Kathmandu, Nepal
April 19, 2023
Nepal has become one of the preferred locations for development finance institutions (DFIs) in recent
years. DFIs provide financial support to help developing countries achieve economic growth. Nepal’s
natural beauty, strategic location, and abundant resources make it an attractive location for such
institutions. Foreign aid plays a crucial role in Nepal’s economy and as a result, it is vital for Nepalese banks
to safeguard foreign currencies against exchange rate fluctuations in the market.

NMB Bank Limited, one of the leading commercial banks in Nepal, has successfully conducted the first-
ever recorded hedging transaction of USD 8 Million in partnership with The Currency Exchange Fund (TCX),

Amsterdam and MFX Currency Risk Solutions, Washington. The hedging instrument non-deliverable cross-
currency swap used was sourced by TCX and the transaction was facilitated by MFX. NMB Bank

acknowledged the expertise and professionalism of TCX and MFX Solutions in ensuring the success of the
transaction. This landmark move demonstrates the Bank’s commitment to introducing and prioritizing
such financial mechanism to ensure the safety of foreign currencies.

With this, NMB Bank is now better equipped to manage the risks associated with currency exchange rate
fluctuations, which is particularly important when working with DFIs. Hedging is a technique used to
minimize risks associated with currency exchange rate fluctuations. It is an effective way for businesses
to protect themselves from losses that may occur when the value of a foreign currency changes.
NMB Bank believes this successful hedging transaction now opens door to everyone in the country who
want to perform financial transactions with greater stability and certainty, making it easier for them to do
business in a volatile market and achieve their goals.

‘The Banker Magazine’ of The Financial Times, London, has awarded NMB Bank with the prestigious Bank
of the Year Asia 2021. The bank has also been awarded with Bank of the Year in 2017, 2018, 2020 & 2021.
NMB Bank is currently providing its services through 201 branches, 138 ATMs and 12 extension counters.
About TCX
TCX is a global development finance initiative which offers long term currency swaps and forwards in 100+
financial markets where such products are not available or poorly accessible. The Fund started operations
in 2007 and has since then provided hedging instruments for over USD 11 billion of local currency loans.
As of end 2021, the fund portfolio amounted USD 5 billion spread across 55 currencies, supported by fund
equity of USD 1.2 billion. TCX is rated single A by S&P and A1 by Moody’s. https://www.tcxfund.com/
About MFX
MFX Solutions (MFX) was born as an organization dedicated to providing microfinance lenders with
accessible hedging instruments in nearly all emerging and frontier markets while eliminating the burden
of collateral. MFX, created in 2009, gives impact investors the ability to protect themselves against the