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What effect does the war have on the currency?
At the beginning of the war, the currency depreciated.

1. When the country faces the threat of war, the country will start the national machine, start the national manufacturing and financial industries, and prepare for the war. Then it will inevitably have an impact on the normal economy of the country. If a country's economy is depressed or in crisis, it will start the "printing machine" first because it can't raise funds, which will lead to inflation, thus increasing the depreciation of its currency and lowering its international credit rating, leading to economic crisis or financial crisis. Of course, it will also lead to social disorder and incalculable losses to normal economic life. Of course, even taking special measures will restrict the normal development of social productive forces.

2. The outbreak of war in a country depends on whether the warring parties are isolated local conflicts or large-scale alliance conflicts. If they are local and not engaged in business, they will only have a great impact on the international reputation and credibility of the belligerent countries, international trade and energy import and export will also be affected, and border control and personnel exchanges will be restricted. No matter whether it is big or small, it will cause a serious blow to the economy and finance of the countries concerned, so money, as a carrier or manifestation of the economy, will be negatively affected, so depreciation is inevitable.

Will gold appreciate in the war?

Under normal circumstances, war will make gold rise.

Major international political and war events will affect the price of gold. The government pays for the war or in order to maintain domestic economic stability, a large number of investors turn to gold to invest, which will expand the demand for gold and stimulate the price of gold to rise.

World War II, Vietnam War, 1976 coup in Thailand, and 1986 Iran-contra incident all caused the price of gold to rise to varying degrees. When the world political situation and economy are unstable, especially when there is a war or an economic crisis, all kinds of common investment tools such as stocks, funds and real estate will be seriously impacted, and gold embodies a good hedging property.