Masala Bond Program–Nurturing a Local Currency Bond Market
The financing needs of emerging markets are enormous. Sectors such as infrastructure, small business, and housing are vital to a nation’s sustainable development and require substantial financing support. Since these sectors primarily generate revenues in local currency, foreign currency financing may incur a mismatch that can expose emerging market borrowers to exchange rate risk in times of high volatility. Local currency bond issuance is a significant potential option that avoids such risks and can support private sector investment in productive sectors of emerging markets.
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Format: | Brief biblioteca |
Language: | English |
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International Finance Corporation, Washington, DC
2017-01
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Subjects: | CURRENCY BOND MARKET, EMERGING MARKET ECONOMIES, EXCHANGE RATE RISK, BOND MARKET, RISK MITIGATION, CREDIT RISK, LIQUIDITY RISK, |
Online Access: | http://documents.worldbank.org/curated/en/424391486540674044/Masala-bond-program-nurturing-a-local-currency-bond-market https://hdl.handle.net/10986/30356 |
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