B.34/22: Policy to minimize the effect of currency fluctuations on commitment authority
The Board, having considered document GCF/B.34/13 titled “Policy to minimize the effect of currency fluctuations on the commitment authority of GCF”:
- Takes note of the information presented in document GCF/B.34/13 titled “Policy to minimize the effect of currency fluctuations on the commitment authority of GCF”;
- Adopts the Policy to minimize the effect of currency fluctuations on the commitment authority of GCF (the “Policy”) as set out in annex XIV;
- Approves an additional administrative budget of USD 585,000 that might be used in 2022 and 2023 as necessary to implement this Policy, including for legal and outsourcing services and fees, and requests the Secretariat to include the budget necessary to implement this Policy in future annual budget requests;
- Approves, effective from 1 January 2023, the establishment of a collateral reserve and the set-aside of USD 50 million for the provision of this reserve, as necessary to cover potential collateral requirements associated with the implementation of this Policy;
- Requests the Secretariat, in consultation with the Budget Committee with respect to any related budgetary implications, to explore the mitigation of the wider emerging financial risks outlined in section II of document GCF/B.34/13 and to present to the Board any recommended action for its consideration; and
- Decides that, if at any time the Risk Management Committee is not constituted, the functions of the Risk Management Committee as specified in the Policy shall be discharged by the Board, except the approval of counterparty limits pursuant to paragraph 6(a)(iii) of the Policy, which shall be approved by the Executive Director