There are three basic microfinance products: loans, savings and insurance; Loans •  Mostly short term working capital  •  Larger loans for fixed assets  •  Housing  Savings •  Mostly compulsory savings used a loan guarantee as protection to the lender. Most microcredit operations and MFIs cannot mobilize deposits without a license from the Central Bank.
If the exchange rate is not allowed to move, then the *  Another arrangement that would involve greater commitment to exchange rate stability than just a fixed exchange rate is a currency board. With a currency board, there is a legislated commitment to convert local currency into the currency used as an anchor, say the US dollar, at a fixed exchange rate.