19. Current financial investments
|
31 December |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Money market funds |
1,292,514 |
1,317,460 |
Treasury bills |
749,835 |
877,349 |
Term deposits |
1,543,596 |
275,000 |
Total current financial investments |
3,585,945 |
2,469,809 |
Term deposits refer to non-cancellable term deposits with a maturity exceeding three months from the acquisition date. Our portfolio of treasury bills contains only AAA rated paper, issued by Germany. Our money market funds portfolio consists of AAA short-term money market funds with a diversified and highly rated underlying portfolio managed by established fund management companies with a proven track record leading to an insignificant risk of changes in value. The funds have an important daily liquidity and can be easily converted to cash.
On 31 December 2022, our current financial investments included $809.6 million held in USD, which could generate a foreign currency exchange gain or loss in our financial results in accordance with the fluctuation of the EUR/USD exchange rate as our functional currency is EUR. This effect is embedded in the net exchange differences (exchange difference on term deposits) and in the fair value result of current financial investments (exchange difference on money market funds) in our consolidated income statement.
We refer to note 34 for more information on our current financial investments and to note 9 for more details about the fair value re-remeasurements and currency exchange gains or losses recognized in our income statement.