InSight #16: Microfinance Institutions and Foreign Exchange Risk: The Experience of ACCION's Latin American Affiliates
By Catalina Sicard - Published: 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 presents the results of a survey of its Latin America affiliates on these questions.
