The Reserve Bank’s net open position in foreign currency - the amount to which the Bank is exposed to exchange rate risk - has also fallen to less than $ billion at present, against a peak value of more than $ billion some four years ago. Accordingly, perceived weaknesses of the past have been removed.
A $ billion open position in a $ billion GDP economy which exports $ billion per annum is quite well-contained. CPIX inflation over twelve months (i.e.