Microfinance returns expected to remain stable despite US elections

Published on November 12, 2024 at 6:46 p.m. / Modified on November 13, 2024 at 07:49.

The impact of the American elections is of some concern to BlueOrchard, the microfinance specialist in emerging countries. The various electoral promises of the future tenant of the White House could have repercussions in the regions where the company, founded in 2001 in Geneva, operates.

The possible increase in American customs duties on products coming from abroad could lead to a further acceleration of inflation, pushing the American Federal Reserve to review its strategy of reducing interest rates. “If this scenario were to come true, American rates would remain at a high level for longer, and this would put pressure in particular on the central banks of emerging countries. The latter could in turn delay the reduction of their rates to defend the national currency,” remarked Michael Wehrle, head of investment solutions at BlueOrchard during a round table organized on Tuesday in Zurich. Furthermore, the strengthening of the dollar compared to the currencies of other countries also constitutes a handicap for the development of business: importing certain items could subsequently prove more expensive, the greenback being the currency most used in world trade .

Want to read all of our articles?

For CHF 29.- per month, enjoy unlimited access to our articles, without obligation!

I subscribe

Already have an account?
Log in