10. Foreign currency
(a) Principal exchange rates used
| Average | Closing | |||||
| 2022 | 2021 | 2022 | 2021 | 2020 | ||
| US dollar : Brazilian real | 5.34 | 5.41 | 4.78 | 5.74 | 5.20 | |
| Pound sterling : US dollar | 1.37 | 1.31 | 1.31 | 1.38 | 1.24 | |
| Euro : US dollar | 1.16 | 1.17 | 1.11 | 1.17 | 1.09 | |
| US dollar : Colombian peso | 3,834 | 3,699 | 3,757 | 3,720 | 4,052 | |
| US dollar : South African rand | 14.85 | 16.36 | 14.56 | 14.76 | 17.81 | |
(b) Foreign exchange risk
(i) Brazilian real intra-Group funding
A Group company whose functional currency is not the Brazilian real provides Brazilian real intra-Group funding to Serasa S.A.. Foreign exchange gains or losses on this funding are recognised in the Group income statement.
As a result of the strengthening of 17% in the Brazilian real against the US dollar in the year ended 31 March 2022, a gain of US$43m has been recognised within financing fair value remeasurements (2021: US$16m charge due to 10% weakening) (note 15(c)).
The Group is similarly exposed to the impact of the Brazilian real strengthening or weakening against the US dollar in the future. A movement of 16% would result in a US$35m impact on profit before tax. There is no effect on total equity as a result of this exposure, since it arises on intra-Group funding and there would be a related equal but opposite foreign exchange movement recognised in the translation reserve within equity.
(ii) Other exposures
On the basis of the profile of foreign exchange exposures, and an assessment of reasonably possible changes in such exposures, there are no other material sensitivities to foreign exchange risk at the balance sheet dates. In making these assessments, actual data on movements in the principal currencies over the most recent three-year period has been considered together with exposures at the balance sheet dates. This methodology has been applied consistently.