Foreign exchange risk arises when there are differences between the Group's assets and liabilities in a given currency. Currency trading must at all times be conducted within adopted limits and authorisations. The Group's limits define quantitative measures for maximum net foreign currency exposure, measured in Norwegian kroner.
The Group has established limits for net exposure in each individual currency, as well as for aggregate net foreign currency exposure (expressed as the highest of the sum of long and short positions). Overnight exchange rate risk for spot trading in foreign currency must not, on a net basis, exceed NOK 127.5 million per individual currency or NOK 150.0 million on an aggregate basis.
Foreign exchange risk has been low throughout the year. For further details see note 6 on risk factors.
|Parent Bank||Net foreign exchange exposure NOK||Group|
|100||150||Overall currency limit||150||100|
|85||128||Total per currency||128||85|
|1.0||1.8||Result effect of 3 % change||1.8||1.0|