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Foreign Currency Exposure and Hedging in Australia

Author

Listed:
  • Laura Berger-Thomson

    (Reserve Bank of Australia)

  • Blair Chapman

    (Reserve Bank of Australia)

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.

Suggested Citation

  • Laura Berger-Thomson & Blair Chapman, 2017. "Foreign Currency Exposure and Hedging in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 67-76, December.
    • Handle: RePEc:rba:rbabul:dec2017-08
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/bulletin/2017/dec/pdf/bu-1217-8-foreign-currency-exposure-and-hedging-in-australia.pdf
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    References listed on IDEAS

    as
    1. James Bishop & Natasha Cassidy, 2012. "Trends in National Saving and Investment," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 9-18, March.
    2. Anthony Rush & Dena Sadeghian & Michelle Wright, 2013. "Foreign Currency Exposure and Hedging in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 49-58, December.
    3. Belinda Cheung, 2017. "Developments in Banks' Funding Costs and Lending Rates," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 45-50, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bank for International Settlements, 2020. "US dollar funding: an international perspective," CGFS Papers, Bank for International Settlements, number 65, december.

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