KCAL Insurance Agency
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As Risks Rise, Currency Insurance Could Gain Favor
If the political situation were to get chaotic，companies would consider a type of political-risk insurance that protects against governmental exchange-rate barriers. Banks and businesses often buy currency-inconvertibility coverage to guarantee that a project they are funding in an emerging country will continue to pay back its loans in the agreed-upon currency. The policies don't cover devaluation. Currency claims typically top out at $800 million per risk, Investors now are skittish about doing business in the Middle East.
Source:The Wall Street Journal