Foreign Exchange Swaps Decline 60%
MANILA, Philippines - The central bank's foreign exchange (FX) swaps amounted to $7.125 billion at the end of 2011, 60 percent or $10.72 billion lower compared to end-2010's $17.827 billion of forwards and futures positions of the monetary authority.
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said the BSP has been necessarily unwinding its FX swaps, just one of the set and usual ways of managing FX liquidity.
Forwards or swaps as derivative instruments are used as defensive approach to a volatile FX market. It is a financial transaction between two parties which agreed to exchange two currencies at a certain exchange rate in an agreed future …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Foreign Exchange Swaps Decline 60%. Contributors: Not available. Newspaper title: Manila Bulletin. Publication date: February 1, 2012. Page number: Not available. © 2009 Manila Bulletin Publishing Corp. COPYRIGHT 2012 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.