The forex is the first market in the world. It is also a strategic market as money has always been a symbol of power. For instance the pound was symbolizing the British supremacy in the 19th century and the dollar was the symbol of it after the Second World War. To this extend it is possible to say that the forex is also showing the amorality of capitalism. In fact it is a very “neutral” sector. It can be the instrument of an ethical investment or not depending on the choices made.
The forex is very linked to geopolitics. For instance the rise of China is linked to the rise of yuan. The new rivalry between the dollar and the yuan show it. To this extend China is using new tehnologies to expand the influence of its money. The fact Asia’s power is more and more important is showing that the dollar will have less influence in the future. Actually the forex market is leaning more and more towards Asia and the exchange evolutions will be more and more linked to this region of the world.
Doing ethical forex is possible to the extend the money are representatives of the regime of the countries they are fabricated. For instance the euro may be a very good choice as the European Union is a pole of democracy in the world. Money is a way to support the way these countries are behaving towards values. Of course this investment has to be a long term one and go beyond the unexpected events of the markets.
Investing in this sector can be very interesting for several reasons. First money is a strategic asset in the economy as wrote Keynes. Second it is linked to geopolitics and requires a good understanding of international relations. Third, for those who want to do ethical or impact investing, it can be the way to support an effective way countries whose values deserve to be defended.
This sector, to this extend, can be more and more complex due to globalization and a great complexification of the world which is not only a western dominated one. Huntington said, in his “clash of civilizations”, that there will be a return of the historical norm where there were blocks linked to cultural heritage. The very last centuries were for him mainly western conflicts, but this phase is over. The major importance of Asia, the rise of Africa which can be a great power later in this century or the next one, show that the western civilization is not the first one in the world. The consequences on the forex market can be important and give an even more complex aspect to this market. The rivalry between the dollar and the yuan may be the first one before others.
The observer 