| Microfinance Currency Risk Solutions was conceived and funded by the microfinance industry - networks, lenders, investors, raters and foundations. Our mission is to give microfinance lenders modern tools to analyze and manage their currency risk, enabling them to provide more funding, more safely, to poor entrepreneurs in the developing world. MFX has a specific focus on high risk markets such as Sub-Saharan Africa where mitigating currency risk can generate new lending to traditionally underserved populations. | |  |
We Offer- Cross currency swaps and forward contracts tailored to the needs of microfinance.
- Assistance with documentation and processing to simplify and reduce the costs of hedging.
- Free decision-support tools and advice on currency risk decision-making.
- Help for microfinance lenders to compare funding options.
MFX StoryStarting in 2005, a group of microfinance organizations -- lenders, investors, raters, networks, and foundations -- came together to seek an answer to the growing problem of currency risk in the microfinance industry. This collaboration resembled a microfinance village bank – pooling resources for a common good. Led by ACCION International, Calvert Foundation, MicroRate, Global Partnerships and Calmeadow Foundation, along with many of the most prominent organizations in microfinance, this group initiated and funded an industry project to examine all aspects of the problem and develop a comprehensive solution.
The Center for Financial Inclusion at Accion InternationalInclusive Finance Forum
Guest post: Microfinance Currency Risk SolutionsMonday, February 02, 2009 11:27:00 AM
> Posted by Brian Cox
This is a guest post by Brian Cox, executive director of Microfinance Currency Risk Solutions. MFX Solutions is the result of a collaborative effort to address the growing problem of currency risk in the microfinance industry. To learn more, visit their website at www.mfxsolutions.com.Dear friends and stakeholders of MFX Solutions:
Happy New Year from all of us at MFX (something I can now say without having to invoke the royal We). I wanted give you a short update on our progress and introduce our new management team.
We remain on track to launch operations in early spring. The last piece of the puzzle for MFX to become fully operational is securing our OPIC guarantee. When that is finalized, we will make our investment in TCX and open our doors for business as the first currency hedging facility designed exclusively for microfinance. Our initial capital will allow us to hedge roughly $40M in microfinance loans through swaps and forwards in most emerging and developing market currencies. ...
