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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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
China's Financial System Reforms
31 Dec 2014
RDP
2014-10
But the lack of volatility in the exchange rate, restrictions on the use of foreign currency in China and controlled access to offshore markets have limited the depth and liquidity of ... of counterparties for Chinese entities seeking to hedge their
https://www.rba.gov.au/publications/rdp/2014/2014-10/chi-fin-sys-reforms.html
Comparing Financial Reform in Australia and China
31 Dec 2014
RDP
2014-10
For Australia, a deep and liquid foreign exchange derivatives market has, over time, proven crucial for allowing residents to access overseas funds, while effectively managing their currency and interest rate exposures. ... Despite the development of an
https://www.rba.gov.au/publications/rdp/2014/2014-10/com-fin-ref-aus-china.html