Implementing the Greater Mekong Subregion Core Agriculture Support Program (Phase 2)

Taking into account foreign exchange risk during TA design stage is important. Also, devising appropriate risk mitigating strategies or mechanism to address foreign exchange rate volatility is useful. This strategy could include the use of a currency conversion mechanism where donor funds are converted upon receipt into either one specific currency that is to be the primary use currency (e.g., USD), or a balanced mix of currencies (as used by the World Bank) are held so that the project funds are not so susceptible to the fluctuations of any one currency during project implementation.