WASHINGTON, USA – Multilateral Development Banks (MDBs) released a summary of outcomes from a Working Group focused on scalable solutions to increase private capital mobilization. Key goals include expanding local currency lending and improving access to foreign exchange (FX) risk hedging – critical for sustainable economic development.
The group outlined four areas of action:
- Exploring ways for MDBs to use their capital to take on more market and credit risk to support local currency lending.
- Supporting domestic capital market development through advisory services and pilot projects.
- Making FX risk hedging solutions more affordable and accessible.
- Strengthening resources, capabilities, and complementary actions at international and national levels.
Future areas of work in this agenda include assessing current approaches for scalability, improving coordination in market development, and establishing a Policy Forum for deeper collaboration.
This initiative delivers on the MDB Viewpoint Note (April 2024) and aligns with the Roadmap for Better, Bigger, and More Effective MDBs, endorsed by the G20 under Brazil’s leadership.
The outcomes will inform future discussions under South Africa’s G20 presidency and the 4th International Conference on Financing for Development in 2025, as MDBs scale up private sector engagement to tackle global development challenges.
– Read the summary in this link.
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