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 reve...
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| Format: | Brief |
| Language: | English |
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International Finance Corporation, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/424391486540674044/Masala-bond-program-nurturing-a-local-currency-bond-market http://hdl.handle.net/10986/30356 |
| Summary: | 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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