Risk Perception and Foreign Exchange Risk Management in Microfinance

Christopher Priberny, Gregor Dorfleitner


We study the perception of risks in the funding of microfinance institutions. A survey addressed to microfinance
institutions and their funding organizations reveals that several risk types, among them foreign exchange (FX)
risk, are not considered to be as important as reported in the relevant literature. We obtain further insights into
the FX risk management of microfinance actors and reveal that many FX risk mitigation strategies and hedging
tools are rarely used in practice.

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DOI: http://dx.doi.org/10.5539/jms.v3n2p68

Journal of Management and Sustainability   ISSN 1925-4725 (Print)   ISSN 1925-4733 (Online)


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