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

Abstract

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

Sicard, Catalina, Microfinance Institutions and Foreign Exchange Risk: The Experience of Accion's Latin American Affiliates. ACCION InSight Series, No. 16, January 2006, Available at SSRN: https://ssrn.com/abstract=906594

Catalina Sicard (Contact Author)

ACCION International ( email )

56 Roland Street
Suite 300
Boston, MA 02129

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