MARRAKESH, Morocco- In a significant step toward strengthening local currency financing solutions, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (www.ICIEC.IsDB.org), a multilateral credit and political risk insurer and a member of the IsDB Group and The Currency Exchange Fund N.V (TCX) ceremoniously inked a Memorandum of Understanding (MoU). This landmark alliance was solidified in the vibrant city of Marrakesh on the sidelines of the Annual Meetings of the World Bank Group and the IMF.
This strategic collaboration aims to provide alternative financing solutions in local currency to ICIEC Member States. It underscores both entities’ commitment to enhancing the economic landscape of these states by offering blended insurance and hedging structures to ICIEC policyholders consistent with Islamic principles.
“This collaboration marks a pivotal moment in our ongoing efforts to support our Member States. By joining forces with TCX, we can offer more comprehensive solutions, blending insurance with currency risk hedging, ensuring sustainable and transparent financial growth in our regions,” said Mr. Oussama Kaissi, Chief Executive Officer of ICIEC.
Under this MoU, both parties will actively share information and insights, driving mutual projects that can benefit from their collective support. They will jointly foster local currency financing to be provided by ICIEC Policyholders and hedged by TCX. Additionally, training sessions and workshops will be organized in relevant countries to raise awareness about local currency financing and hedging solutions.
The signing of this MoU not only fortifies the commitment of both ICIEC and TCX to their foundational objectives but also paves the way for a more resilient and inclusive financial ecosystem in the Member States.
ICIEC commenced operations in 1994 to strengthen economic relations between OIC Member States, promote intra-OIC trade, and facilitate investments by providing risk mitigation tools and financial solutions. The Corporation is uniquely the only Islamic multilateral insurer in the world. It has delivered a comprehensive suite of solutions and services to the public and private in its 49 Member States and globally. The products’ suite includes Documentary Credit Insurance Cover, Credit Insurance Cover, Bank Master Policy, Non-Honouring of Sovereign Financial Obligation, and Investment Insurance Products. ICIEC has maintained for 15 consecutive years an “Aa3” insurance financial strength credit rating from Moody’s, ranking the Corporation among the top of the Credit and Political Risk Insurance (CPRI) Industry. ICIEC’s resilience is underpinned by its sound underwriting, reinsurance, and risk management policies. Cumulatively, ICIEC has insured more than US$ 100bn in trade and investment directed to specific sectors – energy, manufacturing, infrastructure, healthcare, and agriculture.