Dfc Currency Basket Scheme

Summary of Dfc Currency Basket Scheme

A mechanism of the World Bank and related agencies whereby loans to development finance companies (DFCs) would be made in a basket of currencies so as to mitigate the effects of exchange rate fluctuations. From 1980, the World Bank has made certain development loans in a mixture of U.S. dollars (usually one-half the basket) and either deutsche marks, Swiss francs, or Japanese yen.

(Main Author: William J. Miller)