Page 313 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 311
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

are funded in the same currency. The Group controls its FX exposures by transacting in permissible currencies. It has an internal
risk, which are managed in accordance with the market risk policy and limits. The FX translation risks are mitigated as the assets
Generally, the Group is exposed to three (3) types of foreign exchange risk, namely, translation risk, transactional risk and economic
US Dollar, Australian Dollar, Swiss Franc, Euro, the Great Britain Pound, Japanese Yen and Canadian Dollar. The “others” foreign
The table below analyses the net foreign exchange positions of the Group and the Bank by major currencies, which are mainly in
Foreign Exchange Net Open Position (“FX NOP”) to measure, control and monitor its FX risk, and implements FX hedging
Foreign exchange (“FX”) risk arises as a result of movements in relative currencies due to the Group’s operating in business

activities, trading activities and structural foreign exchange exposures from foreign investments and capital management activities.
Total RM’000 1,142,291 31,184 321,276 4,866,770 107,109 5,437 - 20,671,306 33,700 130,148 56,564 29,423 76,671 52,008 42,504
strategies to minimise FX exposures. Stress testing is conducted periodically to ensure sufficient capital to buffer the FX risk.
Others RM’000 2,552 - - - - - - - - - - - - 2,552 27,566,391
exchange risk include mainly exposures to United Arab Emirates Dirham, Qatari Rial and Singapore Dollar.
canadian Dollar RM’000 3,437 - - - - - - - - - - - - - 3,437

Japanese yen RM’000 1,068 - - - - - - - - - - - - - 1,068

Great Britain Pound RM’000 1,695 - - - - - - - - - - - - - 1,695

euro RM’000 921 921
- - - - - - - - - - - - -

fINANcIAL RIsk MANAGeMeNT OBJecTIves AND POLIcIes (cONT’D.)
swiss franc RM’000 522 522
- - - - - - - - - - - - -

Australian Dollar RM’000
136 - - - - - - - - - - - - - 136

united states Malaysian Dollar Ringgit RM’000 RM’000 114,207 1,017,753 16,670 14,514 168,385 152,891 - 4,866,770 - 107,109 - 5,437 103,284 20,568,022 3 33,697 - 130,148 - 56,564 19 29,404 - 76,671 - 52,008 - 42,504 402,568 27,153,492

Market risk (cont’d.) Types of market risk (cont’d.) Non-traded market risk (cont’d.) foreign exchange risk Group 2021 assets Cash and short-term funds Cash and placements with financial institutions Financial investments designated at fair value through profit and loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Islamic derivative financial assets Financing of customers

(b) (ii)

46.