VAKIFBANK
2015 ANNUAL REPORT
154
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI
UNCONSOLIDATED FINANCIAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
V. FOREIGN CURRENCY EXCHANCE RISK
Foreign exchange risk that the Bank exposed to, estimation of effects of exposures, and the limits set by the Board of Directors of the Bank for
the positions being monitored on a daily basis
The Standard Method which is also used in the legal reporting is used in measuring the currency risk of the Bank.
All of the foreign currency assets and liabilities and the forward foreign-currency transactions are taken into consideration in calculating the capital
obligation for the currency risk. The net long and short positions are calculated in Turkish Lira equivalent of the each currency. The position with the
biggest absolute value is determined as the base amount for the capital obligation and the capital obligation is calculated at that amount.
The magnitude of hedging foreign currency debt instruments and net investment in foreign operations by using derivatives
As at 31 December 2015 and 31 December 2014 the Bank does not have derivative financial instruments held for risk management.
Foreign exchange risk management policy
Risk policy of the Bank is based on the transactions within the limits and keeping the currency position well-balanced.
In the light of the national legislations and international applications, the Bank has established a foreign currency risk management policy that enables
the Bank to take position between lower and upper limits determined in respect of the current equity profile. Speculative position is not held by the
Bank.
The Bank’s effective exchange rates at the date of balance sheet and for the last five working days of the period announced by the Bank in TL are as
follows:
US Dollar
Euro
The Bank’s foreign currency purchase rate at the balance sheet date
2.9100
3.1661
Foreign currency purchase rates for the days before balance sheet date;
Day 1
2.8600
3.1263
Day 2
2.8500
3.1259
Day 3
2.8600
3.1368
Day 4
2.8500
3.1259
Day 5
2.8600
3.1260
US Dollar
Euro
Last 30-days arithmetical average rate
2.8527
3.0912
