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 Australian Financial System
4 Oct 2019
FSR
– October 2019
In the event of reduced willingness of foreign investors to fund Australian banks, the Australian dollar may depreciate, reducing the foreign currency funding need. ... The banks could also replace the hedged foreign funding with domestic sources with no
https://www.rba.gov.au/publications/fsr/2019/oct/australian-financial-system.html
The Australian Financial System
12 Apr 2019
FSR
– April 2019
Australian banks fully hedge the foreign currency (and interest rate) risk arising from their use of foreign-currency debt. ... In addition, Australian banks use most of their offshore funding to finance Australian assets, rather than foreign
https://www.rba.gov.au/publications/fsr/2019/apr/australian-financial-system.html
The Global Financial Environment
12 Apr 2019
FSR
– April 2019
This lending continues to be partly funded from short-term wholesale markets, resulting in foreign currency liquidity risks. ... In particular, EMEs in the region generally have much larger foreign currency reserves, stronger current account positions,
https://www.rba.gov.au/publications/fsr/2019/apr/global-financial-environment.html
The Global Financial Environment
20 Oct 2018
FSR
– October 2018
This continues to be partly funded from short-term wholesale markets, resulting in foreign currency liquidity risks as noted above. ... For the corporate sector, this is somewhat mitigated by the large proportion of listed EME firms that have at least
https://www.rba.gov.au/publications/fsr/2018/oct/global-fin-env.html
Regulatory Developments
20 Oct 2018
FSR
– October 2018
It describes the home authority's strategy and actions that would be used to address liquidity stress. ... risks. DCE providers exchange money (whether Australian or foreign currency) for digital currency (or vice versa).
https://www.rba.gov.au/publications/fsr/2018/oct/regulatory-developments.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
The Global Financial Environment
10 Apr 2018
FSR
– April 2018
A shift in risk sentiment could expose some EMEs to currency depreciations which would inflate the value of any unhedged foreign currency borrowing and interest costs, while also reducing firms' access ... More generally, rising global interest rates,
https://www.rba.gov.au/publications/fsr/2018/apr/global-financial-environment.html
The Global Financial Environment
20 Oct 2017
FSR
– October 2017
This has exposed some banks to additional liquidity risk, due to the use of short-term foreign currency funding, and to additional credit risk. ... Rising US interest rates will also make it more difficult for emerging market firms to service their
https://www.rba.gov.au/publications/fsr/2017/oct/global-fin-env.html
The Global Financial Environment
21 Apr 2017
FSR
– April 2017
These foreign currency assets have been partly funded or hedged using short-term wholesale markets, raising banks' liquidity risks. ... To date, the authorities have restrained capital outflows and downward pressure on the renminbi by tightening existing
https://www.rba.gov.au/publications/fsr/2017/apr/global-fin-env.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