HSBC 2005 Annual Report Download - page 319

317
Net structural foreign exchange exposures
2005 2004
US$m US$m
Currency of structural exposure
Euros .............................................................................................................................................. 18,821 19,054
Sterling ........................................................................................................................................... 15,615 17,749
Chinese renminbi ........................................................................................................................... 5,135 3,105
Mexican pesos ................................................................................................................................ 3,777 2,907
Hong Kong dollars1 ........................................................................................................................ 2,945 12,693
Canadian dollars ............................................................................................................................. 2,926 2,250
Brazilian reais ................................................................................................................................. 2,174 1,498
Swiss francs .................................................................................................................................... 1,957 1,921
Indian rupees .................................................................................................................................. 1,182 745
UAE dirhams .................................................................................................................................. 1,111 760
Turkish lira ..................................................................................................................................... 919 705
Malaysian ringgit ........................................................................................................................... 705 605
Australian dollars ........................................................................................................................... 609 703
Korean won .................................................................................................................................... 506 420
Saudi riyals2 ................................................................................................................................... 347 107
Singapore dollars ............................................................................................................................ 334 401
Taiwanese dollars ........................................................................................................................... 298 326
Japanese yen ................................................................................................................................... 252 225
Maltese lira ..................................................................................................................................... 250 278
Egyptian pounds ............................................................................................................................. 234 181
Thai baht ........................................................................................................................................ 234 203
Indonesia rupiah ............................................................................................................................. 188 155
Chilean pesos ................................................................................................................................. 187 175
Philippine pesos ............................................................................................................................. 176 86
New Zealand dollars ....................................................................................................................... 141 8
South African rand ......................................................................................................................... 106 65
Argentine pesos3 ............................................................................................................................. (85) (76)
Others, each less than US$100 million ........................................................................................... 787 587
Total ............................................................................................................................................... 61,831 67,836
1The reduction in the net structural foreign exchange exposure to Hong Kong dollars relates principally to the reclassification of
preference share capital from equity to financial liability with effect from 1 January 2005, on application of IAS32.
2After deducting sales of Saudi riyals amounting to US$480 million (2004: US$480 million) in order to manage the foreign exchange
risk of the investments.
3The negative net investment in Argentine pesos reflects the deficiency in domestic net assets following the pesification of certain
balances formerly denominated in US dollars.
35 Assets charged as security for liabilities and collateral accepted as security for assets
Financial assets pledged to secure liabilities are as follows:
Assets pledged at
31 December
2005 2004
US$m US$m
Treasury bills and other eligible securities ..................................................................................... 7,607 3,152
Loans and advances to banks ......................................................................................................... 1,310 –
Loans and advances to customers ................................................................................................... 36,590 34,992
Debt securities ................................................................................................................................ 89,973 53,819
Equity shares .................................................................................................................................. 5,137 –
Other .............................................................................................................................................. 537 1,438
141,154 93,401
These transactions are conducted under terms that are usual and customary to standard lending, and stock borrowing
and lending activities.
Collateral accepted as security for assets
The fair value of financial assets accepted as collateral that HSBC is permitted to sell or repledge in the absence of
default is US$138,303 million.