Foreign exchange (FX) risk remains a significant barrier to scaling local currency lending in frontier and emerging markets. 

This white paper, developed by Global Partnerships in collaboration with Dalberg and MFX, explores how managing FX risk at the portfolio level, rather than loan by loan, could improve capital efficiency, reduce financing costs, and expand access to appropriately structured capital. Drawing on analysis of more than 400 transactions across 18+ currencies over a ten-year period, the research offers a new perspective on how financial system design can better support enterprises serving low-income communities. 

Read the complete white paper below.