Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects
Each year developing countries seek billions of dollars of investment in their infrastructure, and private investors, mostly in rich countries, seek places to invest trillions of dollars of new savings. Private foreign investment in the infrastruct...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2003/12/12120226/exchange-rate-risk-allocating-exchange-rate-risk-private-infrastructure-projects http://hdl.handle.net/10986/11286 |
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okr-10986-112862021-04-23T14:02:54Z Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects Gray, Philip Irwin, Timothy ADJUSTMENT MECHANISMS ADVERSE EFFECT BUDGET DEFICITS CAPITAL MARKETS COMMUNICATIONS DEVELOPMENT CONSUMER PRICE INDEX CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CREDITORS CURRENCY CRISES DEBT FINANCING DEBT SERVICE DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DOLLAR BONDS EMERGING MARKETS EQUITY INVESTORS EQUITY MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATE RISK EXCHANGE RATE RISKS EXCHANGE RATES EXPOSURE FINANCIAL STRUCTURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN EXCHANGE RISK FOREIGN INVESTORS HEDGES HOST COUNTRY IMPLICIT SUBSIDIES INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INNOVATIVE FINANCING INSURANCE COMPANIES INTEREST RATE INVESTMENT CORPORATION LIFE INSURANCE LIQUIDITY LIQUIDITY FACILITY LOAN LOCAL CAPITAL MARKETS LOCAL CURRENCY LOCAL CURRENCY FINANCING LOCAL DEBT LOCAL INFLATION LONG TERM MACROECONOMIC CRISES MACROECONOMIC POLICIES MATURITY MUTUAL FUNDS OPTIMAL ALLOCATION OUTPUTS PENSION PENSION FUNDS PENSION PLANS PRICE INCREASES PRIVATE FINANCE PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PUBLIC POLICY RATE OF DEPRECIATION RATES OF RETURN RENEGOTIATION REPAYMENT RETURN REVOLVING LOAN RISK SHARING SAVINGS RATES SHAREHOLDERS TARIFF INCREASES VOLATILITY WORLD PRICE Each year developing countries seek billions of dollars of investment in their infrastructure, and private investors, mostly in rich countries, seek places to invest trillions of dollars of new savings. Private foreign investment in the infrastructure of developing countries would seem to hold great promise. But foreign investors must cope with volatile developing country currencies. Many attempts to do so have created as many problems as they have solved. This note proposes that investors take on all financing-related exchange rate risk, even though this may mean higher tariffs for consumers as a premium for bearing that risk. 2012-08-13T14:39:29Z 2012-08-13T14:39:29Z 2003-12 http://documents.worldbank.org/curated/en/2003/12/12120226/exchange-rate-risk-allocating-exchange-rate-risk-private-infrastructure-projects http://hdl.handle.net/10986/11286 English Viewpoint: Public Policy for the Private Sector; Note No. 266 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADJUSTMENT MECHANISMS ADVERSE EFFECT BUDGET DEFICITS CAPITAL MARKETS COMMUNICATIONS DEVELOPMENT CONSUMER PRICE INDEX CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CREDITORS CURRENCY CRISES DEBT FINANCING DEBT SERVICE DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DOLLAR BONDS EMERGING MARKETS EQUITY INVESTORS EQUITY MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATE RISK EXCHANGE RATE RISKS EXCHANGE RATES EXPOSURE FINANCIAL STRUCTURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN EXCHANGE RISK FOREIGN INVESTORS HEDGES HOST COUNTRY IMPLICIT SUBSIDIES INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INNOVATIVE FINANCING INSURANCE COMPANIES INTEREST RATE INVESTMENT CORPORATION LIFE INSURANCE LIQUIDITY LIQUIDITY FACILITY LOAN LOCAL CAPITAL MARKETS LOCAL CURRENCY LOCAL CURRENCY FINANCING LOCAL DEBT LOCAL INFLATION LONG TERM MACROECONOMIC CRISES MACROECONOMIC POLICIES MATURITY MUTUAL FUNDS OPTIMAL ALLOCATION OUTPUTS PENSION PENSION FUNDS PENSION PLANS PRICE INCREASES PRIVATE FINANCE PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PUBLIC POLICY RATE OF DEPRECIATION RATES OF RETURN RENEGOTIATION REPAYMENT RETURN REVOLVING LOAN RISK SHARING SAVINGS RATES SHAREHOLDERS TARIFF INCREASES VOLATILITY WORLD PRICE |
| spellingShingle |
ADJUSTMENT MECHANISMS ADVERSE EFFECT BUDGET DEFICITS CAPITAL MARKETS COMMUNICATIONS DEVELOPMENT CONSUMER PRICE INDEX CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CREDITORS CURRENCY CRISES DEBT FINANCING DEBT SERVICE DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DOLLAR BONDS EMERGING MARKETS EQUITY INVESTORS EQUITY MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATE RISK EXCHANGE RATE RISKS EXCHANGE RATES EXPOSURE FINANCIAL STRUCTURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN EXCHANGE RISK FOREIGN INVESTORS HEDGES HOST COUNTRY IMPLICIT SUBSIDIES INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INNOVATIVE FINANCING INSURANCE COMPANIES INTEREST RATE INVESTMENT CORPORATION LIFE INSURANCE LIQUIDITY LIQUIDITY FACILITY LOAN LOCAL CAPITAL MARKETS LOCAL CURRENCY LOCAL CURRENCY FINANCING LOCAL DEBT LOCAL INFLATION LONG TERM MACROECONOMIC CRISES MACROECONOMIC POLICIES MATURITY MUTUAL FUNDS OPTIMAL ALLOCATION OUTPUTS PENSION PENSION FUNDS PENSION PLANS PRICE INCREASES PRIVATE FINANCE PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PUBLIC POLICY RATE OF DEPRECIATION RATES OF RETURN RENEGOTIATION REPAYMENT RETURN REVOLVING LOAN RISK SHARING SAVINGS RATES SHAREHOLDERS TARIFF INCREASES VOLATILITY WORLD PRICE Gray, Philip Irwin, Timothy Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| relation |
Viewpoint: Public Policy for the Private Sector; Note No. 266 |
| description |
Each year developing countries seek
billions of dollars of investment in their infrastructure,
and private investors, mostly in rich countries, seek places
to invest trillions of dollars of new savings. Private
foreign investment in the infrastructure of developing
countries would seem to hold great promise. But foreign
investors must cope with volatile developing country
currencies. Many attempts to do so have created as many
problems as they have solved. This note proposes that
investors take on all financing-related exchange rate risk,
even though this may mean higher tariffs for consumers as a
premium for bearing that risk. |
| format |
Publications & Research :: Viewpoint |
| author |
Gray, Philip Irwin, Timothy |
| author_facet |
Gray, Philip Irwin, Timothy |
| author_sort |
Gray, Philip |
| title |
Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| title_short |
Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| title_full |
Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| title_fullStr |
Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| title_full_unstemmed |
Exchange Rate Risk : Allocating Exchange Rate Risk in Private Infrastructure Projects |
| title_sort |
exchange rate risk : allocating exchange rate risk in private infrastructure projects |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2003/12/12120226/exchange-rate-risk-allocating-exchange-rate-risk-private-infrastructure-projects http://hdl.handle.net/10986/11286 |
| _version_ |
1764416187753562112 |