The world bank and forex transaction

The World Bank has disbursed a loan in one of Africa's local currencies for the first time. The 58.2 million South African Rand loan is to support its educational improvement program. The loan was possible thorough a conversion of the originally dollar denominated USD 7.5 million loan which took place on July 15, 2008 and is the first time the World Bank has provided a Rand-denominated financing to any country. World Bank financing in local currencies is available to all IBRD-eligible African countries at variable or fixed forex rates, where there are swap markets or alternative funding instruments for IBRD to hedge itself. African countries benefit from the fact that IBRD accesses the market on behalf of its clients, leveraging its strong credit rating to obtain favorable pricing, and passes it on to the borrower countries. The forex transaction is part of the World Bank’s ongoing efforts to respond to requests from its borrowing member countries to provide flexible financial products in support of their risk management objectives. Welcome to fxdd.