Foreign exchange risk

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 monthly in the Asset and Liability Committee. Limits are agreed by the Executive Board based on a proposal made by the Asset and Liability Committee.

The following table shows Triodos Bank’s foreign currency position in thousands of EUR as at 31 December.

  (XLS:) Download XLS

2010
Amounts in thousands of EUR

Cash position

Cash position

Term position

Term position

Net position

Net position

 

Debit

Credit

Debit

Credit

Debit

Credit

 

 

 

 

 

 

 

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

  (XLS:) Download XLS

2009
Amounts in thousands of EUR

Cash position

Cash position

Term position

Term position

Net position

Net position

 

Debit

Credit

Debit

Credit

Debit

Credit

 

 

 

 

 

 

 

GBP

390,053

390,621

5,484

5,484

568

USD

5,193

73

123,486

127,013

1,593

MXN

1,550

1,550

KES

11,570

11,570

PEN

754

754

ZAR

706

706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

395,246

390,694

143,550

147,077

1,593

568

 

 

 

 

 

 

 

Net open foreign currency position (total of net positions debit and credit): 2.161

Create your own report

Chart Generator – Create your own charts (teaser)

Chart Generator

Easily digested facts and figures,
for you to create and download.

Create your own charts

Impact – What difference did Triodos Bank make in 2010? (teaser)