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.
Search Results
The Provision of Systemic Liquidity Services by the Public Sector
27 Oct 2008
RDP
2008-06
In particular, central banks (including the RBA) have been prepared to intervene in the foreign exchange market to provide two-way liquidity, and have also intervened when the value of the ... In principle, the same logic that has been used to justify
https://www.rba.gov.au/publications/rdp/2008/2008-06/pro-systemic.html
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Trends in the Funding and Lending Behaviour of Australian Banks
2 Feb 2015
RDP
PDF
1090KB
2 Banks hedge foreign currency-denominated funding to protect themselves from the risk that a. ... For a broader discussion of foreign currency hedging by Australian entities see Rush, Sadeghian and Wright (2013).
https://www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-15.pdf
Promoting Liquidity: Why and How?
2 Dec 2009
RDP
PDF
484KB
In contrast, in foreign exchange markets a change in the economic environment and a sharp increase in uncertainty can result in very large movements in prices, but liquidity is not normally ... Indeed, it is notable that liquidity in foreign exchange
https://www.rba.gov.au/publications/rdp/2008/pdf/rdp2008-06.pdf
Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
1 Sep 2019
RDP
2019-09
into the foreign currency. ... Specifically, it is the return earned from lending AUD against the foreign currency in the spot market, investing the foreign currency in three-month JPY or USD London Interbank Offered Rate
https://www.rba.gov.au/publications/rdp/2019/2019-09/full.html
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Funding Behaviour
31 Dec 2013
RDP
2013-15
Furthermore, a sizeable proportion of Australia's superannuation assets are invested in foreign currency-denominated assets, some of which are hedged back into Australian dollars. ... For a broader discussion of foreign currency hedging by Australian
https://www.rba.gov.au/publications/rdp/2013/2013-15/funding-behaviour.html
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Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
12 Sep 2019
RDP
PDF
1464KB
of Australian dollars (AUD) into the foreign currency. Specifically, it is the return earned from. ... lending AUD against the foreign currency in the spot market, investing the foreign currency in.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-09.pdf
Identifying Repo Market Microstructure from Securities Transactions Data
13 Aug 2018
RDP
PDF
2622KB
transacted through foreign (i.e. non-Austraclear) infrastructure, the two datasets have a robust. ... day liquidity needs that arise from their business-related cash flows. Moreover, the interest rates.
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-09.pdf
Conclusions
31 Dec 2011
RDP
2011-02
But, the central bank's ability to maintain a given exchange rate with market forces that would otherwise depreciate the domestic currency is limited by its stock of foreign reserves. ... The central bank can buy foreign currency without bounds, but can
https://www.rba.gov.au/publications/rdp/2011/2011-02/conclusions.html
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Australia's Experience with Financial Reform
31 Dec 2014
RDP
2014-10
In particular, the ability of Australian entities to hedge their foreign currency risk ultimately depends on foreigners being willing to hold Australian dollar exposure. ... 2006). For more information on foreign currency hedging in Australia, see Becker
https://www.rba.gov.au/publications/rdp/2014/2014-10/aus-exp-fin-reform.html
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The Model
1 Dec 1989
RDP
8909
Equation (7) specifies the demand for money, with τ reflecting shocks to liquidity preference. ... Equations (8), (9) and (10) specify that innovations to the nominal exchange rate (the domestic price of foreign currency), real government expenditure
https://www.rba.gov.au/publications/rdp/1989/8909/model.html