BEGIN:VCALENDAR VERSION:2.0 PRODID:unctad.org BEGIN:VEVENT UID:6a758d70ca12f DTSTART:20250318T080000Z SEQUENCE:0 TRANSP:OPAQUE DTEND:20250318T090000Z LOCATION:Geneva\, Switzerland SUMMARY:Side event at 14th Debt Conference: Roundtable on currency risk and debt sustainability CLASS:PUBLIC DESCRIPTION:Local currency depreciation can have a profound negative impact on a country’s debt sustainability. It can significantly increase a co untry’s debt burden when there are high levels of foreign currency-denom inated debt.A recent Economic Outlook by the African Development Bank show s to what degree increases in African public debt burdens are driven by ex change rate depreciation.IMF data supports the strong relation between cur rency (FX) risk and debt distress. Empirical data over the past 30 years s hows that FX is a highly influential factor affecting the increase in debt servicing costs in developing countries.Hence\, managing FX risk in publi c debt portfolios is critically important for debt sustainability.Sourcing local currency financing would mitigate this risk. However\, many develop ing economies have shallow onshore markets wherein the local deposits and savings base are inefficient to absorb the demand for local currency.  At the same time\, access to hard currency is essential to the balance of pa yments. What other options do Debt Management Offices (DMOs) have availab le to manage FX risk in the short term?How can they source foreign currenc y-denominated financing without embedded FX risk?What practical steps can DMOs take to access offshore capital markets and attract international inv estors?How does this contribute to domestic capital market development?Obj ective and intended outcomeThis workshop\, targeted for Debt Management Of fices\, addresses these questions through peer-to-peer learning. Real-life examples will be shared to demonstrate how some developing countries have taken important steps to lower their FX risk exposure.The session will co llect feedback from participants on challenges that their DMOs face in FX risk management and will highlight the importance of capacity building to effectively manage and utilize local currency financing.Participants will leave the workshop with a better understanding of howto manage FX risk and practical next steps they can take in collaboration with TCX.Co-organizer sThe workshop is facilitated by the Currency Exchange Fund (TCX)\; a devel opment finance initiative that is impact-driven and protects borrowers in emerging and frontier markets from FX risk.The Fund specializes in providi ng FX risk solutions in over 100 emerging and frontier currencies\, even i n the most challenging markets\, without tenor limitations.<\;p>\;Loca l currency depreciation can have a profound negative impact on a country ’s debt sustainability.&\;nbsp\;It can significantly increase a count ry’s debt burden when there are high levels of foreign currency-denomina ted debt.<\;/p>\;<\;p>\;A recent Economic Outlook by the African D evelopment Bank shows to what degree increases in African public debt burd ens are driven by exchange rate depreciation.<\;/p>\;<\;p>\;IMF da ta supports the strong relation between currency (FX) risk and debt distre ss. Empirical data over the past 30 years shows that FX is a highly influe ntial factor affecting the increase in debt servicing costs in developing countries.<\;/p>\;<\;p>\;Hence\, managing FX risk in public debt p ortfolios is critically important for debt sustainability.<\;/p>\;<\ ;p>\;Sourcing local currency financing would mitigate this risk. However \, many developing economies have shallow onshore markets wherein the loca l deposits and savings base are inefficient to absorb the demand for local currency. &\;nbsp\;<\;/p>\;<\;p>\;At the same time\, access to hard currency is essential to the balance of payments.&\;nbsp\;<\;/p >\;<\;ul>\;<\;li>\;What other options do Debt Management Offices (DMOs) have available to manage FX risk in the short term?<\;/li>\;&l t\;li>\;How can they source foreign currency-denominated financing witho ut embedded FX risk?<\;/li>\;<\;li>\;What practical steps can DMOs take to access offshore capital markets and attract international investo rs?<\;/li>\;<\;li>\;How does this contribute to domestic capital m arket development?<\;/li>\;<\;/ul>\;<\;h4>\;<\;strong>\;Ob jective and intended outcome<\;/strong>\;<\;/h4>\;<\;p>\;This workshop\, targeted for Debt Management Offices\, addresses these question s through peer-to-peer learning. Real-life examples will be shared to demo nstrate how some developing countries have taken important steps to lower their FX risk exposure.<\;/p>\;<\;p>\;The session will collect fee dback from participants on challenges that their DMOs face in FX risk mana gement and will highlight the importance of capacity building to effective ly manage and utilize local currency financing.<\;/p>\;<\;p>\;Part icipants will leave the workshop with a better understanding of howto mana ge FX risk and practical next steps they can take in collaboration with TC X.<\;/p>\;<\;h4>\;<\;strong>\;Co-organizers<\;/strong>\;&l t\;/h4>\;<\;p>\;The workshop is facilitated by the Currency Exchange Fund (TCX)\; a development finance initiative that is impact-driven and p rotects borrowers in emerging and frontier markets from FX risk.<\;/p> \;<\;p>\;The Fund specializes in providing FX risk solutions in over 1 00 emerging and frontier currencies\, even in the most challenging markets \, without tenor limitations.<\;/p>\;\n\nView meeting on unctad.org\nh ttps://unctad.org/meeting/side-event-14th-debt-conference-roundtable-curre ncy-risk-and-debt-sustainability DTSTAMP:20260807T074656Z END:VEVENT END:VCALENDAR