The Currency Exchange Fund

What The Currency Exchange Fund does

The Currency Exchange Fund N.V. (TCX), founded in 2007 and headquartered in Amsterdam, is an Alternative Investment Fund that provides currency hedging instruments — primarily cross-currency swaps and cross-currency forwards — to enable local currency lending in emerging and frontier markets where no functioning hedging market exists. The fund swaps hard currency funding (USD or EUR) into local currency obligations for borrowers, thereby eliminating currency mismatch risk for international lenders, development finance institutions (DFIs), microfinance institutions, local banks, and infrastructure projects. TCX prices instruments using a proprietary macro-fundamental methodology (FPAS) that extrapolates scarce local market benchmarks to illiquid frontier currencies, and has been profitable since inception with cumulative notional hedged of approximately USD 20 billion across 54+ currencies.

TCX's capital base is anchored by a unique shareholder group comprising over fifteen DFIs and microfinance investment vehicles (FMO, KfW, EBRD, EIB, IFC, IDB, AFDB, BIO, OFID, JBIC, Proparco, Cofides, Oikocredit, Blue Orchard, Triple Jump, etc.), plus European Commission guarantees exceeding EUR 320 million. The fund is rated Aa3 with stable outlook by Moody's (upgraded in 2024, affirmed June 2026), reflecting capital strength, currency diversification, and shareholder support. Distribution is exclusively institutional and relationship-led: TCX transacts directly with DFI shareholders, their clients (local banks, microfinance institutions), and end-borrowers holding hard currency funding. Product extensions include inflation-linked cross-currency swaps, price freezing products, synthetic loan plus non-deliverable swap structures, the TCX Frontier Index, and a co-developed MIGA convertibility risk insurance product. Recent strategic partnerships (ICD, TDB Group, Finance in Common) and a 2025 USD 25 million African Development Bank investment signal active geographic and product expansion across Africa, the Middle East, and into Islamic finance.

Name

The Currency Exchange Fund

Legal name

The Currency Exchange Fund N.V.

Website

https://tcxfund.com

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

101–250 employees

Short description

The Currency Exchange Fund (TCX) is an Amsterdam-based hedging fund founded in 2007 that provides cross-currency swaps and forwards to development finance institutions, microfinance investors, local banks, and borrowers to eliminate exchange rate risk in emerging and frontier market currencies where no alternative hedging market exists.

Ownership category

akta.pro rank

Product category

Currency Risk Management and Hedging Services

NAICS

Securities and Commodity Contracts Intermediation and Brokerage (5231), Other Financial Vehicles (52599)

SIC

Security Brokers, Dealers & Flotation Companies (6211), Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

FX Swaps & Forwards Trading Venues (FSAFADAG)

akta.pro secondary industries

FX Conversion, Pricing & Hedging Infrastructure (Treasury/Rate Engines) (FSAGAKAG), Embedded FX & Cross-Border Treasury (FSAGALAG)

Keywords

• Currency hedging services
• Cross-currency swaps
• Frontier market derivatives
• Local currency financing
• Exchange rate risk management

Headquarters

HQ city

Amsterdam

HQ country

Netherlands

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Others

Revenue model

1. Currency Hedging Services: TCX prices its hedging products based on existing benchmarks available in local markets, interpreting and extrapolating those benchmarks to arrive at pricing that adequately reflects the risks TCX absorbs. The fund has realized a modest profit since inception, with TCX pricing model allowing the Fund to make several percentage points profit, suggesting adequate risk pricing.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels7 records

Core offering

TCX provides currency hedging instruments, principally cross-currency swaps and cross-currency forwards, to development finance institutions, microfinance investment vehicles, local banks, and direct borrowers in emerging and frontier markets. The fund swaps hard currency funding into local currency loans, protecting counterparties from exchange rate volatility in currencies where no functioning hedging market exists. TCX operates only where there is no sufficiently liquid alternative market for its products, acting as a market maker in over 54 illiquid currencies globally.

Product overview

TCX Fund is a currency hedging fund that operates as a single unified product focused on mitigating exchange rate risk in emerging and frontier markets. The core offering consists of cross-currency swaps and cross-currency forwards, which are provided to development finance institutions, banks, and direct borrowers. Supporting products include the TCX Frontier Index (a bond currency index), local currency bond facilitation, synthetic loan structures with NDS, price freezing products, inflation-linked swaps, and Excel-based pricing tools. The fund also operates specialized programs including the EU Market Creation Facility and infrastructure financing solutions, all working together to enable local currency lending where no alternative market exists.

Differentiator

Problem solved

Functional benefit

Products and services

• Cross-Currency Swaps TCX commits to compensate counterparties for losses suffered as a result of the depreciation of the counterparty's domestic currency against the US dollar or euro under this swap arrangement. The swap effectively exchanges hard currency funding into local currency loans for borrowers in emerging and frontier markets.
• Cross-Currency Forwards Forward contracts to hedge future exchange rate movements in illiquid frontier currencies. Simple risk-mitigation tools provided primarily to shareholders and their clients for currency hedging.
• TCX Frontier Index The first-ever frontier bond currency index tracking performance of frontier local currency debt. Provides a benchmark for frontier market currency bond performance.
• Inflation-Linked Cross-Currency Swaps Hedging instruments that link payments to inflation indices in local currencies. Cross-currency swaps with inflation linkage for borrowers seeking protection against both currency and inflation risk in frontier markets.
• Price Freezing Product A hedging product that allows counterparties to lock in pricing for currency conversions in volatile frontier market currencies.
• Synthetic Loan & NDS Synthetic financing structures combined with Non-Deliverable Swaps (NDS) for currency risk management in markets with limited hedging availability.
• EU Market Creation Facility A facility supporting local currency financing in EU partner countries through pricing enhancements for hedging operations in low and low-middle income countries.
• Infrastructure Financing Solutions Currency risk management solutions specifically designed for infrastructure and renewable energy projects in emerging and frontier markets, where revenue streams are in local currency but traditional financing is in hard currency.

Quantifiable outcome

• TCX has hedged approximately USD 20 billion worth of loans provided to borrowers in emerging markets since inception in 2007.
• +3 more outcomes

Named customers5 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Five partnerships are on record, tiered strategic and minor.

• ICD (Islamic Corporation for the Development of the Private Sector)strategicStrategic or Co-development Partner · 19 June 2026ICD partnered with TCX to mitigate currency risk and support SME financing in Azerbaijan. The partnership focuses on developing an Islamic finance-oriented non-deliverable hedging solution for frontier markets.
• TDB Group (Trade and Development Bank Group)strategicStrategic or Co-development Partner · 26 November 2025TDB Group and TCX signed an ISDA Master Agreement and Credit Support Annex to enhance financial resilience through local currency solutions in Africa. The partnership enables collaboration on innovative hedging instruments to mitigate currency risks and foster sustainable financing in local currencies across TDB Member States.
• Finance in Common (FiCS)strategicStrategic or Co-development Partner · 2 July 2025FiCS and TCX cooperate to reduce currency risk in Public Development Banks' balance sheets. A blending facility created with European Fund for Sustainable Development support will improve affordability of hedging operations in low-income countries, with up to USD 500mn for concessional hedging and potential to support USD 2bn in local currency foreign direct investment.
• FrontclearminorStrategic or Co-development PartnerDevelopment fund based in Amsterdam that incentivizes money market development in emerging markets by issuing investment grade guarantees for collateralized funding deals. TCX and Frontclear co-present at events and collaborate on market development initiatives.
• MIGA (Multilateral Investment Guarantee Agency)strategicStrategic or Co-development PartnerTCX and MIGA developed a Joint Product: Enhanced Local Currency Solution with Convertibility Risk Insurance, combining TCX's hedging expertise with MIGA's political risk insurance.

Scale indicators7 records

Recent moves9 records

Expansion highlights6 records

Broad incumbents

• Standard Chartered: Global bank with one of the most extensive frontier and emerging markets FX franchises, offering currency hedging and forwards across many of the same jurisdictions where TCX operates, but as part of a much broader commercial banking business.
• Deutsche Bank: Major EM currencies dealer providing FX swaps, forwards, and non-deliverable forwards across frontier markets, with KfW (a TCX shareholder) also being a German public institution providing risk capital to TCX.
• JP Morgan: Largest EM currencies dealer globally, providing cross-currency swaps and forwards in many of the same frontier markets TCX serves, though typically only in more liquid currencies where alternative markets already exist.
• Citibank: Top-tier EM FX provider with global presence in frontier currency hedging and local currency financing, overlapping with TCX on DFI and infrastructure clients in emerging markets.
• BNP Paribas: European bank with deep emerging markets FX capabilities, including in African and CIS currencies where TCX is most active; sister institution Proparco is itself a TCX shareholder.
• Société Générale: Global bank with significant presence in African and frontier market FX through its subsidiary SG Africa, competing with TCX in currencies where TCX has hedged USD 4.7 billion.
• HSBC: Major emerging markets bank with EM currency capabilities across Asia, Latin America, and other regions where TCX provides hedging, though typically in more liquid currencies.

Emerging players

• Frontclear: Amsterdam-based development-funded vehicle that incentivizes money market development in emerging markets by issuing investment-grade guarantees; directly collaborates with TCX on market development initiatives and shares the same Dutch DFI ecosystem.
• Convergence Blended Finance: Blended finance platform focused on emerging and frontier market private investment, overlapping with TCX's DFI and institutional investor ecosystem in catalysing local-currency financing.

Others

• MIGA: Multilateral Investment Guarantee Agency (World Bank Group) that has developed a joint product with TCX combining currency hedging with political/convertibility risk insurance for frontier markets; an enabling partner rather than a competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/tcxfund
• Facebookfacebook.com/TCXfund
• LinkedInlinkedin.com/company/tcxfund

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Currency Exchange Fund