4.15 Net Spot Position
The net spot position is the difference between foreign currency assets and the liabilities in the balance sheet. This should include all accrued income/expenses.
The open position must first be measured separately for each foreign currency.
4.16 Net Forward Position:
This represents the net of all amounts to be received less all amounts to be paid in the future as a result of foreign exchange transactions. These transactions are recorded as off-balance sheet items in the bank’s books.
The open position must first be measured separately for each foreign currency.