On World Savings Day The World Federation Of Exchanges Reminds Investors Of The Risks Of Inflation Eroding Their Savings

The World Federation of Exchanges “WFE”, the global industry group for exchanges and CCPs, supports the aims behind the World Savings and Retail Banking Institute’s World Savings Day. Savings play a key role in building financial resilience and enabling individuals to be prepared to face difficult times in the future. 

However, traditional savings alone are not enough to secure lasting financial well-being.  Inflation erodes the real value of cash savings, underscoring the need for more dynamic, growth-oriented approaches to wealth preservation. Capital markets offer that through different financial products including, equities, bonds and derivatives. 

These investment vehicles can, and do, outpace inflation and contribute to both personal and economic growth. In fact, it is well understood that stocks represent a powerful (if not the most powerful) way of investing for the longer term in the face of inflation. Moreover, whilst banking and private markets can also contribute to growth, exchange-led markets do so in a way that spreads risk and therefore benefits financial stability. 

Today, we would like to reiterate our call to action to support the growth of exchanges, and underline that impeding access to capital markets risks limiting growth (for both enterprises and investors) and limiting the ability of investors to make best long-term use of their assets. Read our white paper here. 

Nandini Sukumar, CEO of the WFE, said, “The aims of this campaign are laudable, and we encourage individuals to cultivate healthy financial habits and build resilience through saving. However, to truly finance the future, retail investors must be empowered with access to capital markets, with public policy recognising their role and advantages combatting the effects of inflation. This World Savings Day we encourage people not only to save, but to invest responsibly, inclusively, and with an eye towards the future.”