New South Wales Treasury Corporation (TCorp)

Updated: 12 Nov 2025
TCorp is the central borrowing authority and investment manager for NSW.


TCorp provides exclusive investment management, financial solutions, and advisory services to the NSW Government and its agencies.

Managing financial risk

TCorp collaborates with NSW Government entities by offering expertise in financial risk management to deliver long-term financial impact. Expertise includes managing risk related to:

  • foreign exchange
  • interest rates
  • commodity hedging.

Financial risk solutions

As the financial services partner for the NSW public sector, TCorp offers:

  • access to financial markets
  • assistance to minimise budget volatility and execution costs
  • mitigation advice about hidden supplier foreign exchange margins.

The Financial Risk Solutions (FRS) team assists agencies in managing foreign exchange, interest rate, and commodity risks according to the NSW Treasury Financial Risk Management Policy TPP21-14.

Foreign exchange (FX) risk management

Foreign exchange risk is the most common financial market risk for NSW government procurement contracts for overseas goods or services. These procurement costs must be converted to Australian dollars by the agency or vendor.

When working with your vendor, the guidance is to request both foreign currency and Australian Dollar pricing. While a vendor might have local offices, the currency that is local to them might be in another currency if they originate from overseas.

Requesting both foreign currency and Australian Dollar pricing from a vendor, can help you determine if pricing is beneficial in one currency versus another as well as identifying if financial market risk exists.

3 types of financial risk

TCorp can help identify and manage 3 types of FX risk.

Contracted: Occurs with signed contracts priced in foreign currency (for example, USD, Euro, Renminbi), exposing agencies to currency value fluctuations over the contract. Agencies must handle conversion rates when paying invoices in foreign currency.

Embedded: Arises in contracts priced in Australian Dollars where the underlying foreign currency costs are converted by the supplier. Risk occurs when goods or services originate from overseas and the vendor has not provided a fixed price.

Contingent: Exists in unsigned contracts with internal budget approval but priced in a foreign currency.

NSW government agencies can be negatively impacted if vendors manage the foreign exchange risk rather than agencies for the following reasons:

  • Vendors can fix the Australian Dollar price at an unfavourable rate to manage FX risk.
  • Vendors adjust the Australian Dollar price using rate reset clauses and pass FX risk to the agency.

The Financial Risk Solutions (FRS) team can provide free, no-obligation, assistance in price comparison and FX hedging.

Checklist for identifying FX risks

TCorp can help if you answer 'yes' to any of the following questions:

  • Do goods or services or licenses originate from offshore?
  • Does the cost of goods and services change due to market factors? Market risks can include FX, commodities and inflation.
  • Is the manufacturer located offshore? Reseller contracts can obscure FX risk
  • Is the parent of a domestic vendor located offshore? Local subsidiaries can obscure FX risk
  • Has a foreign currency (non-AUD) price invoice been received?

TCorp resources