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Kent: FX Markets Around the Turn of the Year
Today I will discuss some recent developments in the foreign exchange market, and provide some views on the role of the Reserve Bank's various policy measures. I will also briefly discuss a modest change to the way the Bank will be using foreign exchange swaps to manage our foreign exchange needs. A novel development in the market for Australian dollar swaps: Typically, Australian banks pay a small premium to swap foreign currency into Australian dollars. This premium is also referred to as the basis, which is the difference between the implied cost of obtaining Australian dollars in the FX swap market and the cost ... (full story)
Added at 8:11pm
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RBA to make modest changes to how it uses FX swaps