Foreign Currency Exposure and Hedging in Australia

Laura Berger-Thomson and Blair Chapman
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Laura Berger-Thomson: Reserve Bank of Australia
Blair Chapman: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2017, 67-76

Abstract: The latest Survey of Foreign Currency Exposure confirms that Australian entities' financial positions are well protected against a depreciation of the Australian dollar. Consistent with previous surveys, the net foreign currency exposures of the banking sector are fully hedged. This means that the sector's overall foreign currency liability position would not in itself be a source of vulnerability in the event of a sudden depreciation of the Australian dollar.

Keywords: Hedging; Derivatives; International investment position; Foreign currency exposure; Banks’ foreign currency exposure; Floating exchange rate; Australian dollar (search for similar items in EconPapers)
Date: 2017
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