%0 Journal Article %A Rommel C. Gavieta %T Currency Exchange Risk and Financing Structure %B A Southeast Asia Developing Country Perspective %D 2001 %R 10.3905/jsf.2001.320235 %J The Journal of Structured Finance %P 49-52 %V 6 %N 4 %X Prior to the Asian financial crisis, Southeast Asian economies became vulnerable by financing a large part of their infrastructure development with short-term, foreign-currency-denominated debt. The rapid buildup of short-term foreign loans aggravated the volatility of Southeast Asian currencies and was a major cause of the crisis. Now there is heightened awareness of currency-exchange and financial structure risks. To further mitigate these risks, the author recommends sovereign exchange-rate guarantees that go beyond automatic commodity-price adjustment formulas, a multilateral currency differential insurance program for medium and long-term facilities, taxes on short-term investment flows, and government efforts to target long-term, fundamental-driven foreign direct investment. %U https://jsf.pm-research.com/content/iijstrfin/6/4/49.full.pdf