THE EFFECTS OF FOREIGN EXCHANGE EXPOSURE ON THE FINANCIAL PERFORMANCE OF MFIS IN BUEA MUNICIPALITY
Abstract
The primary objective of this study is to investigate the effect of foreign exchange exposure on the financial performance of Microfinance Institutions (MFIs) in Buea Municipality, Cameroon. Specifically, the research examines the impacts of transaction exposure, translation exposure, economic exposure, and funding exposure on the financial performance of Microfinance Institutions (MFIs).
Using descriptive and inferential statistics, comprising 192 employees of 21 Microfinance Institutions (MFIs) in Buea, the findings reveal that transaction exposure significantly negatively affects financial performance, indicating that fluctuations in exchange rates can severely impair profitability. Translation exposure also demonstrated a detrimental effect, albeit to a lesser extent, suggesting that currency conversion processes create additional financial strain.
Economic exposure was found to have a substantial positive correlation with financial performance, highlighting the importance of strategic management in mitigating risks associated with broader economic factors. Funding exposure, while positively correlated, did not achieve conventional significance, indicating the need for deeper investigation.
Furthermore, the study emphasizes the necessity for MFIs to adopt effective risk management practices, including hedging strategies and diversification of funding sources, to enhance financial stability. The results underscore the critical role of understanding foreign exchange dynamics in improving the resilience and sustainability of MFIs in the region.
| Project Details | |
| Department | Banking & Finance |
| Project ID | BFN0109 |
| Price | Cameroonian: 5000 Frs |
| International: $15 | |
| No of pages | 85 |
| Methodology | Descriptive |
| Reference | yes |
| Format | MS word & PDF |
| Chapters | 1-5 |
| Extra Content | table of content, questionnaire |
This is a premium project material, to get the complete research project make payment of 5,000FRS (for Cameroonian base clients) and $15 for international base clients. See details on payment page
NB: It’s advisable to contact us before making any form of payment
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THE EFFECTS OF FOREIGN EXCHANGE EXPOSURE ON THE FINANCIAL PERFORMANCE OF MFIS IN BUEA MUNICIPALITY
| Project Details | |
| Department | Banking & Finance |
| Project ID | BFN0109 |
| Price | Cameroonian: 5000 Frs |
| International: $15 | |
| No of pages | 85 |
| Methodology | Descriptive |
| Reference | yes |
| Format | MS word & PDF |
| Chapters | 1-5 |
| Extra Content | table of content, questionnaire |
Abstract
The primary objective of this study is to investigate the effect of foreign exchange exposure on the financial performance of Microfinance Institutions (MFIs) in Buea Municipality, Cameroon. Specifically, the research examines the impacts of transaction exposure, translation exposure, economic exposure, and funding exposure on the financial performance of Microfinance Institutions (MFIs).
Using descriptive and inferential statistics, comprising 192 employees of 21 Microfinance Institutions (MFIs) in Buea, the findings reveal that transaction exposure significantly negatively affects financial performance, indicating that fluctuations in exchange rates can severely impair profitability. Translation exposure also demonstrated a detrimental effect, albeit to a lesser extent, suggesting that currency conversion processes create additional financial strain.
Economic exposure was found to have a substantial positive correlation with financial performance, highlighting the importance of strategic management in mitigating risks associated with broader economic factors. Funding exposure, while positively correlated, did not achieve conventional significance, indicating the need for deeper investigation.
Furthermore, the study emphasizes the necessity for MFIs to adopt effective risk management practices, including hedging strategies and diversification of funding sources, to enhance financial stability. The results underscore the critical role of understanding foreign exchange dynamics in improving the resilience and sustainability of MFIs in the region.
This is a premium project material, to get the complete research project make payment of 5,000FRS (for Cameroonian base clients) and $15 for international base clients. See details on payment page
NB: It’s advisable to contact us before making any form of payment
Our Fair use policy
Using our service is LEGAL and IS NOT prohibited by any university/college policies. For more details click here
We’ve been providing support to students, helping them make the most out of their academics, since 2014. The custom academic work that we provide is a powerful tool that will facilitate and boost your coursework, grades and examination results. Professionalism is at the core of our dealings with clients
Leave your tiresome assignments to our PROFESSIONAL WRITERS that will bring you quality papers before the DEADLINE for reasonable prices.
.
For more project materials and info!
Contact us here
OR
Click on the WhatsApp Button at the bottom left
Email: info@project-house.net
