Sign up for our News Bulletin!

Email Us


 
 

Resource Library / Finding Solutions to the Currency Risk Challenge for MFIs and Investors

Author(s):
Brian Cox
Sonia Mukhi


Brian Cox, President, MFX Solutions, USA Sonia Mukhi, Senior Analyst, MFX Solutions, USA Among its other lessons, the financial crisis revealed the extent to which MFIs are at risk when they borrow in hard currency to fund lending in local markets. The paper will highlight the latest data on currency risk in microfinance and describe best practices for managing currency risk by both international lenders and MFIs. It will describe new ways that investors are using currency derivatives and diversification strategies to shift their lending to local currency as well as new analytical tools that help MFIs quantify risk and plan their borrowing.



Click here to send this document to your Kindle or Kindle App.

Click here to download this document as a PDF


comments powered by Disqus