BIS urges institutions to lower FX risk
The Bank for International Settlements (BIS) has recommended financial institutions reduce and control large and long-lasting foreign currency exposures, in a report published yesterday.
Progress in reducing foreign exchange settlement risk – consultative report asks for banks, industry groups and central banks to build on the successes of the last decade in reducing foreign exchange-related risk.
BIS said: “A notable share of FX transactions is settled in ways that still generate significant potential risk across the global financial system, so further action is needed.”
BIS has asked for comments on the report, which the bank must receive before October 12.
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