Microfinance Institutions and Foreign Exchange Risk: The Experience of Accion's Latin American Affiliates
ACCION InSight Series, No. 16, January 2006
12 Pages Posted: 6 Jun 2006
This InSight explores the following questions: How great a threat does exposure to foreign exchange rate risk represent to microfinance institutions (MFIs)? What motivates MFIs to acquire liabilities in a foreign currency? Do MFIs understand the exchange rate risks involved, and if so, how do they manage them? ACCION International presents the results of a survey of its Latin America affiliates on these questions.
Keywords: foreign exchange risk, FX risk, MFI, microfinance, microcredit, ACCION, Latin America
JEL Classification: F31, N86
Suggested Citation: Suggested Citation