The Currency Exchange Fund (TCX) adds Pakistan Rupee (PKR) to its local currency solutions portfolio.
Earlier this week, The Currency Exchange Fund (TCX) hedged an equity investment in the financial sector in Pakistan. TCX has now added Pakistani Rupee (PKR) to its local currency solutions portfolio.
TCX is based out of Amsterdam, The Netherlands. The investor base for TCX is predominantly development finance institutions and micro-finance investment vehicles that are active in the long-term debt markets of emerging and frontier markets. The fund applies state of the art valuation techniques to track its exposures on a day-to-day basis. By cooperating with its Development Finance Shareholders, TCX creates local currency markets and opens emerging markets to foreign investors.
Read: DFID Backs SMEs in Pakistan via Karandaaz Pakistan and Bank Alfalah
With this recent development, TCX protects the investor from currency risk. Currently, they are in dialogue with the State Bank of Pakistan to allow offshore hedging of foreign loans as well. This would allow Pakistan to open up for increased foreign direct investment in USD, without any risks to those investing fall into any currency risk problems. TCX offers currency risk protection in all DAC currencies for 2 years and longer.
By hedging the PKR, TCX protects the investor from currency risk. TCX is in constructive discussion with the State Bank of Pakistan to allow the off shore hedging of foreign loans. This would open Pakistan for increased foreign direct investment in USD, without the investees having to run currency risk.
TCX offers currency risk protection in all DAC currencies for 2 years and longer. By cooperating with its Development Finance Shareholders TCX creates local currency markets and opens emerging markets to foreign investors.
