As mandated by the Board, this document presents the initial analysis of options to minimize the effects of currency fluctuations on the commitment authority of the GCF including FX hedging solutions that might help the Fund to reduce FX risk exposure and to secure higher predictability of the financial resources of the Fund.

The Secretariat reviewed the FX hedging options including natural hedging and FX derivatives hedging in the global market. With the guidance of the Budget Committee the Secretariat has prepared the analysis for Board consideration. During the process Risk management Committee also reviewed the document and provided its inputs to the Budget Committee and the Secretariat for considerations.