Open currency position

  The sum of the open currency spot position and the open currency forward position, being the measure of the foreign exchange risk.
  The open currency position is the difference between balance assets and liabilities in foreign currency plus the forward (conditional and unconditional) forex purchased and sales. The open currency position is the measure of the foreign exchange risk. Related position codes are:
  Open currency position per CCY.
  Open currency position per CCY group.
  Total open currency position.
  Related reports are:
  Inquiry of bank-rel-position.
  Open Currency Position.
  Overall Mismatch.
  Mismatch per Book.
  Mismatch per Product.
  Three position codes are defined to monitor the open currency position. The first one is for inquiry purposes and shows the open currency position per currency. Head Office provides the network with separate limits for currency groups and the total open currency position and therefore two positions are created to assign these limits. Both positions are the total of all positions in each currency irrespective whether the position is positive or negative.
  See also Position, position administration tables, Standard position codes, Combined position code, risk management, Foreign exchange risk, Forex, Open currency forward position, Open currency spot position, Mismatch, Interest risk, Liquidity risk, forward revaluation, interest revaluation, break even and Nostro projection.

International financial encyclopaedia . 2014.

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