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Foreign Exchange Risk Management

Foreign Exchange Risk Management

Currency Risk Management:

The Bank may take currency risk in the context of foreign exchange intervention, though no such operations were conducted in the current or preceding year. Additionally, limited other foreign currency exposures may arise in the course of balance sheet management. However, the majority of these potential exposures are matched, mainly through the use of forward exchange contracts and currency swaps, and residual foreign exchange exposures are hedged on a regular basis. Therefore, the Bank has no significant net foreign currency exposure, other than the Bank's investment in the foreign banks.

To tackle Foreign Exchange Risk in JBL Foreign Exchange Risk Management Manual has been implemented.

Beside this the following steps are taken-

  • Counter Party Limits
  • Trading Limits
  • Stop-Loss Limits
  • Open Position Limits
  • Voice Recording
  • Position Reconciliation
  • Market to Market Revaluation
  • All types of Monthly Internal Audit
  • Regulatory Reporting & Risk Reporting of all types of FX transactions
other foreign currency exposures may arise in the course of balance sheet management.