Patricia Mwangi

Foreign Exchange Rate Risk in Microfinance

Many borrowing microfinance institutions (MFIs) are not adequately managing their exposure to foreign exchange rate risk. There are at least three components of foreign exchange rate risk: (1) devaluation or depreciation risk, (2) convertibility risk, and (3) transfer risk.

Disclosure Guidelines for Financial Reporting by MFIs

This Consensus Guidelines represents the consensus of CGAP's member donors on microfinance institution (MFI) financial reporting requirements. The guidelines do not prescribe accounting policies or any particular format for financial reporting. Rather, they indicate the minimum information that should be included in MFI financial reports, regardless of how that information is presented.