The Ethiopian Capital Market Authority (ECMA) has opened discussions with The Currency Exchange Fund (TCX) on introducing currency risk hedging solutions, as the country looks to deepen its newly launched securities exchange.

The talks, led by ECMA Director General Hana Tehelku, involved TCX Deputy Chief Executive Boukrami and Vice President for Structuring and Sales Tandia. According to ECMA, the discussions focused on how hedging instruments could support Ethiopian issuers in mobilising foreign capital by protecting investors against exchange rate volatility.

TCX, established in 2007 by a consortium of development finance institutions, provides hedging services in frontier and emerging markets. The fund’s mandate is to reduce currency risk, a key barrier to international investment in economies with limited access to such financial tools.

Ethiopia inaugurated its first securities exchange earlier this year, a milestone in its push to modernise the financial sector. Regulators and market operators are now seeking ways to attract international participation, with foreign exchange shortages and a weakening birr seen as major hurdles.