ARTHUR ARNOLD

What is the most valuable lesson we can take forward from the period in which you were CEO of FMO?

Without any doubt, the creation of The Currency Exchange (TCX). Some fourteen years ago, a small group within FMO started thinking about how to address the challenge of increasing access to Local Currency Finance. The exclusive use of so-called "hard" currencies like US dollars, euros, the pound sterling, etc., instead of local currency, is unfortunately one of the biggest shortcomings in development finance of the last 50 years. It has a devastating effect, especially for those people who can least afford it ̶ the small and medium entrepreneurs, and the small consumers, who have no income in these "hard" currencies.

When we first voiced our intention to try and address this issue, we were told we must be dreaming, mission impossible! Well, we kept dreaming, and together we made our dream come true. And how! We overtook many hurdles during our journey, we survived many currency and financial crises in emerging and developing countries, we learned to work together, and we improved the business model again and again. We can conclude that the model based on risk diversification works! Today we are a mutual platform, owned by more than 20 shareholders and investors, all national, regional and multilateral Development Finance Institutions (DFIs). This enables these DFIs to provide Local Currency Finance to their clients, and to assist in developing local currency markets where they do not (or only partially) exist. The actual demand for Local Currency Finance is infinite for the years to come. But how to scale up the supply, that's the challenge. TCX has shown the way. It is possible, but it does require global cooperation in risk sharing and a long-term commitment to make it work.

Which insights gained during your tenure as FMO’s CEO would help us reach the SDGs faster?

Keep dreaming, and keep believing in the SDGs. Keep working together; it is never up to one person alone. Have a long and broad horizon. Sustainable change does not come overnight!