HSBC 2003 Annual Report Download - page 315

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(d) Structural currency exposures
HSBC’ s structural foreign currency exposure is represented by the net asset value of its foreign currency equity
and subordinated debt investments in subsidiary undertakings, branches, joint ventures and associates. Gains or
losses on structural foreign currency exposures are taken to reserves.
HSBC’ s management of structural foreign currency exposures is discussed in the ‘Financial Review’ section on
page 170.
HSBC’ s structural currency exposures as at the year-end were as follows:
Net structural currency exposures
2003 2002
US$m US$m
Currency of structural exposure
Euros ............................................................................................................................................ 17,785 15,090
Sterling ......................................................................................................................................... 15,249 10,903
Hong Kong dollars ....................................................................................................................... 11,881 10,172
Swiss francs1 ................................................................................................................................ 1,548 1,133
Canadian dollars ........................................................................................................................... 1,743 1,008
Mexican pesos .............................................................................................................................. 1,536 1,998
Brazilian reais .............................................................................................................................. 1,106 605
Chinese renminbi ......................................................................................................................... 813 127
Turkish lira.................................................................................................................................... 547 441
Malaysian ringgit ......................................................................................................................... 521 537
UAE dirham ................................................................................................................................. 520 495
Saudi riyals .................................................................................................................................. 516 423
Indian rupees ................................................................................................................................ 498 300
Singapore dollars .......................................................................................................................... 440 462
Australian dollars ......................................................................................................................... 407 381
Korean won................................................................................................................................... 307 269
Taiwanese dollars.......................................................................................................................... 272 195
Maltese lira ................................................................................................................................... 254 196
Indonesia rupiah ........................................................................................................................... 180 141
Thai baht ...................................................................................................................................... 173 159
Cyprus pounds ............................................................................................................................. 138 125
Chilean pesos ............................................................................................................................... 153 226
Egyptian pounds ........................................................................................................................... 143 178
Argentine pesos2 .......................................................................................................................... (297
)
(323)
Others, less than US$100 million ................................................................................................. 570 170
Total ............................................................................................................................................. 57,003 45,411
1 This is shown after deducting borrowings taken out in Swiss francs in order to hedge the net investments of US$741 million (2002:
US$661 million).
2 The negative net investment in Argentine pesos reflects the deficiency in domestic net assets following the pesification of certain
balances formerly denominated in US dollars.