Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, AA may enter into and deal with approved contracts for hedging purposes in relation to the following:
(a) money raising by AA;
(b) investment of money by AA;
(c) commodity purchases by AA;
(d) a transaction in foreign currency.
(2) The Minister may give written guidelines to AA for the exercise of AA's power under subsection (1). AA must comply with the guidelines.
(3) Without limiting subsection (2), the guidelines may provide that:
(a) AA is not to enter into or deal with contracts of a particular kind; or
(b) AA is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters.
(4) In this section:
"approved contract" means a contract of any of the following kinds:
(a) a forward exchange rate contract;
(b) a contract with respect to currency futures;
(c) an interest rate contract;
(d) a deferred delivery contract;
(e) a contract with respect to financial futures;
(f) a contract with respect to commodity futures;
(g) a contract relating to:
(i) dealings known as currency swaps; or
(ii) dealings known as interest rate swaps; or
(iii) dealings known as commodity swaps;
(h) a contract relating to 2 or more of the dealings referred to in paragraph (g);
(i) options (including futures options);
(j) a contract of a kind approved in writing by the Minister.
(a) reducing the risk of adverse variations in:
(i) the costs of money raising by AA; or
(ii) the revenue obtainable by AA from the investment of AA's money; or
(iii) the costs of commodities purchased by AA; or
(b) maintaining the value of:
(i) investments made by AA; or
(ii) property used as security for money raising, or proposed money raising, by AA.
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