A dealer in foreign exchange has the following position in Swiss Francs on 31 st January,2018:

(Swiss Francs)

Balance in the Nostro A/c Credit 1,00,000

Opening Position Overbought 50,000

Purchased a bill on Zurich 70,000

Sold forward TT 49,000

Forward purchase contract cancelled 41,000

Remitted by TT 75,000

Draft on Zurich cancelled 40,000

Examine what steps would the dealer take, if he is required to maintain a credit balance of Swiss Francs 30,000 in the Nostro A/c and keep as overbought position on Swiss Francs.

Answer rating: 100% (QA)

To maintain a credit balance of Swiss Francs 30000 in the Nostro Ac and keep an overbought position ... View the full answer