Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 453 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value There are 1,796 (2021: 1,782) interest rate risk fair value hedges with an average fixed rate of 1.97% (2021: 1.88%) across the relationships and 94 (2021: 96) inflation risk fair value hedges with an average rate of 0.54% (2021: 0.51%) across the relationships. Hedged items in cash flow hedges and hedges of net investments in foreign operations Balances remaining Balances remaining Change in value of in cash flow in currency Hedging gains or hedged item used Balance in cash Balance in currency hedging reserve translation reserve losses recognised Hedge as the basis for flow hedging translation reserve for which hedge for which hedge in other ineffectiveness recognising reserve for for continuing accounting is no accounting is no comprehensive recognised in the a ineffectiveness continuing hedges hedges longer applied longer applied income income statement Description of hedge relationship and hedged risk £m £m £m £m £m £m £m 2022 Cash flow hedge of: Interest rate risk Loans and advances at amortised cost 8,448 6,457 — 2,858 — 8,448 (83) Foreign exchange risk Loans and advances at amortised cost 3 (13) — — — 3 2 Debt securities classified at amortised cost 483 601 — — — 483 — Inflation risk Debt securities classified at amortised cost 362 142 — 16 — 98 33 Total cash flow hedge 9,296 7,187 — 2,874 — 9,032 (48) Hedge of net investment in foreign operations USD foreign operations 1,240 — 1,886 — — 1,240 — EUR foreign operations 265 — 141 — — 265 — Other foreign operations 34 — 242 — 23 34 — Total foreign operations 1,539 — 2,269 — 23 1,539 — 2021 Cash flow hedge of: Interest rate risk Loans and advances at amortised cost 2,465 1,536 — (492) — 2,465 (347) Foreign exchange risk Loans and advances at amortised cost (88) (16) — — — (88) 1 Debt securities classified at amortised cost (356) 123 — — — (356) 1 Inflation risk Debt securities classified at amortised cost 252 204 — (12) — 252 (22) Total cash flow hedge 2,273 1,847 — (504) — 2,273 (367) Hedge of net investment in foreign operations USD foreign operations 138 — 943 — — 138 — EUR foreign operations (117) — 100 — — (117) — Other foreign operations (3) — 44 — 186 (3) — Total foreign operations 18 — 1,087 — 186 18 — Note a Hedge ineffectiveness is recognised in net interest income.