Operational Notice: Unwind of Commonwealth Cross Currency Swap Portfolio

28 August 2003

Op Notice No. 11/2003

Following a review, the Australian Office of Financial Management (AOFM) commenced in September 2001 a phased reduction of the foreign currency exposure in the Commonwealth debt portfolio to zero. The reduction is
nearly two thirds complete.

As a result, the AOFM intends to explore the potential for early termination of remaining cross currency swaps. Consequently, the AOFM will invite counterparties to negotiate terms for the early termination of swaps. At this stage it is intended to consider early termination only in respect of swaps scheduled to mature after end-June 2004.

Early termination of swaps will only proceed if mutually acceptable terms are agreed. Otherwise the rundown will be managed, as has been the situation to date, through forward foreign exchange contracts.

Contact: Gerald Dodgson
Telephone: +61 2 6263 1141

Last updated: 5 March 2014