DERIVATIVE FINANCIAL INSTRUMENTS

The partnership's activities expose it to a variety of financial risks, including market risk (currency risk, interest rate risk, commodity risk and other price risks), credit risk and liquidity risk. The partnership and its subsidiaries selectively use derivative financial instruments principally to manage these risks.

The aggregate notional amounts of the partnership's derivative positions as at December 31, 2019 and 2018 were as follows:



(US$ MILLIONS)	2019		2018
Foreign exchange contracts	$	6,261	$	1,652
Cross currency swaps	374		15
Interest rate derivatives	13,058		8,217
Equity derivatives	47		31
	$	19,740	$	9,915



Commodity instruments	2019	2018
Oil based fuel (Cbm - millions)	5.39	6.17
Natural gas (Mcf - millions)	11.74	8.22
Lead (metric tons)	20,420	—
Tin (metric tons)	2,548	—
Polypropylene (metric tons)	31,120	—

Foreign exchange contracts

The following table presents the notional amounts and average exchange rates for foreign exchange contracts held by the partnership as at December 31, 2019 and 2018. The notional amounts as at December 31, 2019 and comparative year 2018 include both buy and sell contracts.



(US$ MILLIONS)	Notional amount (U.S. Dollars)					Average exchange rate (USD to FC)
	2019		2018			2019	2018
Foreign exchange contracts
Australian dollars	$	682	$	184		1.45	1.33
Brazilian real	89		35			4.06	3.99
British pounds	650		131			0.77	0.78
Canadian dollars	2,037		940			1.30	1.32
Chinese yuan	1		(15		)	6.97	7.16
European Union euros	782		44			0.88	0.85
Indian rupees	189		188			73.33	74.09
Japanese yen	14		4			104.19	110.14
Mexican pesos	10		(5		)	18.90	19.75
Norwegian krone	52		53			8.87	7.96
South Africa rand	3		3			14.05	14.48
Swedish krona	1,578		94			9.10	7.87
Swiss franc	50		(4		)	0.97	1.00
Colombian peso	49		—			3,359.91	—
South Korean won	68		—			1,265.03	—
Peruvian dollar	7		—			3.41	—
	$	6,261	$	1,652

Other Information Regarding Derivative Financial Instruments

The following table presents the notional amounts underlying the partnership's derivative instruments by term to maturity as at December 31, 2019 and the comparative notional amounts as at December 31, 2018, for both derivatives that are classified as fair value through profit of loss and derivatives that qualify for hedge accounting:



	2019								2018
(US$ MILLIONS)	< 1 year		1 to 5 years		>5 years		Total notional amount		Total notional amount
Fair value through profit or loss
Foreign exchange contracts	$	2,478	$	171	$	70	$	2,719	$	315
Cross currency swaps	160		126		87		373		15
Interest rate derivatives	77		5,798		431		6,306		1,467
Equity derivatives	24		23		—		47		31
Elected for hedge accounting
Foreign exchange contracts	1,913		1,629		—		3,542		1,337
Interest rate derivatives	—		6,753		—		6,753		1,500
Option contracts	—		—		—		—		5,250
	$	4,652	$	14,500	$	588	$	19,740	$	9,915

The partnership has early adopted the IBOR amendments to IFRS 9 effective October 1, 2019 as described in Note 2. This has been applied to the interest rate derivatives elected for hedge accounting. This had no impact as the IBOR amendments enable hedge accounting to continue for hedging relationships previously designated.