Currency Risk: Cover for Spot and Forward Currency Transactions | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Insurance Company – Risk Management

Chapter

Currency Risk: Cover for Spot and Forward Currency Transactions

Printed on: 14/06/2025

Rulebook at: 01/01/2016


2

Currency Risk: Cover for Spot and Forward Currency Transactions

2.1

A firm must cover a contract providing for the purchase or sale of foreign currency by:

  1. (1) holding the currency that must be paid by the firm under the contract; or
  2. (2) being subject to an offsetting transaction.
  • 01/01/2016