Reserve Bank of Australia Media Release

MEDIA RELEASE - Statement by the Governor, Ian MacFarlane. Australian Office of Financial Management cross currency interest rate swaps.

It was brought to the attention of the Reserve Bank in mid 2000 that the Australian Office of Financial Management (AOFM) was planning to make early repayments of US dollar borrowings in order to keep its US dollar debt exposure at its trading benchmark of 15 per cent.

This would have involved sales of Australian dollars and purchases of US dollars at a time