procedures for dealing with a breach of limits. The Treasury Policy should also linkage to authorities and responsibilities set out in the DHB’s delegation policy liquidity management investment management key banking relationships Treasury monitoring and reporting (daily, weekly, monthly, to the Board). DHBs should review Treasury Policy at least annually and: assess the impact of Treasury transactions made during the year (eg, how the result differed from an unhedged position, what was the cost of any hedging) evaluate which risk exposures may be significant in the coming year and out-years recommend any modifications required to the Board for approval. Derivative transactions (See ss and , and New Zealand Gazette, 21/7/2005, no. 110, p. 2644.) DHBs have Ministerial authority to enter into foreign exchange and interest rate derivative transactions on the conditions specified in their Crown Funding Agreement (New Zealand Gazette, 21/7/2005, No. 110). Regulation 15 permits Crown entities (including DHBs) to enter into the following derivative transactions: a foreign transaction with a registered bank or registered building society that satisfies the credit-rating test stipulated in regulation 7(1), or a bank outside New Zealand that satisfies the credit-rating test stipulated in regulation 8(1)(b), for the purpose of: i procuring foreign exchange (including negotiable instruments and other documentary transactions) for use by Crown entity members, officials, or employees while in the country of that foreign currency or while en route to that country ii procuring foreign exchange in order to discharge a liability arising under any of the classes of contract or instrument referred to in regulation 14 iii procuring foreign exchange in order to: 1. deposit funds into a bank account 2. invest in debt securities 3. repay borrowing 4. pay a guarantee or indemnity. a futures contract having the sole purpose of covering any foreign exchange transaction authorised by this regulation
procedures for dealing with a breach of limits. The Treasury Policy should also linkage to authorities and responsibilities set out in the DHB’s delegation policy liquidity management investment management key banking relationships Treasury monitoring and reporting (daily, weekly, monthly, to the Board). DHBs should review Treasury Policy at least annually and: assess the impact of Treasury transactions made during the year (eg, how the result differed from an unhedged position, what was the cost of any hedging) evaluate which risk exposures may be significant in the coming year and out-years recommend any modifications required to the Board for approval. Derivative transactions (See ss and , and New Zealand Gazette, 21/7/2005, no. 110, p. 2644.) DHBs have Ministerial authority to enter into foreign exchange and interest rate derivative transactions on the conditions specified in their Crown Funding Agreement (New Zealand Gazette, 21/7/2005, No. 110). Regulation 15 permits Crown entities (including DHBs) to enter into the following derivative transactions: a foreign transaction with a registered bank or registered building society that satisfies the credit-rating test stipulated in regulation 7(1), or a bank outside New Zealand that satisfies the credit-rating test stipulated in regulation 8(1)(b), for the purpose of: i procuring foreign exchange (including negotiable instruments and other documentary transactions) for use by Crown entity members, officials, or employees while in the country of that foreign currency or while en route to that country ii procuring foreign exchange in order to discharge a liability arising under any of the classes of contract or instrument referred to in regulation 14 iii procuring foreign exchange in order to: 1. deposit funds into a bank account 2. invest in debt securities 3. repay borrowing 4. pay a guarantee or indemnity. a futures contract having the sole purpose of covering any foreign exchange transaction authorised by this regulation
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