1、中文 4100 字， 2400 单词， 12500 英文字符 出处： Barrs I. The Management of Foreign Exchange Risk by Microfinance Institutions and Microfinance Investment FundsM/ Microfinance Investment Funds. Springer Berlin Heidelberg, 2006:115-146. 原文： The Management of Foreign Exchange Risk by Microfinance Institutions and M
2、icrofinance Investment Funds Isabelle Barres The term “MFI” is used broadly in this chapter to encompass institutions that provide small-scale financial services, such as loans, savings, insurance, remittances and other services (generally in amounts less than 250 % of GNP per capita). The term enco
3、mpasses a wide variety of organizations: NGOs, credit unions, non-bank financial intermediaries, rural banks, etc. Most microfinance investment funds (MFIFs) and other funders such as official development agencies finance their activities in US dollars (USD) or Euros (EUR), which may be called “ har
4、d currencies.” However, most microfinance institutions (MFIs) operate in nondollarised or non-Euro-based economies and lend local currency to their clients. Funding in one currency and lending in another, and the probability that the relative values of the two currencies will alter, creates foreign
5、exchange (FX) risk. Volatile currency exchange rate fluctuations in many countries where MFIs operate make FX risk a serious issue, but one that has often been accorded little urgency in microfinance. The accelerated development of microfinance through access to capital markets makes it imperative t
6、hat foreign exchange be managed in ways that are consistent with best practice in finance. Until this is widely achieved, access to capital markets for the benefit of microfinance will be retarded. Foreign exchange risk is one of many risks that MFIFs face. Interest rate risk is an additional risk t
7、hat is related to FX risk. As currency values change, interest expense or income will also change. And, spreads between interest rates on both sides of the balance sheet may change, that is, interest rates on money borrowed in one currency by a microfinance institution, for example, may diverge from
8、 interest rates on money loaned to micro entrepreneurs by the MFI. Each of these effects has implications for MFIF and MFI profitability. For purposes of economy, these second order exchange risks are not discussed further here in. This chapter explores the nature of FX risk in debt funding by focus
9、ing on which party is likely to bear the risk of exchange rate fluctuations in different situations at different points in a funding transaction. The importance of hedging is noted, and mechanisms are listed that MFIFs and MFIs use to address their respective FX risks. The relationships between curr
10、ency and risk described below apply to equity funds, while in the case of guarantee funds the situation is reversed. Equity investments, as capital, are always in the currency of the MFI. For the foreign equity investor, “ foreign exchange risk becomes one of several risks associated with an investm
11、ent rather than a central factor in making a loan.” Equity and guarantee funds, while not the focus of this chapter, are included in the Appendices with examples to identify when they face a currency risk and the hedging mechanisms they use. The most common foreign exchange risk possibilities are su
12、mmarized in Table. These combinations involve positions in Euros (EUR) and local currency, US dollars (USD) and local currency, and between EUR and USD, that comprise the currencies in which assets and liabilities are held by MFIs and MFIFs. Generalizing, we assume that before the MFI receives fundi
13、ng, it has no currency mismatch. Its “ operating currency,” the currency in which its assets are denominated, is the same as its “ funding” currency, which is the currency in which its liabilities are denominated. The example of change in value of the EUR against the USD is an interesting one to exa
14、mine. Over a 2-year period, the EUR gained close to 40% of its value against USD. This large change in the relative values of two “ hard” currencies was underestimated by many MFIs and MFIFs. The EUR was launched in 2002 at USD 1.17, and subsequently fell to less than USD 0.90. Recently, however, th
15、e EUR has appreciated considerably against the USD, and many European MFIFs operating in EUR and lending in USD in dollarizsed countries in Latin America have incurred significant losses from the transactions. The sharp appreciation of the EUR against the USD has created significant exchange losses
16、on the EUR loans of many MFIs, which in some cases will require restructuring. The ASN-Novib Fonds is an example. It is an MFIF in the Netherlands that lends in hard currency (both USD and EUR), with most of its portfolio concentrated in Latin America. It is seeking opportunities in Asia and Africa
17、if the foreign exchange risks can be hedged. In the past, the ASN-Novib Fonds made EUR loans to MFIs operating in dollarised economies, but the lack of hedging by its client MFIs and subsequent losses have forced ASN-Novib Fonds to discontinue unhedged EUR funding, which it considers too risky for t
18、he MFIs. On the other hand, MFIs borrowing in USD and on-lending in EUR have experienced currency gains their Euro-equivalent USD repayments of principal and interest have diminished considerably. Regardless of who bears the direct currency risk (i. e., direct losses from currency fluctuations), bot
19、h parties are at risk for indirect losses resulting from currency risk. For example, if an MFIF suffers losses and downscales operations or changes the allocation of countries in which it invests, client MFIs may lose access to a funder that has been helpful in the past. On the other hand, MFIFs fac
20、e increased credit risk (i. e., an indirect currency risk in this case), when MFIs have not hedged their currency risk and suffer subsequent losses that affect their profitability and long term viability. In this sense, some dimensions of currency risk are always shared between the MFIF and the MFI,
21、 regardless of which bears the direct risk, as portrayed in the examples above. Because of direct and indirect FX risks, MFIFs and MFIs are working together to develop hedging mechanisms in countries where the capital markets may offer few of the hedging options that are available in developed count
22、ries. To mitigate indirect currency risks, most MFIFs try to assess whether it is reasonable for their client MFIs to borrow in a certain currency. They examine their funding and operating currencies and monitor their overall foreign currency exposure on a regular basis as part of their due diligence process. MFIFs that have adopted these procedures include BIO,
