With a lower exchange rate, a given amount of $ funding translates into more Australian dollars to fund Australian dollar assets. Unlike in some other countries, the maturity-matched hedging of the banks' offshore funding meant there was no issue of currency mismatch. Indeed the CSAs (Credit Support Annexes) associated with those hedges actually provided a short-term source of additional funding.
Summary of the Report The economic outlook The strength of the Irish economy continues to support the stability of the financial system. Available indicators point to solid economic growth this year and, against the background of a generally favourable international environment and in the absence of any negative shocks, this relatively robust growth scenario looks likely to persist into next year.