71 Foreign currency sensitivity The Group is mainly exposed to the currency of assets and liabilities to US dollar. The following tables demonstrate the sensitivity of the Group’s loss before tax to a reasonably possible change in US dollar and Euro exchange rates, with all other variables held constant. The impact on the Group’s loss before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. 10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. As at 31 December 2023 and 2022, the Group’s exposure to foreign currency changes for all other currencies is not material. 2023 2022 Currency Increase/ decrease Effect on loss before tax Increase/ decrease Effect on loss before tax (%) (Million Baht) (%) (Million Baht) US dollar 10 189 10 274 Euro 10 5 10 1 Yen 10 1 10 1 Interest rate risk The Group’s exposure to interest rate risk relates primarily to its deposits with bank, shortterm and long-term loans, debentures and short-term and long-term borrowings. Most of the Group’s financial assets and liabilities bear floating interest rates or fixed interest rates which are close to the market rate. The Group manages its interest rate risk by maintaining an appropriate mix between fixed and floating rate borrowings, and enters into interest rate swaps, in which it agrees to exchange, at specified intervals, between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite; ensuring the most costeffective hedging strategies are applied. As at 31 December 2023 and 2022, the Group had the outstanding balance of significant financial assets and liabilities which are classified by type of interest rate are summarised in the table below, with those financial assets and liabilities that carry fixed interest rates further classified based on the maturity date, or the repricing date if this occurs before the maturity date. 364 IRPC Public Company Limited Notes to the Consolidate Financial Statements
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