This high-level roundtable will examine practical approaches to reducing foreign exchange (FX) risk in development and private finance, and to support the scaling of local currency solutions in Emerging Markets and Developing Economies (EMDEs). Continued reliance on hard currency borrowing in many low and middle-income countries leaves public finances vulnerable to exchange rate shocks, constrains investment in priority sectors, and strains debt sustainability.
This exchange will be situated within the wider commitments of the 2025 Compromiso de Sevilla and will complement ongoing workstreams across multilateral development banks (MDBs), development finance institutions (DFIs) and the private sector. In addition, it will build on lessons from recent initiatives, such as the Trade Finance Conference of Parties (TF COP) and the 2026 Fin4Dev roundtable. This roundtable builds on Wilton Park’s long-standing role as a trusted convenor of high-level dialogue on international financial reform, and recent discussions related to sovereign debt sustainability and development finance.
By bringing together policymakers, MDBs, DFIs, central banks, investors and other technical experts, the roundtable will focus on the tools, approaches, reforms and coordination mechanisms used by international actors to manage FX risk and scale local currency solutions. Discussions will consider how these approaches interact with, and are supported by, domestic institutions while maintaining an emphasis on cross-cutting solutions. The invited group will explore practical ways to deepen and scale FX derivatives markets for Global South currencies, which often require greater depth and liquidity to enable local currency lending by foreign institutions.
Discussions will be grounded in recent and ongoing initiatives, with a view to identifying practical lessons learning, gaps and opportunities for further collective action. The roundtable will help to shape proposals for future uptake and implementation.
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