Published on December 9th, 2025
Please read more in our press release.
Amsterdam, 9 December 2025. Today, KfW and The Currency Exchange Fund (TCX) signed a milestone Technical Assistance grant agreement, under the EU-funded EFSD+ framework. The Technical Assistance facility totals up to EUR 22.9 million, comprising up to EUR 7.1 million dedicated to capacity building and up to EUR 15.8 million to top up the “EU Market Creation Facility – Pricing Component Plus”, further supporting access to affordable currency risk hedging solutions. The capacity-building grant will enable TCX to launch the Local Currency Academy – an initiative dedicated to improving the capacity of domestic borrowers to better understand, manage, and mitigate foreign exchange (FX) risk.
The Local Currency Academy will operate as a partner-based facility supporting public and private sector borrowers across at least 20 low-income and lower-middle-income countries. It will work in close collaboration with international and domestic development institutions, financial experts, and private sector partners to deliver practical solutions tailored to local market conditions.
The Academy will provide public and private sector borrowers with practical frameworks, analytical tools, and hands-on technical support to improve understanding, access and ability to apply both onshore and offshore risk mitigation instruments. These efforts address two mutually reinforcing challenges: (1) limited depth and liquidity in domestic local currency markets; and (2) continued dependence on cross-border hard currency funding flows.
Ruurd Brouwer, CEO, TCX, said, “TCX is proud to partner with the European Commission and KfW to launch the Local Currency Academy. This initiative contributes to durable local capacity, more resilient capital markets, and the conditions needed for sustainable and responsible long-term financing.”
Patrick Schreiber, Principal Portfolio Manager, KfW, said, “The capacity to manage currency risk remains a critical barrier to sustainable financing in many emerging and frontier markets. This gap increases vulnerability to shocks and constrains long-term investment. Through this EU-funded EFSD+ grant, KfW is pleased to support TCX in addressing this challenge.”
By improving technical knowledge, strengthening enabling environments, and expanding access to appropriate financial instruments, the Local Currency Academy aims to empower both public and private sector borrowers to proactively manage FX exposure and enhance debt sustainability.