Notes to the accounts

Notes to the accounts list

31 Currency exposures

Currency rate risk emanates from the Group’s international operations. The policy regarding currency risk is set out in the Operating and financial review. Currency swaps are used as part of applying that policy.

The Group’s structural currency exposures at 31 March 2005 were as follows:

Currency	Variable rate loan investments 2005 £m	Fixed rate loan investments 2005 £m	Other investment assets 2005 £m	Other net assets before borrowings 2005 £m	Short-term variable rate borrowings 2005 £m	Other variable rate borrowings 2005 £m	Fixed rate borrowings 2005 £m	Net assets 2005 £m
Sterling	198	478	1,360	852	717	215	(1,196)	2,624
Euro	75	291	930	115	(448)	93	(583)	473
US dollar	13	83	396	32	(146)	–	–	378
Swiss franc	–	50	93	2	(41)	–	–	104
Swedish krona	1	89	233	7	(126)	(151)	–	53
Other	–	15	48	1	(53)	–	(6)	5
Subtotal	89	528	1,700	157	(814)	(58)	(589)	1,013
Total	287	1,006	3,060	1,009	(97)	157	(1,785)	3,637
Currency	Variable rate loan investments 2004 (as restated)* £m	Fixed rate loan investments 2004 (as restated)* £m	Other investment assets 2004 (as restated)* £m	Other net assets before borrowings 2004 (as restated)* £m	Short-term variable rate borrowings 2004 (as restated)* £m	Other variable rate borrowings 2004 (as restated)* £m	Fixed rate borrowings 2004 (as restated)* £m	Net assets 2004 (as restated)* £m
Sterling	341	429	1,622	556	60	223	(1,132)	2,099
Euro	102	256	862	28	72	60	(595)	785
US dollar	32	47	268	7	(120)	–	–	234
Swiss franc	–	41	68	3	(21)	–	–	91
Swedish krona	1	52	185	26	(133)	(144)	–	(13)
Other	–	11	41	7	(12)	–	(13)	34
Subtotal	135	407	1,424	71	(214)	(84)	(608)	1,131
Total	476	836	3,046	627	(154)	139	(1,740)	3,230
* As restated to reflect the adoption of FRS 17 – Retirement Benefits and UITF 38 – Accounting for ESOP Trusts. See Basis of preparation.