Every infrastructure project financed in hard currency quietly transfers exchange-rate risk onto a balance sheet least able to bear it. When the currency moves, the project’s economics move with it — and the shock lands on the public purse.
Deepening local-currency bond markets is slower and less glamorous than a signing ceremony, but it is the difference between infrastructure that survives a cycle and infrastructure that becomes a contingent liability.
The coalition’s treasury work — local-currency solutions, guarantee facilities, anchor mandates for domestic institutional buyers — is aimed squarely at this: keeping FX risk off the member’s books while the market matures.
The United Economic Development Fund bears no responsibility for content present on external websites.