Well developed markets like the South African Rand or Mexican Peso may offer 30-year maturities for large amounts. Market conditions vary over time and across maturities. ![]() Which currencies and maturities are available? Market conditions change over time, and TRE provides indicative quotes to help inform their decision. More importantly, the interest rate in local currency reflects the terms the World Bank can obtain when hedging the currency risk. The World Bank charges a 0.06 percent per annum transaction fee. What is the cost of converting to local currency? The interest rate in local currency will typically be fixed. The amount clients owe in local currency upon conversion is the amount they will have to repay. The World Bank can convert disbursed amounts to local currency. How does the World Bank help clients manage currency risks? ![]() By converting to local currency, clients address that risk. ![]() Why do clients need to manage their currency risk?īorrowing in foreign currencies exposes clients to the risk that debt and debt service payments (as measured in local currency) increase when their local currency depreciates.
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