MFX Solutions helps microfinance institutions (MFIs) analyze, manage, and mitigate the currency risk that arises from borrowing in U.S. dollars or euros and lending in local currency. Through these activities, MFX Solutions allows the microfinance industry to grow in poorer markets.
MFIs can face currency risk when borrowing from foreign investors in U.S. dollars or euros, and then lending the funds to individuals in local currency in their country of operation. This currency disparity can cause a loss of earnings, lower returns on equity, and loss of creditworthiness.
MFX Solutions helps MFIs manage such risks and increases their access to funds in local currencies so that they may penetrate poorer markets and grow in a safer, more sustainable way.