> 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.
MFX also recently secured a new $200,000 grant to support our educational program. we will be building a new web-based interactive tool for MFI managers to help them quantify their currency risk and compare hard and local currency funding options. We will look for partners who can help disseminate the tool which will be available free on our website. Overall MFX has secured $600,000 in grants in the last year.
I am very excited to introduce our new team members, Marti Tirinnanzi and Jorge Santisteban, who both bring extensive careers in currency derivatives. Marti is our new Director of Operations. She has 25 years of banking experience as a lender, investment banker, consultant, and regulator for the US Federal Reserve. She is a recognized expert in derivatives accounting and can help our clients integrate hedging contracts into their financials.
Jorge is our new Director of Hedging Services responsible for initiating trades and working with clients on their hedging requirements. He will also take a lead role in designing MFX’s education and consultancy programs. Jorge comes from Citi and has 15 years experience trading currency derivatives and working with small businesses on their currency risk management needs.
2009 will be a big year for MFX as we begin to help the microfinance industry deal with currency risk in these volatile times. If you have specific questions about currency risk or how hedging with MFX works please visit our website at www.mfxsolutions.com or give any one of us a call at 202-527-9947 .
We look forward to working with you in the coming year and appreciate your continued support.
Executive Director, MFX Solutions