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Guidelines for the Management of Crown and Departmental Foreign Exchange Exposure

Publication Details

  • Guidelines for the Management of Crown and Departmental Foreign Exchange Exposure
  • Published: 24 Nov 2003
  • Status: Current
  • Author: The Treasury
  • Hard copy: Available in Adobe PDF format only. HTML available on request from info@treasury.govt.nz.
  • Persistent URL for bibliographic use:
    http://purl.oclc.org/nzt/g-cdfee
 


Guidelines for the Management of Crown and Departmental Foreign Exchange Exposure

Published: 24 November 2003

The Crown's policy on the management of Crown and departmental foreign-exchange exposure is outlined in Treasury Circular 1990/4 of 16 March 1990. This policy requires departments to cover all material foreign-exchange exposures on transactions related to their normal course of business in terms of guidelines approved by the Minister of Finance.

The ‘Guidelines for the Management of Crown and Departmental Foreign-Exchange Exposure’ were approved by the Minister of Finance in March 1990 and subsequently incorporated into Treasury Instructions.

During 2003, Treasury undertook a review of the guidelines, which highlighted a number of ways in which these could be improved. As a result, the guidelines have been updated and reissued, pursuant to section 80 of the Public Finance Act 1989 (Treasury Instructions).

These guidelines replace the guidelines dated March 1990.

Contents

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Preface

Introduction

1. Foreign-Exchange Policy Objectives

2. Foreign-Exchange Exposure Faced by the Department

3. Accountabilities and Responsibilities

4. Identification and Timing of Cover

5. Covering Transaction Exposure

6. Counterparties

7. Bank Accounts

8. Reporting

SCHEDULE I: Instruments for the Management of Foreign-Exchange Exposure

SCHEDULE II: the Role of the New Zealand Debt Management Office

SCHEDULE III: Procedure for Opening a Foreign-Currency Bank Account

SCHEDULE IV: Outline for a Foreign-Exchange Policy Document

fxexposure.pdf (117 KB) pp. 1-29
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