XP(US:XP)2021-04-29 20:01Foreign Currency Exposure - As of December 31, 2020, the company had foreign currency exposure with equity interests amounting to US$46.5 million in XP Holding International LLC, US$0.8 million in XP Advisors Inc., and GBP2.3 million in XP Holding UK Ltd[833]. - The company conducted a sensitivity analysis revealing potential losses of R$615 million under Scenario III for foreign currency exchange rates as of December 31, 2020[831]. Indebtedness and Interest Rates - The company has no indebtedness denominated in U.S. dollars as of December 31, 2020, following the settlement of R$778 million in U.S. dollar debt in August 2018[835]. - The company is primarily exposed to floating interest rate debt, which constituted substantially all of its total indebtedness as of December 31, 2020[837]. Risk Management Policies - The company employs a risk management policy to control market risks, including foreign exchange variation, interest rates, and share prices, to optimize returns[846]. - The company utilizes the Maps Luna program to measure and control market exposure risk, ensuring compliance with Central Bank regulations[847]. - The company has implemented a liquidity risk management policy to maintain sufficient cash and securities to meet obligations[839]. - Credit risk management includes using client investments as collateral to mitigate potential losses, ensuring high credit quality in operations[843]. - The company has established operational limits for treasury operations to manage asset risk and ensure low volatility in portfolios[848]. - Operating risk management focuses on avoiding financial losses and reputational damage through comprehensive internal controls and contingency plans[849].