7.1 This chapter provides feedback to responses to Chapter 13 of consultation paper (CP) 16/22 - Implementation of Basel 3.1 standards, which set out proposals to redenominate certain references to euros (EUR) and US dollars (USD) in the Basel 3.1 standards into pound sterling (GBP) for the purpose of implementation in the Prudential Regulation Authority's (PRA) rules. This chapter also sets out the PRA's near-final policy on currency redenomination following the consultation.

7.2 In CP16/22, the PRA proposed to redenominate thresholds and monetary values expressed in EUR and USD into GBP using the average daily spot exchange rate covering the 12-month period prior to 10 July 2020, rounded to two significant figures: £1 = $1.26 and £1 = €1.14. The PRA proposed to round the resulting GBP thresholds to two significant figures and to revisit thresholds and monetary values only if the average daily spot exchange rates (GBP/EUR or GBP/USD) over the 12-month period prior to the end of the most recent calendar quarter before publication of final rules differed from those set out above by 20% or more.

7.3 The PRA received five responses to its proposals on currency redenomination. The respondents generally asked for increased flexibility to use thresholds in EUR rather than GBP. Having considered the responses, and also having assessed that the spot exchange rate movement is lower than the threshold set out above, the PRA considers that the thresholds and monetary values remain appropriate at this time. Accordingly, the PRA is not making any amendments to its proposals on currency redenomination as specified in CP16/22.