How do foreign investors who invest in Nigeria and Ghana deal with currency devaluation and inflation risks?

Answer 1

Investors often include foreign or international bonds in their portfolios for a few primary reasons – to take advantage of higher interest rates or yields and to diversify their holdings. However, the higher return expected from investing in foreign bonds is accompanied by increased risk arising from adverse currency fluctuations.

Answer 2

Investors often include foreign or international bonds in their portfolios for a few primary reasons – to take advantage of higher interest rates or yields and to diversify their holdings. However, the higher return expected from investing in foreign bonds is accompanied by increased risk arising from adverse currency fluctuations.