(i) Market risk
This includes foreign exchange risk, price risk and interest rate risk.
Foreign exchange risk
Foreign exchange risk primarily arises from assets, such as bank deposits and pledge receivables in currencies other than
Swiss Francs, that are revalued against the Swiss Franc between the pledge date and the settlement date. Foreign exchange
risk on these assets is naturally mitigated by the foreign exchange risk on accounts payable that are denominated in currencies
other than Swiss Francs. The main currencies influencing foreign exchange risk are the Euro, Canadian Dollar, Pound
Sterling, Swedish Kronor and the United States (US) Dollar. The IFRC maintains the net exposure within acceptable levels
by buying or selling foreign currencies at spot rates to meet short-term needs.
1
Financial instruments include accounts receivable and sundry receivables only
Financials
335
INTERNATIONAL FEDERATION OF RED CROSS AND RED CRESCENT SOCIETIES, GENEVA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Page 50
Public
4.6 Financial instruments
– Fair values and risk management (continued)
The following table shows the main currencies influencing IFRC’s foreign exchange risk:
Cash & Cash
Equivalents Investments
Receivables
Payables
Liabilities-
ESSN project
Total
2022
CHF 000s
CHF 000s
CHF 000s CHF 000s
CHF 000s CHF 000s
Currency
Swiss Franc
151,794
348,137
68,535
( 17,452)
-
551,014
Euro
94,356
-
55,295
( 8,868)
( 112,585)
28,198
United States Dollar
5,103
-
169,669
( 12,246)
-
162,526
Pound Sterling
-
-
27,121
( 202)
-
26,919
Swedish Kronor
-
-
138
-
-
138
Canadian Dollar
-
-
262
( 89)
-
173
Other currencies
1,448
-
5,698
( 14,993)
-
( 7,847)
252,701
348,137
326,718
( 53,850)
( 112,585)
761,121
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