5308.0 - Foreign Currency Exposure, Australia, March Quarter 2017

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/10/2017

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EXPLANATORY NOTES

INTRODUCTION

1 This publication presents results in respect of 31 March 2017, from an ABS survey of Australian resident enterprises with exposure to foreign currency. This is the fifth occasion this survey has been conducted; the first was conducted in respect of 30 June 2001 as a supplementary survey to the Survey of International Investment, with results published in the December quarter 2001 issue of Balance of Payments and International Investment Position (cat. no. 5302.0). Subsequent surveys were conducted in respect of 31 March 2005, 31 March 2009 and 31 March 2013 with results published in the 2005, 2009 and 2013 issues of Foreign Currency Exposure, Australia (cat. no. 5308.0).

SCOPE

2 The scope of the survey was all Australian resident enterprises with significant foreign currency exposure through foreign currency denominated balance sheet positions and/or expected future foreign currency receipts and payments from trade of goods and services. This included government and private institutions, primarily financial corporations, importers and exporters. Expected future foreign currency receipts and payments from trade are not available for 30 June 2001, but are included in the results for 31 March 2005, 2009, 2013 and 2017.

COVERAGE

3 The survey population was designed to include those enterprises that cover in excess of approximately 90 per cent of foreign currency exposure for assets and liabilities, and was supplemented with a sample of importers and exporters with significant foreign currency denominated trade in goods and/or services.

4 Through continuing processes to refine the quality of the survey population, the ABS identified an undercoverage issue in the frame for the 2005 and 2009 surveys. The ABS amended the coverage for the 2013 survey, but was unable to source comparable data to revise historical estimates. As a result, estimates for expected future payments from trade with respect to the 31 March 2013 survey onward are not comparable with results from previous surveys. Additionally, changes to the collection instrument in 20917

INSTITUTIONAL SECTORS AND SUBSECTORS

5 The sectors used in this publication reference the Standard Economic Sector Classifications of Australia 2008 (SESCA) (cat. no. 1218.0). Classification of individual enterprises to subsectors used four-digit classes specified in the Standard Institutional Sector Classification of Australia (SISCA), grouping units according to similar economic functions and structural characteristics. For this publication, the SISCA classes were classified into sectors as follows:

BANKS
RESERVE BANK OF AUSTRALIA
OTHER FINANCIAL CORPORATIONS
CENTRAL BORROWING AUTHORITIES & GENERAL GOVERNMENT
OTHER RESIDENT SECTORS

6 The basic unit that is classified by sector is the institutional unit, which is defined as an economic entity that is capable, in its own right, of incurring liabilities and engaging in economic activities and transactions with other entities.

STATISTICAL UNIT:

7 The unit for which statistics were reported in the survey was the Australian enterprise unit. This consists of all the entities within an Australian enterprise group that are in the same SESCA subsector.

REFERENCE PERIOD:

8 Data contained in this publication relate to foreign currency denominated financial positions (balance sheet) and expected future foreign currency receipts and payments from trade collected from selected enterprises as at 31 March 2017. Summary data from the previous surveys are also included.

ACCURACY AND RELIABILITY:

9 Care should be exercised in the use and interpretation of data in this publication. While every effort is made to ensure the accuracy and reliability of data it is still possible that the variability within data can be significant.

10 Care should be taken when comparing output between reference periods. Changes to the collection instrument as well as differences in the classification of data at output have may result in data items not being directly comparable to previous numbers.

11 Responses were received from approximately 90% of the surveyed enterprises.

ROUNDING:

12 Where figures have been rounded, a discrepancy may occur between the sum of the component items and the total. Published percentages are calculated prior to rounding of figures and therefore a discrepancy may occur between the published percentages and percentages which could be calculated using the published estimates.

SIGN CONVENTION:

13 Contrary to the balance of payments conventions, this publication uses the natural sign convention in the presentation of data, analysis and associated commentary.

CURRENCY CONVERSION:

14 Data are expressed in Australian dollars. Amounts denominated in a foreign currency are collected in Australian currency at the market exchange rate at the reference date.

VALUATION BASIS:

15 In these statistics all asset and liability positions are valued at market prices.

16 The principal value is reported for all financial derivative currency contracts. The principal of a derivative contract is the underlying notional amount upon which the transaction is based.

FURTHER INFORMATION

17 Tables presented in this issue of the publication have been reordered since the 2013 issue of this publication to accommodate a small number of new tables and the removal of other tables as a result of no longer collecting data for Intra-group counterparties. As a reference for users, the following table presents a concordance between the tables for the current 2017 publication and those published in 2013.

Concordance Guide: 2017 to 2013 Website Tables
2017 Website Table Number	2013 Website Table Number
1. Foreign Currency Exposure, at end of period	Table 1
2. Foreign Currency Exposure – by sector – as at 31 March 2017	Table 2
3. Foreign Currency Exposure of assets and liabilities – by currency – as at 31 March 2017	Table 3
4. Foreign Currency Exposure of derivative contracts – by currency – as at 31 March 2017	Table 4
5. Foreign currency debt assets and liabilities, by maturity – by sector – as at 31 March 2017	Table 5
6. Foreign currency assets and liabilities, by counterparty – by currency – as at 31 March 2017	Table 6
7(a–e). Foreign currency assets and liabilities, sector – by currency – as at 31 March 2017	Table 7(a-e)
8(a–e). Foreign currency denominated debt security liabilities, sector, by maturity – by currency – as at 31 March 2017	Table 8(a-e)
9(a–e). Foreign currency denominated assets and liabilities, sector, by level of hedging – by currency – as at 31 March 2017	Table 10(a-e)
10(a–e). Hedging of foreign currency denominated debt security liabilities, sector – by currency – as at 31 March 2017	Table 11(a-e)
11(a–e). Maturity matched hedging of foreign currency denominated debt security liabilities, sector – by currency – as at 31 March 2017	Table 12(a-e)
12. Foreign currency denominated expected receipts and payments from trade – as at 31 March 2017	Table 9
13(a–e). Hedging of foreign currency denominated receipts and payments, sector – by currency – as at 31 March 2017	New
14. Type of derivative contract, by sector – as at 31 March 2017	Table 13
15. Type of derivative contract, by currency – as at 31 March 2017	Table 14
16. Value of derivative contracts, by maturity – by sector – as at 31 March 2017	Table 15
17(a–e). Value of derivative contracts, sector, by counterparty – by currency – as at 31 March 2017	Table 16
18. Hedging policy – Foreign equity assets	Table 17
19. Hedging policy – Foreign currency denominated debt assets	New
20. Hedging policy – Expected future foreign currency denominated receipts from trade	Table 20
21. Hedging policy – Foreign currency denominated debt liabilities	Table New
22. Hedging policy – Expected future foreign currency denominated payments from trade	Table 23
23. Determinants of Hedging Strategy – Foreign equity assets	Table 24
24. Determinants of Hedging Strategy – Foreign currency denominated debt assets	New
25. Determinants of Hedging Strategy – Expected future foreign currency denominated receipts from trade	Table 27
26. Determinants of Hedging Strategy – Foreign currency denominated debt liabilities	New
27. Determinants of Hedging Strategy – Expected future foreign currency denominated payments from trade	Table 30

Tables removed from Publication: 2013 Website Tables

2013 Website Table Number

18. Hedging policy – Foreign currency denominated debt assets (excluding intra-group counterparties)

19. Hedging policy – Foreign currency denominated debt assets (intra-group counterparties)

21. Hedging policy – Foreign currency denominated debt liabilities (excluding intra-group counterparties)

22. Hedging policy – Foreign currency denominated debt liabilities (intra-group counterparties)

25. Determinants of Hedging Strategy – Foreign currency denominated debt assets (excluding intra-group counterparties)

26. Determinants of Hedging Strategy – Foreign currency denominated debt assets (intra-group counterparties)¹

28. Determinants of Hedging Strategy – Foreign currency denominated debt liabilities (excluding intra-group counterparties)¹

29. Determinants of Hedging Strategy – Foreign currency denominated debt liabilities (intra-group counterparties)¹