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
Boxes
22 Mar 2024
FSR
A number of Boxes on topics of special interest are published in the Financial Stabiilty Review. These boxes can be read as stand-alone documents or within the relevant Financial Stability Review.
https://www.rba.gov.au/publications/fsr/boxes.html
The Australian Financial System
8 Apr 2022
FSR
– April 2022
Another important use of derivatives is to hedge risks that arise from their holdings of foreign-currency denominated assets (such as investments in foreign equity and securities). ... See RBA (2021), ‘Box C: What Did 2020 Reveal About Liquidity
https://www.rba.gov.au/publications/fsr/2022/apr/australian-financial-system.html
The Global Financial Environment
8 Apr 2022
FSR
– April 2022
Capital outflows would contribute to exchange rate depreciations, raising the cost of servicing and rolling over foreign-currency denominated debt, and lead to higher inflation. ... Graph 1.9. Vulnerabilities are less prevalent among Asian EMEs, where
https://www.rba.gov.au/publications/fsr/2022/apr/global-financial-environment.html
Overview
8 Apr 2022
FSR
– April 2022
Commodity prices have increased sharply and there has been an increase in market volatility, which has resulted in some market participants facing liquidity shortfalls. ... A rise in global interest rates could trigger sharp capital outflows in emerging
https://www.rba.gov.au/publications/fsr/2022/apr/overview.html
The Global Financial Environment
8 Oct 2021
FSR
– October 2021
Asian economies tend to have less foreign-currency denominated debt, providing greater capacity to manage the volatility associated with capital outflows. ... The share of debt denominated in foreign currency has increased in several South American
https://www.rba.gov.au/publications/fsr/2021/oct/global-financial-environment.html
Box C: What Did 2020 Reveal About Liquidity Challenges Facing Superannuation Funds?
8 Apr 2021
FSR
– April 2021
funds' increased need for liquid assets to meet margin calls on hedges (held to reduce foreign currency risks); and. ... This illustrates that, in most circumstances, the liquidity risk involved with foreign currency hedging is at least partly mitigated
https://www.rba.gov.au/publications/fsr/2021/apr/box-c-what-did-2020-reveal-about-liquidity-challenges-facing-superannuation-funds.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 Global Financial Environment
9 Oct 2020
FSR
– October 2020
In response, some central banks sold foreign currency reserves to support their currencies and purchased local currency government bonds, which have assisted domestic market functioning. ... Financial market conditions have improved since March, though
https://www.rba.gov.au/publications/fsr/2020/oct/global-financial-environment.html
The Australian and Global Financial Systems
9 Apr 2020
FSR
– April 2020
EMEs with high amounts of external financing or foreign currency debt are particularly vulnerable because they are more exposed to tighter financial conditions offshore, such as in US dollar funding markets. ... the derivatives they use to hedge foreign
https://www.rba.gov.au/publications/fsr/2020/apr/the-australian-and-global-financial-systems.html
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