Perspective
31 October 2014
ECAs and local currency financing – what we have learnt so far
In:
Agri/Soft Commodities, Infrastructure, Manufacturing & equipment, Metals and Mining, Oil & gas, Power, Renewables, Telecoms and Communications, Transport, Waste and water
Region:
Middle East & Africa, Americas, Asia-Pacific, Europe
One major lesson learned from the financial crises in emerging markets since the 1980s is that large currency mismatches, both at a public and private sector level, strongly increase the vulnerability of a country to adverse shocks. The financing of local-currency activities by foreign currency denominated liabilities is therefore an inherent weakness
