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Global Currency Tensions on the Increase

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Procurement, sourcing and B2B fulfillment teams need to be aware of building currency turbulence involving multiple global regions, especially Latin America and Japan. The government of Venezuela has de-valued its currency by 30 percent and certain manufacturers are already impacted by the effects.  The Wall Street Journal reported earlier this week that Venezuela’s exchange rate was expected to drop from 4.30 bolivars to the dollar to 6.30 bolivars per dollar. Consumer products manufacturer Colgate Palmolive indicated earlier this week that it will take a one-time charge of $120 million related to the Venezuelan currency devaluation. The WSJ pointed to Clorox and Procter and Gamble has potentially being impacted because of their sales exposures in that country. The Financial Times reports this week that the Group of Seven nations took the unusual step of issuing a public statement to address rising concerns over “currency wars”.  Particular emphasis was made in the […]