Search: foreign-currency liquidity
RBA Glossary definition for foreign-currency liquidity
foreign-currency liquidity – The capacity to exchange foreign currency for domestic currency without significantly moving the exchange rate. The extent to which a foreign currency may be traded readily without causing a significant movement in price.
RBA Glossary definition for liquidity
liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.
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Financial Intermediaries
10 Mar 2006
FSR
– March 2006
This reliance on foreign funding has not exposed the banking system to foreign exchange risk, as the currency risk on foreign-currency-denominated debt is typically fully hedged using cross-currency ... low at $18 billion, and that this was more than
https://www.rba.gov.au/publications/fsr/2006/mar/fin-intermed.html
The Global Financial Environment
8 Apr 2021
FSR
– April 2021
In late February, the increase in yields was exacerbated by low liquidity in government bond markets. ... This increase in debt has also increased currency risk where the debt denominated in foreign currency is unhedged, and the risk of capital outflows
https://www.rba.gov.au/publications/fsr/2021/apr/global-financial-environment.html
The Australian Financial System
20 Oct 2016
FSR
– October 2016
Banks' resilience to liquidity and funding shocks has improved since the financial crisis. ... Each of the major banks have issued AT1 instruments this year despite primary market spreads remaining elevated, and ANZ issued the first foreign
https://www.rba.gov.au/publications/fsr/2016/oct/aus-fin-sys.html
Financial Intermediaries
10 Mar 2004
FSR
– March 2004
Another determinant of credit risk is the mix between banks' domestic and foreign assets. ... The vast bulk of the banks' foreign currency borrowing is fully hedged and hence does not carry exchange rate risk.
https://www.rba.gov.au/publications/fsr/2004/mar/fin-intermed.html
Financial Intermediaries
10 Mar 2007
FSR
– March 2007
Lately, foreign-owned banks' assets have grown particularly strongly, increasing by 20 per cent over the year to January (Graph 33). ... The foreign-currency risk is, however, almost fully hedged using derivative instruments.
https://www.rba.gov.au/publications/fsr/2007/mar/fin-intermed.html
Box E: Financial Soundness Indicators
10 Mar 2005
FSR
– March 2005
23. Foreign-currency-denominated loans to total loans. 24. Foreign-currency-denominated liabilities to total liabilities. ... 30. Earnings to interest and principal expenses. 31. Net foreign exchange exposure to equity.
https://www.rba.gov.au/publications/fsr/2005/mar/box-e.html
The Australian Financial System
20 Oct 2015
FSR
– October 2015
Depreciation of the Australian dollar also tends to add to banks' liquidity because they then receive collateral inflows from counterparties to their derivative transactions for hedging foreign-currency-denominated debt. ... Banks' HQLA was split roughly
https://www.rba.gov.au/publications/fsr/2015/oct/aus-fin-sys.html
The Australian Financial System
10 Sep 2013
FSR
– September 2013
The depreciation of the Australian dollar against the US dollar this year should slightly reduce the need for banks to use global funding markets, as less foreign currency issuance is required ... A further factor boosting the banks' liquid assets
https://www.rba.gov.au/publications/fsr/2013/sep/aus-fin-sys.html
The Australian Financial System
10 Mar 2015
FSR
– March 2015
Banks have retained good access to a range of foreign currency bond markets, even though the cost of swapping some foreign currencies back into Australian dollars has increased a little. ... 19). While the recent depreciation of the Australian dollar
https://www.rba.gov.au/publications/fsr/2015/mar/aus-fin-sys.html
The Australian Financial System
10 Apr 2018
FSR
– April 2018
Much of this offshore borrowing is in foreign currencies. Australian-located banks' net foreign currency liability position as at March 2017 was $238 billion, which was around 120 per cent of ... However, the 2017 Survey of Foreign Currency Exposures
https://www.rba.gov.au/publications/fsr/2018/apr/australian-financial-system.html