BizTerm Definition
Reading and funded in local currency
Full Definition

In finance this normally means the currency of the loan (or off balance sheet exposure) and the currency of the funding are all in the national currency national currency of the country of domicile of the debtor/customer/counterparty. This reflects the absence of risks relating to availability and transfer of foreign exchange on such claims. A global approach is acceptable, meaning that if the total funding position in the currency at least equals the totals of the credit(s) to the central government/central bank, the condition is assumed to be met. Also referred to as LCLF (local currency, local funds). Note: In case of collateral the principle of local currency is extended to the currency of the collateral.

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