment to bask in the realization that our universe is reshaping its self-perception, about how we transact business. The word billion became an American idiom in 1844. D. Rockefeller was tagged the first billionaire shortly thereafter. This expression to determine a level of wealth will soon become obsolete. Wealth holders termed billionaire will translate into “trillionaire” in the near future. The fastest technological advantage that wealth holders will benefit from is crypto currencies like Bitcoin.

We receive payments for our business efforts with money that carries the full faith and credit of our government. We use various online exchanges to act as placeholders for our currencies. No longer waiting for the check in the mail, we have PayPal, Alipay or various banking services to act as payment agents. Step away from current means of business transaction and step into crypto-currency world. One of the current flavors of the day is Bitcoin.

Crypto currencies as Bitcoin is a “permissionless” frictionless payment platform that only needs to meet its necessary tech protocols to deliver instant gratification.

You may ask how something like Bitcoin can be useful to your small business. As a contractor, wealth manger, crowd funder, or small business you can’t afford the necessary time allotted to complete the necessary delays in receive your funds. Take into consideration there is riches in niches where governments are still maturing. Payouts using crypto currencies by pass any delays to payouts.

With crypto currencies similar to Bitcoin, payment is immediate. Because of the extremely nascent modality in digital payments, Bitcoin and like digital currencies will take global commerce to a new world. They will move through and bypass the difficulties in using sovereign coin like a warm knife through “budda”.

· There will be no lost moments absorbed in the regulatory rules relegated to cross sovereign exchanges.

· There would be no time or monetary limits of transfer.

· No cross border politics to hamper transfer from your clients accounts to yours.

Instant gratification and you appear to own a business that is nimble and able to successfully navigate the world.

Scalability defines the success of Bitcoin or any other virtual currency.

The eventual advent of scalability and regulations is needful to success; this way come “blight on the progression of entrepreneurism”. With scalability to the level of everyday payment actors like EBay and Amazon.com, come regulations, fees, and subscription to virtual banking that will lessen the reaping rewards. Those billionaires taking advantage of the current steamrollers like Bitcoin will become the new trillionaires.

Any business, small or large, will be able to put that technology onto place within its operations. You will be an exportable SME in your field or service and ahead of the game.

PayPal is sticking its toe into the crypto currency world; by offering gamers the ability to use Bitcoin as payment. This type of electronic transaction lessens PayPal’s fraud exposure to its 152 million global accounts. Our newest e-megastore Alibaba is unable to participate in the emergence of the earth shattering technology. They are operating in the “We don’t own it– so you can’t use it” world of Chinese governmental regulatory systems. China’s government chooses who may own economic drivers. Nevertheless, they have Alipay which is the world’s largest digital payment processor at over a half trillion, eclipsing PayPal.

The lure of virtual currencies like Bitcoin is the ability to exist outside of sovereign control. This enables capitalist economies to shape it and take profit while it is still a nascent technology.

Bitcoin is free trade.

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