Their vision is effective aid, where every dollar makes an impact. Their mission is to get more aid all the way to the recipient through better transfers and by informing the aid community about currency risks.
At AidHedge their vision is an aid that is effective, where every dollar makes an impact. They think that they can make a real contribution by helping to improve how the currency management in the aid sector.
Their goal is to make innovative services that provide aid organisations and donors with the knowledge and understanding they need. As a start they are working on two tools, that they will launch during the autumn 2016.
Understand you currency risk: They will help aid organisations understand currency risk, and how to handle it. Improved risk management will reduce funding volatility, enabling organisations and donors to plan for a more effective aid.
Lower the price for currency: They will make sure that aid organisations understand how to purchase currency. Lower transaction costs means more money to aid.
A majority of aid organisations work in fragile or transitional contexts, full of risks to the completion of the projects. One such risk is that funds are lost due to currency rate fluctuations. Small currencies like the national currencies are especially vulnerable, but even larger currencies can fluctuate a lot.
The last few years, for example, the Swedish SEK has lost a lot of value in relation to the USD. This has had direct impact on projects funded by Swedish aid. One of many examples is a Swedish funded mine clearing project in Afghanistan. The project, with a 4 million USD budget, lost 800K USD just in 2015 due to a drop in the SEK value.