Canada to collateralise cross-currency swaps
Finance ministry hopes two-way CSAs will cut costs and risks on hefty swaps flows
Canada's central bank will post collateral to its derivatives counterparties for the first time, under new agreements currently being put in place by the country's finance ministry. The two-way contracts are "expected to provide modest savings to the government, while reducing counterparty exposure," says a spokesperson for Department of Finance Canada.
The decision places Canada in a small but
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