Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 454 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value The following table shows the cash flow and net investment hedging instruments which are carried on the Group’s balance sheet: Change in fair Carrying value value used as a Nominal amount Derivative basis to determine directly impacted Derivative assets liabilities Loan liabilities Nominal amount ineffectiveness by IBOR reform Hedge type Risk category £m £m £m £m £m £m As at 31 December 2022 Cash flow Interest rate risk — (1) — 140,901 (8,531) 8,968 Foreign exchange risk 549 (211) — 11,946 (484) — Inflation risk — — — 2,636 (329) — Total 549 (212) — 155,483 (9,344) 8,968 Net investment Foreign exchange risk 101 (20) (12,824) 16,786 (1,539) As at 31 December 2021 Cash flow Interest rate risk — — — 102,629 (2,812) 8,397 Foreign exchange risk 798 — — 7,592 446 — Inflation risk — (3) — 4,092 (274) — Total 798 (3) — 114,313 (2,640) 8,397 Net investment Foreign exchange risk 37 (4) (11,212) 13,635 (239) — There are 58 (2021: 36) foreign exchange risk cash flow hedges with an average foreign exchange rate of 148.00 JPY:1 GBP (2021: 137.85 JPY:1 GBP) across the relationships. The effect on the income statement and other comprehensive income of recycling amounts in respect of cash flow hedges and net investment hedges of foreign operations is set out in the following table: 2022 2021 Amount recycled Amount recycled Amount recycled from other Amount recycled from other from other comprehensive from other comprehensive comprehensive income due to sale comprehensive income due to sale income due to of investment, or income due to of investment, or hedged item cash flows no hedged item cash flows no affecting income longer expected to affecting income longer expected to statement occur statement occur Description of hedge relationship and hedged risk £m £m £m £m Cash flow hedge of interest rate risk Recycled to net interest income (320) (13) 541 2 Cash flow hedge of foreign exchange risk Recycled to other income (6) — 630 — Hedge of net investment in foreign operations Recycled to other income — (58) — (26) A detailed reconciliation of the movements of the cash flow hedging reserve and the currency translation reserve is as follows: 2022 2021 Cash flow hedging Currency Cash flow hedging Currency reserve translation reserve reserve translation reserve £m £m £m £m Balance on 1 January (853) 2,740 1,575 2,871 (20) 3,513 (7) (139) Currency translation movements Hedging gains/(losses) for the year (9,032) (1,539) (2,273) (18) Amounts reclassified in relation to cash flows affecting profit or loss 339 58 (1,173) 26 2,331 — 1,025 — Tax Balance on 31 December (7,235) 4,772 (853) 2,740