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## Cross currency swap contracts 

Under cross currency swap contracts, the consolidated entity has agreed to exchange specified foreign currency loan principal and interest amounts at agreed future dates at fixed exchange rates. Such contracts enable the consolidated entity to eliminate the risk of movements in foreign exchange rates related to foreign currency denominated borrowings. 

The fair value of cross currency swaps at 30 June 2011 was a liability of $85.9 million (2010: $nil), of which $22.4 million is in a cash flow hedge relationship and $63.5 million is in a fair value hedge relationship. 

The following table details the cross currency swap contracts outstanding at the end of the reporting period: 

<img src='content_image/250455.jpg'>

The following table details the movements in the hedging reserve from forward foreign exchange contracts and cross currency swap contracts: 

<img src='content_image/250454.jpg'>

## Foreign currency sensitivity 

The following table details the sensitivity to a 10% increase or decrease in the Australian dollar against the relevant foreign currencies. A sensitivity of 10% has been used as this is considered reasonable given the current level of exchange rates and the volatility observed both on a historical basis and market expectations for future movements. 

The sensitivity analysis includes only outstanding foreign currency denominated financial instruments and adjusts their translation at the end of the reporting period for a 10% change in foreign currency rates. 

At the end of the reporting period, if the Australian dollar had been 10% higher or lower and all other variables were held constant, the consolidated entity’s profit after tax and other comprehensive income would have been affected as follows: 

<img src='content_image/250453.jpg'>

The movement in other comprehensive income is due to an increase/decrease in the fair value of forward foreign exchange contracts designated as cash flow hedges. 

