Page 185 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 183

Notes to the fiNaNcial statemeNts

43. FINANCIAL rISk MANAGEMENT PoLICIES (cont’d)
Market risk management (cont’d)

Measurement (cont’d)
The table below shows the Group’s and the Bank’s foreign currencies sensitivity based on reasonable possible movements on
the increase/(decrease) in foreign exchange (“FX”) rates that resulted to the increase/(decrease) in profit and loss:

Changes in foreign Effect on profit/loss Effect on equity
exchange rates Increase Decrease Increase Decrease
(+/-) in FX rate in FX rate in FX rate in FX rate
% RM’000 RM’000 RM’000 RM’000

2023
EUR 5 21 (21) 21 (21)
GBP 5 146 (146) 146 (146)
SGD 5 2,378 (2,378) 2,378 (2,378)
USD 10 7,568 (7,568) 7,568 (7,568)
AUD 10 1,931 (1,931) 1,931 (1,931)
12,044 (12,044) 12,044 (12,044)

Changes in foreign Effect on profit/loss Effect on equity
exchange rates Increase Decrease Increase Decrease
(+/-) in FX rate in FX rate in FX rate in FX rate
% RM’000 RM’000 RM’000 RM’000

2022
EUR 5 3,115 (3,115) 3,115 (3,115)
GBP 5 1,995 (1,995) 1,995 (1,995)
SGD 5 4,721 (4,721) 4,721 (4,721)
USD 10 44,717 (44,717) 44,717 (44,717)
AUD 10 1,266 (1,266) 1,266 (1,266)
55,814 (55,814) 55,814 (55,814)

Foreign exchange (“FX”) risk arises as a result of movements in relative currencies due to the Group’s operating business
activities and structural foreign exchange exposures from foreign investments and capital management activities.