Sharp Daily
No Result
View All Result
Wednesday, October 8, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

How USD Money Market Funds can benefit you in a monetary easing cycle

Joshua Otieno by Joshua Otieno
October 9, 2024
in Investments
Reading Time: 2 mins read
FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration

FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration

With global central banks loosening monetary policy, investors are faced with the challenge of preserving capital while finding low-risk investment opportunities. In this environment, USD money market funds present a particularly compelling option for those looking to manage risk while maintaining liquidity. These funds offer a blend of security and stability, making them a favored choice for conservative investors.

During periods of monetary easing, central banks lower interest rates to encourage borrowing and economic growth. However, this often leads to reduced yields on traditional savings products. For investors prioritizing capital preservation, USD money market funds provide an attractive alternative. They invest in short-term, high-quality instruments such as U.S. Treasury bills and commercial paper, which are generally considered low-risk. These characteristics make money market funds a safe haven, particularly during economic uncertainty.

Liquidity is another key advantage of USD money market funds. Investors can easily access their capital with minimal restrictions, allowing for flexibility in responding to changing market conditions. This level of liquidity is especially valuable during periods of economic unpredictability when preserving cash flow and maintaining flexibility becomes a priority for many investors.

In addition, the U.S. dollar remains the world’s dominant reserve currency, which gives USD-denominated assets a level of global stability. Even in a low-interest-rate environment, USD money market funds often provide better returns compared to their counterparts in other currencies. The strength of the U.S. economy and financial system adds another layer of security, making these funds attractive to international investors as well.

RELATEDPOSTS

Importance of diversifying your portfolio in money market fund USD

March 20, 2025

Investing in USD money market funds: A smart choice for stability and liquidity

March 6, 2025

During times of monetary easing like we are in, USD money market funds offer a balanced approach to conservative investing. While yields may be compressed, the focus on safety, liquidity, and the strength of the U.S. dollar makes them an ideal choice for risk-averse investors. By holding such funds, one can effectively navigate the complexities of a loosening monetary environment without compromising on capital protection.

Previous Post

Kenya’s export growth eases current account pressure, but debt worries persist

Next Post

AFA mandates new registration requirements for sugar packers

Joshua Otieno

Joshua Otieno

Related Posts

Investments

Equities, Bonds, or Fixed Deposits?

October 7, 2025
Investments

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025
Analysis

Kenya Pipeline Company IPO

October 3, 2025
Investments

Post-September review: What CMMF did and what’s next

September 26, 2025
Investments

CMMF at a glance: Competitive returns & easy access for every investor

September 19, 2025
Analysis

Alternative investments: Opportunities and risks

September 12, 2025

LATEST STORIES

The economic and environmental gains of Kenya’s LPG shift

October 8, 2025

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024