Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 458

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 458
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 2023: £1,168.3bn). The increase in exposure was largely driven by an increase in derivatives in Global Markets, increased investment in debt securities and the acquisition of Tesco Bank.

| Strategy                                                 | Shareholderinformation | Climate andsustainability report | Governance |     | Riskreview | Financialreview | Financialstatements |     | Barclays PLC 2024Annual Reporton Form 20-F | 300 |
| Risk performance - Treasury and Capital risk (continued) |                        |                                  |            |     |            |                 |                     |     |                                            |     |

Foreign exchange risk (audited)

The Group is exposed to two sources of foreign exchange risk.

a ) Transactional foreign currency exposure

Transactional foreign currency exposures represent exposure on banking assets and liabilities, denominated in currencies other than

the functional currency of the transacting entity.

The Group’s risk management policies are designed to prevent the holding of significant open positions in foreign currencies outside

the trading portfolio managed by B arclays Investment bank which is monitored through VaR.

Banking book transactional foreign exchange risk outside of Barclays Investment bank is monitored on a daily basis by the market risk

function and minimised by the businesses.

b ) Translational foreign exchange exposure

The Group’s investments in overseas subsidiaries and branches create capital resources denominated in foreign currencies, principally

USD and EUR. Changes in the GBP value of the net investments due to foreign currency movements are captured in the currency

translation reserve, resulting in a movement in CET1 capital.

The Group’s strategy is to minimise the volatility of the capital ratios caused by foreign exchange movements, by matching the CET1

capital movements to the revaluation of the Group’s foreign currency RWA exposures.

| Functional currency of operations (audited) |                                 |                                          |                                           |                                                 |                         |                                       |
|                                             | Foreign currencynet investments | Borrowings whichhedge the netinvestments | Derivatives whichhedge the netinvestments | Structuralcurrencyexposures pre-economic hedges | Other equityInstruments | Remainingstructural currencyexposures |
|                                             |                              £m |                                       £m |                                        £m |                                              £m |                      £m |                                    £m |
| 31 December 2024                            |                                 |                                          |                                           |                                                 |                         |                                       |
| USD                                         |                          28,012 |                                   -6,243 |                                    -2,230 |                                          19,539 |                  -5,846 |                                13,693 |