Foreign Currency Risk
The Asset and Liability Management Committee is responsible for currency risk management having power to: a) stipulate the guidlines for foreign currency risk management; b) approve methodology of currency risk management and c) set open position limits for every currency (within limits set by supervisory authority - Financial and Capital Market Commision)
According to the legislation of Latvia the open foreign exchange position shall not exceed:
| % of equity |
| Each currency | +/- 10% |
| Total in all currencies | +/- 20% |
The internal bank limits imposed are:
| % of equity |
| USD | +/- 1 % |
| EUR | +/- 3 % |
| Any other currency | +/- 0.3 % |
