Data Dictionary
Item Number J842
OTHER ASSETS: FOREIGN CURRENCIES GROSSCall confidentiality applies to FFIEC 031/041.
| Series | Start Date | End Date | Confidential? | Reporting Forms |
|---|---|---|---|---|
| FRBSJ842 | 1989-12-31 | 9999-12-31 | Yes | FR 34 |
Data Description:
This account represents each Bank's allocated share in balances denominated in foreign currencies and includes premiums, discounts, and accrued interest on investments denominated in a foreign currency.
The New York Reserve Bank, on behalf of the Reserve Banks, holds foreign currency deposits and foreign government debt instruments denominated in foreign currencies with foreign central banks and the Bank for International Settlements (BIS). Balances result from market and off-market transactions for the purpose of stabilizing fluctuations in international flows and exchange values of various currencies and other needs specified by the FOMC. Foreign currency holdings are invested in so far as practicable, considering needs for minimum working balances. This account includes the amortization of premiums and discounts and the accrual of interest. Each Reserve Bank is allocated a share of the foreign-currency-denominated assets, realized and unrealized gains and losses, and interest on the basis of its designated share of the total portfolio. Each Reserve Bank's share of the portfolio is determined based on the ratio of its capital and surplus to the total capital and surplus of all Federal Reserve Banks, as determined at the first of each year.
Investments denominated in foreign currencies are limited, by FOMC policy, to an average maturity of no more than eighteen months (calculated using the Macaulay duration) and are accounted for at cost on a settlement-date basis, adjusted for amortization of premiums and accretion of discounts using the straight line method. These investments are guaranteed as to principal and interest by the foreign governments, or are contracts with the foreign central banks or the BIS. Foreign-currency-denominated assets of the Reserve Banks are revalued daily at current market exchange rates, with any unrealized exchange gains or losses recognized in profit and loss. Interest income is recorded on the accrual basis. Gains and losses resulting from sales of securities are determined using the weighted average cost method.