How The 9/11 Attacks Affected The Best Exchange Rate For US Dollars – Hitting Worldwide Businesses HardApril 10th, 2012
Getting the best exchange rate for us dollars has never been affected quite like it was in the weeks and months proceeding the 9/11 disaster. The immediate effect on foreign currency trading began with the US dollar falling sharply against the Euro, the Japanese yen and the British pound. It didn’t take long – the next day in fact, for European markets to begin to sharply decline. This hit stocks of companies in some sectors extremely hard, in particular travel and entertainment stocks fell, while communications, military and pharmaceutical stocks rose as their need increased during the aftermath and recovery from 9/11.
Loses to insurance companies following 9/11 overtook what was the US’s biggest disaster on record – Hurricane Andrew, by a staggering one and a half times. The largest loss was attributable to the interruption in business, which accounted for $11 billion a result of so many businesses quite literally disintegrating; this had a dramatic and direct effect on other businesses around the world. Other major loses include property that accounted for nearly $10 billion and compensation to employees at nearly $2 billion. Specific corporate companies suffering the largest loses as a result of the attacks; all with in excess of £2 billion were reinsurers Lloyd’s, Swiss Re, Berkshire Hathaway and Munich. Worsening the best exchange rate for us dollars situation further still. The disaster changed the face of the insurance industry forever – although there were reserves that covered the financial repercussions of the attacks, insurance companies are now wary to cover any future such disasters and there only a select few who do. As you would expect, with such limited supply and high demand – costs are astronomical.
One of the other biggest industry sufferers were airline and aviation companies, many of whom were forced to ground, in some cases (United and American Airlines) their entire airline. Internal flights were completely cancelled and services both transatlantic and domestic were affected for some time to come. This came at a time when the industry was already in turmoil. Share prices dropped so dramatically that many faced shut down and bankruptcy.
As you would expect, post 9/11, people were hardly in the mood to flood New York for a city break. Not only were people scared of travelling anywhere, let alone a city that had just experienced the worst ever terrorist attack in world history but they probably wouldn’t have been able to get there anyway because of the above world wide airline flight turmoil. They would probably not visit for some time to come as the effects of 9/11 had long lasting and far reaching consequences on getting the best exchange rate for us dollars. For your best exchange rates visit Best Exchange Rates UK.