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  • Calculation of the Capital Charge

    • CA-5.5.17

      The capital charge is 8% of the overall net open foreign currency position.

      Apr 08

    • CA-5.5.18

      The table below illustrates the calculation of the overall net open foreign currency position and the capital charge:

      Example of the calculation of the foreign exchange overall net open position and the capital charge

      GBP DEM SAR US$ JPY GOLD and/or silver
      +200 +100 +70 -190 -40 -50
                 
      +370 -230 50

      The capital charge is 8% of the higher of either the sum of the net long currency positions or the sum of the net short positions (i.e. 370) and of the net position in gold and/or silver (i.e. 50) = 420 @ 8% = 33.6

      Apr 08