Tools
As part of our mission to provide education and decision support to the microfinance industry on currency risk, MFX has developed several tools to help both MFI and MIV practitioners. The MFX Team is more than happy to provide training and support on any of our free education products.
For more information on scheduling a training or webinar at your institution please contact us.
Liabilities Planning Tool (LPT)
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In 2009, MFX, with USAID and financial software developer Simarch NV developed the LPT to help MFIs practice better Asset and Liability Management. The tool is design to help MFI CFO and finance managers analyze balance sheet risk and develop a strong funding plan. Managers can use the LPT to “stress test” their balance sheets and financial ratios against different economic scenarios, showing the impact of variables such as currency and interest rate volatility.
Useful for: quantifying an MFI’s fx risk exposure, analyzing financial the impact of a currency or macroeconomic crisis, creating sophisticated reports to present to investors and ALCOs, analyzing capital adequacy, evaluate funding options
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MFX Hedging Analysis Tool
MFX has developed another tool to help MIVs and MFIs quantify the FX risk involved in making a certain funding decision. The MFX Hedging Analysis Tool allows the user to input characteristics of a particular loan between an investor and an MFI and analyze the impact of currency volatility on the cash flows of that loan (under hedged and un-hedged scenarios).
Useful for: analyzing the impact of fx volatility on a loan to an MFI, understanding how a hedged loan looks from a cash flow perspective, explaining how a hedge works to a client/investor
MFX Hedging Analysis Tool (Hedging Calculator)
MFX Collateral Cost Calculator
Not having to post collateral is key advantage of hedging with MFX. But what exactly is it worth? This calculator allows you to directly compare swap terms with and without a collateral requirement figuring in your own cost of capital. Compare MFX swap pricing with other option that do require collateral and see which one gives the best total return.
Useful for: quantifying the opportunity cost of posting collateral in a hedge, compare cost of business in using MFX vs. commercial banks