Earlier this week, TCX provided a hedge in Morocco for the first time, allowing a fund to offer its client a loan in dirham (MAD). Through the hedge, a currency mismatch between the borrower’s funding and revenues has been avoided. This first deal had a tenor of three years and was directed toward the microfinance sector in the country.

Hedging in Morocco had been possible for some institutions through local banks, but TCX’s products are becoming increasingly relevant in supporting sustainable lending, in the wake of the decision by the authorities to let the dirham float freely.  TCX expects a significant growth in its activities to support foreign investments in Morocco.

If you are interested in offering local currency loans in Morocco, or if you have any questions or comments, please do not hesitate to contact us: [email protected].