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The Currency Exchange Fund n.v.

Equity : September 2007

BIO has invested USD 10 M in equity in the Currency Exchange Fund (TCX), a fund managing currency risk all over the world.

Amount

€ 7,091,000.00

Type of investment

Equity

Development impacts

  • Local economic growth

Beneficiary locations

Africa: Algeria, Benin, Burkina Faso, Burundi, Cameroon, Côte d'Ivoire, Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Guinea, Kenya, Madagascar, Malawi, Mali, Morocco, Mozambique, Niger, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Tunisia, Uganda, Zambia
Asia: Cambodia, Bangladesh, India, Indonesia, Myanmar, Nepal, Pakistan, Philippines, Sri Lanka, Vietnam
Latin America and Caribbean: Bolivia, Brazil, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru
Middle East: Palestinian Territories

Investment field

Financial Institutions

Activity

Currency hedging

Organisation

The Currency Exchange Fund n.v.

Domicile

Netherlands

TCX was founded in 2007 by a group of development finance institutions (DFIs), specialized Microfinance Investment Vehicles (MIVs) and donors to offer a solution to currency risk, a solution which – until then – did not exist. The current investors in TCX are 22 multilateral and bilateral development finance institutions (DFIs) and microfinance investment vehicles (MIVs), and the Dutch and German governments.

TCX focuses on providing currency solutions for its investors. These have accounted for over 90% of the volumes transacted by TCX to date. The remainder is primarily provided through commercial banks to make local currency finance available to their borrowing clients in developing countries.

TCX operates on the basis of the following principles:

  • additionality: provide solutions where markets are thin or inexistent;
  • risk-reflective pricing: price in accordance with prevailing market rates and methodologies;
  • non-speculation: only hedge actual underlying exposure to the real economy.

Development impacts

  • Local economic growth

    TCX cooperates as much as possible with local central banks to develop the education of the market players together with the use of best practices. This financial shift is expected to improve the viability of the productive sector, and more particularly the local SME.

View more of our investments in this region

Alterfin

Financial Institutions

Alterfin

 350,000.00

  25/03/2025

  Subsidy

Mutual Trust Bank

Financial Institutions

Mutual Trust Bank

 25,167.00

  Bangladesh

  27/02/2025

  Subsidy

Agroserv Industrie SA

Enterprises

Agroserv Industrie SA

 11,190.00

  Burkina Faso

  16/01/2025

  Subsidy

Gebana Burkina Faso

Enterprises

Gebana Burkina Faso

 24,244.00

  Burkina Faso

  16/01/2025

  Subsidy

African Rivers Fund IV

Investment Companies & Funds

African Rivers Fund IV

10,000,000.00

  Angola, Democratic Republic of Congo, Uganda, Zambia

  05/12/2024

  Equity

Navis Asia Credit Fund LP

Investment Companies & Funds

Navis Asia Credit Fund LP

15,000,000.00

  Indonesia, Philippines, Vietnam

  04/12/2024

  Equity

Navis Asia Credit Fund LP

Investment Companies & Funds

Navis Asia Credit Fund LP

5,000,000.00

  Indonesia, Philippines, Vietnam

  04/12/2024

  Equity

Banco Guayaquil

Financial Institutions

Banco Guayaquil

20,000,000.00

  Ecuador

  04/12/2024

  Debt

La Mesa de Finanzas Sostenibles

Financial Institutions

La Mesa de Finanzas Sostenibles

12,322.00

  Paraguay

  18/11/2024

  Subsidy