Inside DFID's £31M investment in the Currency Exchange Fund

British pound sterling banknotes. Photo by: REUTERS / Leonhard Foeger

LONDON — In his first major speech as head of the U.K. Department for International Development, Rory Stewart announced £31 million ($40 million) for a facility that supports development finance by de-risking lending to low-income countries in local currencies.

The Currency Exchange Fund, or TCX, was founded in 2007 by the Dutch government to mitigate foreign exchange risks — a major cause of financial instability for lenders and borrowers in low-income countries.

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About the author

  • Edwards sopie

    Sophie Edwards

    Sophie Edwards is a Reporter for Devex based in London covering global development news including global education, water and sanitation, innovative financing, the environment along with other topics. She has previously worked for NGOs, the World Bank and spent a number of years as a journalist for a regional newspaper in the U.K. She has an MA from the Institute of Development Studies and a BA from Cambridge University.