Management tecniques of currency risk

Methods of currency risk management

Currency risk management is setting limits on open currency positions (OCP), complying the OCP limits and regulating OCP within the limits. For the currency risk management purposes are set the following values of OCP limits for VTB Bank (Azerbaijan):

  • OCP limits for each currency – 10 % of regulatory capital;
  • Total OCP limit – 20 % of regulatory capital.

Control and responsibility for complying the OCP limits are entrusted to the Head of Treasury of OJSC VTB Bank (Azerbaijan).