Central Banking

Foreign exchange settlement risk

The Basel Committee on Banking Supervision just issued a revised version ofits guidance for supervisors on managing the settlement risk arising fromforeign exchange transactions. The guidance was elaborated in closecooperation with the Basel Committee on Payment and Settlement Systems (CPSS), in particular the CPSS subgroup on foreign exchange settlement risk. A draft document had been available for publiccomment since June 1999, and the final document is now also available fromthe BIS

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