CTA accounts and their impact on forex prices
Here we highlight CTA accounts
CTA (Cumulative Translation Adjustment) accounts can be a driver of forex prices so we need to know what they are
On a balance sheet a CTA is where a company reports fluctuations in exchange rates that have occurred since it acquired an asset in a foreign currency. CTA accounts exist because FASB 52 accounting regulation requires companies to report assets held in foreign currencies to be reported at their current exchange rates.
See? Learn something new every day here ! I’ll get it added to the jargon box.