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Onome Amuge
The African Development Bank Group (AfDB) has approved a $25 million equity investment in The Currency Exchange Fund (TCX), a specialist institution that offers local currency hedging in emerging and frontier markets, in a move designed to curb foreign-exchange exposure that has long undermined Africa’s debt sustainability.
The investment, announced recently, signals the AfDB’s determination to strengthen the continent’s financial resilience at a time when governments and businesses are still dealing with the fallout of external shocks, including volatile commodity prices, tightening global monetary conditions and exchange rate instability.
TCX, founded in 2007 and backed by a consortium of…