Page 315 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 313
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
Foreign Exchange Net Open Position (“FX NOP”) to measure, control and monitor its FX risk, and implements FX hedging
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
Generally, the Group is exposed to three (3) types of foreign exchange risk, namely, translation risk, transactional risk and economic
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 2,933,172 30,417 313,337 3,798,965 105,544 47,820 18,115,817 113,171 95,255 55,889 37,746 65,193 55,191 352 25,767,869
strategies to minimise FX exposures. Stress testing is conducted periodically to ensure sufficient capital to buffer the FX risk.
Others RM’000 3,355 - - - - - - - - - - - - - 3,355
exchange risk include mainly exposures to United Arab Emirates Dirham, Qatari Rial and Singapore Dollar.
canadian Dollar RM’000 3,457 - - - - - - - - - - - - - 3,457

Japanese yen RM’000 5,503 - - - - - - - - - - - - - 5,503

Great Britain Pound RM’000 1,164 - - - - - - - - - - - - - 1,164

euro RM’000 9,822 9,822
- - - - - - - - - - - - -

fINANcIAL RIsk MANAGeMeNT OBJecTIves AND POLIcIes (cONT’D.)
swiss franc RM’000 661 661
- - - - - - - - - - - - -

Australian Dollar RM’000
428 - - - - - - - - - - - - - 428

united states Malaysian Dollar Ringgit RM’000 RM’000 176,551 2,732,231 20,025 10,392 165,252 148,085 - 3,798,965 - 105,544 - 47,820 58,896 18,056,921 3 113,168 - 95,255 - 55,889 45 37,701 - 65,193 - 55,191 - 352 420,772 25,322,707

Market risk (cont’d.) Types of market risk (cont’d.) Non-traded market risk (cont’d.) foreign exchange risk (cont’d.) Group 2020 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 cus

(b) (ii)

46.