BSTDB Expands Frontier Currency Solutions Through Partnership with The Currency Exchange Fund (TCX)

News | 09-Apr-2024

Collaboration Strengthens Regional Financial Resilience with Strategic Partnership

In a significant development for fostering regional financial resilience, the Black Sea Trade and Development Bank (BSTDB) announces the successful completion of its first-ever transaction with The Currency Exchange Fund (TCX). This debut transaction marks a milestone in BSTDB's commitment to delivering comprehensive solutions that effectively navigate the complexities of volatile and frontier financial markets of its member countries.

The collaboration involves a strategic cross currency swap, converting Azeri Manat disbursement and repayments into US Dollar (USD) flows on a loan provided by BSTDB to a leading bank in Azerbaijan. Through this first transaction with TCX, BSTDB ensures it continues to receive USD repayments, while the client benefits from the financial stability of fixed debt service costs in their local currency, the Manat. The arrangement safeguards the Azeri bank and its clients against the potential depreciation of the Manat.

"We are delighted to join the distinguished club of institutions leveraging the expertise of TCX to expand the range of frontier currency offerings to clients. The partnership with TCX reflects BSTDB's strong commitment to support sustainable economic growth and secure finance solutions for its development clients. Our lasting partnership will help take foreign exchange risk off the list of concerns for our clients in these times of uncertainty and help them unlock new growth opportunities," said Dr. Serhat Köksal, BSTDB President.