This paper discusses how migrant remittances (which are of large importance to many developing countries) can be used not only as a source of earnings, but also as a tool to generate low-cost finance (at terms better than those imposed by the country's sovereign rating). A concrete structured...

This paper describes the experiences of developing country enterprises, farmers and governments with commodity price risk management and various forms of structured finance. It explores the constraints that these entities face in using modern financial markets, including counterparty and...

This paper explores the growing involvement of new types of non- commodity-sector-related players in commodity futures markets. This includes a discussion on the role of managed funds, the impact of the use of commodity warrants, and the direct involvement of banks. The impact of this new form...

Financial instruments such as documentary credit, structured finance and derivatives have proved their value in commodity trade. However, the sophistication of these instruments can also make them a tool for financial fraud. This report discusses how, using commodity market instruments such as...

This paper starts with an overview of the current literature on the cost of price risk exposure to developing country farmers. It then discusses market-based price risk management instruments (such as futures and options) that can be used by farmers, as well as various mechanisms through which...

This paper explores the potential for futures contracts in tropical (hardwood) plywood, one of the few major internationally traded commodities for which there is no yet a futures market. Commodity characteristics and market structures and practices that have an impact on the feasibility of a...

The report assesses whether a commodity exchange can help Bhutanese farmers, and if so, whether conditions in Bhutan allow for the creation of a successful exchange. It concludes that an exchange will reduce farmers' price risk exposure and raise their realized prices, in particular for...