The African Development Bank Group has signed an agreement to make a $25 million equity investment in the Currency Exchange Fund (TCX), marking the Bank Group’s return as a shareholder in the global fund founded by development finance institutions to manage currency risk in emerging and frontier markets.
The signing took place in the offices of the Dutch Ministry of Foreign Affairs in the Hague.
The investment, to be deployed in two tranches, will reinforce TCX’s capital base, enhance its risk-bearing capacity, and expand its ability to offer hedging instruments in illiquid and underserved African currencies, for which conventional hedging solutions are unavailable or prohibitively costly.
The equity participation is expected to help crowd in additional development finance institutions and private investors, reduce currency mismatches for borrowers, and support sustainable growth across key sectors including infrastructure, energy, microfinance, small and medium-sized enterprises, and the public sector. The African Development Bank Group’s Board approved the investment on 17 September 2025.
