{
  "title": "The Prudential Regulation and Management of Foreign Exchange Risk",
  "publication": "IMF Working Papers, March 1, 1998",
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  "summary": "This paper examines issues in the prudential management and regulation of foreign exchange risk. It begins with measurement issues, notably converting foreign currency items into domestic currency terms, and calculating foreign exchange positions.",
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    {
      "heading": "Summary",
      "content": "- Examines issues in the prudential management and regulation of foreign exchange risk.\n- Begins with measurement issues, notably converting foreign currency items into domestic currency terms, and calculating foreign exchange positions.\n- Focus then shifts to managing foreign exchange risks.\n- Emphasizes that the key to effective management lies in the bank’s reporting and internal control systems.\n- Notes that regulators frequently seek to limit such risks directly, usually by:\n  - limiting the overall open position in terms of bank capital, or\n  - requiring that capital be set aside against such risks."
    },
    {
      "heading": "Measurement issues",
      "content": "- Converting foreign currency items into domestic currency terms.\n- Calculating foreign exchange positions.\n- Recording foreign exchange transactions (keyword present in source)."
    },
    {
      "heading": "Managing foreign exchange risks and regulatory approaches",
      "content": "- Effective management relies primarily on bank reporting and internal control systems.\n- Prudential regulation commonly imposes direct limits on foreign exchange risk exposure:\n  - Limits on the overall open position expressed in relation to bank capital.\n  - Capital requirements set aside explicitly against foreign exchange risks.\n- Related supervisory and risk-monitoring tools and concepts noted in source keywords: VAR model, FX limit, market risk, foreign exchange-denominated capital, foreign currency exposure, cross-currency exchange risk.\n\n---\n\n Content in this bundle\n\n- The Prudential Regulation and Management of Foreign Exchange Risk - WP/98/37\n  - The Prudential Regulation and Management of Foreign Exchange Risk - WP/98/37 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - The Prudential Regulation and Management of Foreign Exchange Risk - WP/98/37 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-prudential-regulation-and-management-of-foreign-exchange-risk-2534"
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    "Authors: Richard K. Abrams, Paulina Beato",
    "Published: March 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451845549.001",
    "Examines issues in the prudential management and regulation of foreign exchange risk.",
    "Begins with measurement issues, notably converting foreign currency items into domestic currency terms, and calculating foreign exchange positions.",
    "Focus then shifts to managing foreign exchange risks.",
    "Emphasizes that the key to effective management lies in the bank’s reporting and internal control systems.",
    "Notes that regulators frequently seek to limit such risks directly, usually by:",
    "Converting foreign currency items into domestic currency terms.",
    "Calculating foreign exchange positions.",
    "Recording foreign exchange transactions (keyword present in source).",
    "Effective management relies primarily on bank reporting and internal control systems.",
    "Prudential regulation commonly imposes direct limits on foreign exchange risk exposure:",
    "Related supervisory and risk-monitoring tools and concepts noted in source keywords: VAR model, FX limit, market risk, foreign exchange-denominated capital, foreign currency exposure, cross-currency exchange risk.",
    "**The Prudential Regulation and Management of Foreign Exchange Risk - WP/98/37**"
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