Climate Change & Forex Trading: Implications on Global Markets

The global climate is changing at an alarming rate, and the consequences are becoming more and more evident. This has naturally led to a greater interest in the effects of climate change on foreign exchange (forex) markets, as traders and investors look to protect their investments in light of the potential changes. In this article, we explore climate change’s impact on forex, delving into the ways in which it can affect global markets, and how this can be managed in a proactive manner. Climate change is the long-term alteration of the Earth’s climate due to the accumulation of greenhouse gases in the atmosphere. It is a universal environmental issue that is becoming much more prominent in recent years as the effects of climate change become more evident. The evidence for climate change is indisputable, as the Earth’s temperature has increased significantly since the Industrial Revolution in the 1800s, and several other indicators of climate change are visible. Climate change can have a serious effect on ecosystems and human life, leading to extreme weather events, droughts, floods, sea-level rise, and, at its worst, species extinction. As the effects of climate change become more pronounced, addressing climate change to mitigate its impacts is becoming increasingly important. Policies are being put in place to reduce our impact on the environment through methods such as using renewable energy sources, decreasing gas emissions, and placing a price on carbon emissions, but much more needs to be done in order to halt and reverse the effects of climate change.