THE ROLE OF BANK FOREIGN EXCHANGE OPERATIONS IN FINANCING GREEN PROJECTS

Abstract

The transition to a green economy requires substantial financial resources and efficient financial mechanisms. In this context, commercial banks play a crucial role in mobilizing and allocating funds through foreign exchange operations. This paper examines the role of bank foreign exchange operations in financing green projects, with particular attention to cross-border capital flows, green financial instruments, and currency risk management. Using a conceptual reporting framework for green finance, the study analyses how green debt securities and green listed shares are issued, held, and transferred across sectors. The results highlight the growing importance of foreign exchange operations in ensuring transparency, mitigating currency risks, and supporting sustainable financing under conditions of financial globalization and digitalization.