Foreign Exchange Risk is the current or prospective risk to earnings and capital that arises from adverse movements in foreign exchange rates. Triodos Bank’s base currency is the Euro. The UK Branch balance sheet and profit and loss are denominated in GBP.
Triodos Bank aims to avoid net currency positions, with the exception of those arising from strategic investments. The term positions in foreign currencies reflect mainly the currency derivatives for Triodos Investment Funds which are nearly fully hedged.
The Foreign Exchange Risk is monitored daily and monthly discussed in the Asset and Liability Committee. Limits are agreed by the Executive Board based on a proposal made by the Asset and Liability Committee.
Foreign Currency Position
The following table shows Triodos Bank’s Foreign Currency Position in thousands of EUR as at 31 December.
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|
2011 |
Cash position |
Cash position |
Term position |
Term position |
Net position |
Net position |
|
|
|
|
|
|
|
|
|
GBP |
552,479 |
552,438 |
— |
— |
41 |
— |
|
USD |
4,372 |
334 |
192,547 |
192,573 |
4,012 |
— |
|
MXN |
— |
— |
877 |
877 |
— |
— |
|
NOK |
129 |
— |
— |
— |
129 |
— |
|
KES |
— |
— |
2,198 |
2,198 |
— |
— |
|
PEN |
— |
— |
11,329 |
11,329 |
— |
— |
|
ZAR |
— |
— |
718 |
718 |
— |
— |
|
DKK |
1 |
— |
— |
— |
1 |
— |
|
AUD |
808 |
— |
— |
550 |
258 |
— |
|
ARS |
— |
— |
337 |
337 |
— |
— |
|
SEK |
48 |
— |
— |
— |
48 |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
557,837 |
552,772 |
208,006 |
208,582 |
4,489 |
— |
|
|
|
|
|
|
|
|
Net open Foreign Currency Position (total of net positions debit and credit): 4,489
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|
2010 |
Cash position |
Cash position |
Term position |
Term position |
Net position |
Net position |
|
|
|
|
|
|
|
|
|
GBP |
482,249 |
481,769 |
— |
— |
480 |
— |
|
USD |
1,681 |
66 |
163,375 |
163,350 |
1,640 |
— |
|
MXN |
— |
— |
966 |
966 |
— |
— |
|
KES |
— |
— |
2,226 |
2,226 |
— |
— |
|
PEN |
— |
— |
13,822 |
13,822 |
— |
— |
|
ZAR |
— |
— |
847 |
847 |
— |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
483,930 |
481,835 |
181,236 |
181,211 |
2,120 |
— |
|
|
|
|
|
|
|
|
Net open foreign currency position (total of net positions debit and credit): 2,120
