By hedging currency risk, TCX contributes to more sustainable development in emerging and frontier markets. Its aim is to develop local capital markets, while protecting its shareholders’ investments and their clients.
The Currency Exchange Fund (‘TCX’) was founded in 2007 by a group of development finance institutions (DFIs), specialized microfinance investment vehicles (MIVs) and donors to offer solutions to manage currency risk in developing and frontier markets.
These solutions consist of financial instruments – swaps & forward contracts – that enable TCX’s investors and clients to provide their borrowers with financing in their own currency, while shifting the currency risk to TCX. They are therefore protected from any currency volatility.
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