[Mifos-users] Multiple currencies in Mifos

[Binny Gopinath]

All,

Is there anyone who has implemented Mifos where the MFI does the following:

a) The same loan product is disbursed in multiple currencies
b) A Loan may be disbursed in currency X and may be repaid in either currency X or currency Y

If anyone has done any of the above, I would like to know how the implementation was done to support multiple currencies.

Here is my understanding on how these requirements can be supported:

a) The loan product need to be defined multiple times. Once for each currency; the min/max/default loan amount values need to be converted externally and then specified when creating the loan products.
b) The scenario cannot be fully supported in Mifos. If a loan is disbursed in currency X, then all repayments also must be done in currency X. If the member is re-paying in currency Y, then the currency conversion should be manually applied externally and the converted value should be entered into Mifos. Any loss arising due to the conversion must be written off. But any amount collected in excess due to the conversion, cannot be accounted into Mifos easily.

Is this understanding correct?

Also, in BI, the reports have to be viewed product wise. If the report does not support a product-wise listing/totalling of amounts (for instance, the Branch Expected Cashflow report), then this report will show totals across currencies and this will be misleading. Such reports will need to be customized to include a filtering or grouping by loan products.

Let me know if you have any better suggestions than the above.

--
Thanks and Regards
Binny Gopinath Sreevas

[John Woodlock]

Binny,

I've nothing to add except my understanding is the same as yours for both mifos and mifos BI.   It might be that one additional currency is allowed in mifos (ie 2 currencies max) but I'm not really sure about that.

John

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[Binny Gopinath]

Thanks, John.
We can specify more than one currency under AccountingRules.AdditionalCurrencyCodes in applicationConfiguration.custom.properties, for example:

AccountingRules.AdditionalCurrencyCodes=THB,VND,CNY

I have tried this and the loan product page displays multiple currencies in the currency dropdown.

Thanks
Binny

[Keith Woodlock]

Binny,

My understanding of 'multiple currency' support in mifos is the following:

That an organisation can deal with 'multiple currencies' but that a
loan product is only associated with 'one currency' and hence all
transactions on loans of that type of loan product are only for the
currency associated with the loan product.

So as you say, scenario B is not supported in mifos but A is.

Mixing the currency used for disbursement and payments for loan will
cause trouble within the application with respect to adding
subtracting amounts of Money (as money doesn't support multi currency
at present) and also some queries used around loans such as ones for
collection sheet will not support this.

I dont' have a comprehension of what the effect would be on the BI
side of things.

Keith.

[Ryan Whitney]

Binny,

Dual currency support was added for Al Majmoua in Lebanon. It's a limited implementation though, because as stated by Keith, it only allows for all transactions to take place in the chosen currency for that loan product.

There were never any reports built to deal with the dual currency, at least, not that I know of, but I would think it might be something that could be added. I think the only question to think through is managing the exchange rate, especially if its something that fluctuates often. Seems there would have to be some kind of addition that imports the daily exchange rate from a reliable source, keeps track of it at a daily level, and reports as such.

r

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