Permjit Singh
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    • 1984 remembered - 01 Jun 25 London
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6/6/2025 0 Comments

Care International and currency risk

I sent the email below to a charity, as I was curious about how they managed their currency risk.  Horner did not reply, but I was told "we will be back in touch as soon as possible.", however, more than two weeks later and still waiting for an answer.

..................................
Hello Ms Horner

I came across your organisation (Lendwithcare, LWC) through your advert on a tube on London Underground.

I've been on LWC's website and read about how its lending process works at a high level and I have read its Terms of Use, but I'm still curious about its currency activities:

  1. how it manages loan-related currency trading and risk management,
  2. how much it gained and how much lenders lost through currency movements, 
  3. whether it undertakes currency hedging,
  4. who its partner is for executing currency conversions, and 
  5. who it uses use to make currency transfers to its MFIs.
LWC's lending process sounds quite involved and quite complex as a result of multiple currencies involved and multiple intermediaries sitting between between Lenders and Entrepreneurs.

(Another layer of complexity relates to the fees and interest charged and distributed between the Entrepreneuer, the MFI, and LWC.  That layer is not of interest to me on this occasion).

My background is corporate treasury management and I've written articles on various aspects of corporate finance.  I'm based in London.

It might be interesting to write an article on how you deal with currencies and associated risks.

Not sure who would deal with my enquiry at LWC or whether it's one for Care Intnl UK. I had a look at Intnl's accounts and saw your organisation described in Note 20 as a Peer to Peer lending relationship.  Nothing, however, on currency management or income from favourable currency movements, which is odd given it is such a central part of your lending process.  I can't see any financial accounts for LWC.

P Singh




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    Israel's genocide of Palestinians: at least 80 killed in Israeli air strike on a shool that was used as a shelter by women and children.

    Today, I came across a video clip of an interview of a Save the Children aid worker (Casey Harrity) in Gaza. She was asked how she is feeling about what she is seeing: "This is the worst I've seen.  I've worked in Syria, I've worked in Iraq and other places...We're seeing a new level of depravity in this conflict and we cannot let this be the new normal.  We can't let attacks against children be the new normal...we're asking for people to step up...to demand a definitive ceasefire...member states should not be sending weapons...and we're asking to open the borders so that we can get more supplies in..."

    Write something about yourself. No need to be fancy, just an overview.

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