What are Cash Balance Currency Movements?

Cash balance currency movements occur when a client's default currency differs from their account currency. These movements result from foreign exchange rate fluctuations rather than actual cash inflows or outflows.

Key Factors Influencing Cash Balance Currency Movements

• Exchange Rate Changes – The difference between the default currency and the account currency impacts valuation.

• Conversion Adjustments – Currency movements reflect shifts in foreign exchange rates rather than transactions.

Example Scenario

If a client holds USD 50,000 but their account currency is AUD, any fluctuations in the AUD/USD exchange rate will affect the converted value of their holdings. For instance:

• If USD 1 = AUD 1.50, the account balance reflects AUD 75,000.

• If USD 1 = AUD 1.40, the balance adjusts to AUD 70,000, despite no cash inflow or outflow occurring.

These movements are important for investors to monitor, as they can impact portfolio valuation and exposure without actual fund transfers.

screenshot showing the cash balance currency movements on an Account needed:

The screenshot below shows the cash balance currency movements on an Account:

And using the figures above, the cash balance currency movements can be calculated as:

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