AS THE CURRENCY SINKS BANKS LEARN TO SWIM
Large Australian banks and corporates, caught napping when the Australian dollar plummeted in February last year, have prepared themselves for the dollar’s latest drop from about 74 cents to about 61. They are finding the road to salvation in sharply-increased professionalism, specialized treasury operations, the Euro-Australian dollar bond market and domestic hedging products.
Some, however, are still floundering — particularly the government authorities which find it easier to procrastinate rather than solve their long-term problems.
The Australian dollar’s latest collapse has dispelled any lingering belief among Australian borrowers that low-coupon foreign currency-denominated loans add up to a bargain.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
