Currency risk remains one of the most persistent yet under-addressed barriers in development finance, particularly in frontier markets where volatility is highest and affordable hedging is least accessible. Without effective currency risk mitigation, many otherwise viable projects remain unbankable.

TCX addresses this challenge through blended finance facilities that use donor subsidies to reduce the cost of currency hedging for borrowers. Through five targeted pricing facilities, TCX makes hedging more affordable in high-need markets, helping unlock investment in environments where currency risk would otherwise constrain capital flows. This document provides an overview of these facilities and how they operate.

Blended finance for local currency solutions

The Currency Exchange Fund (TCX)