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I would like to understand the convention for discount rates fro cross currency swaps.

It seems to be market convention (Australia) to discount collateralize positions with OIS and uncollateralized positions with the swap rate (libor).

I fully understand that a collateralised position should be discounted with OIS, but I struggle to understand libor for an uncollateralised position. My understanding was that we should stick to a risk free rate - hence OIS and then adjust separately for CVA/DVA and FVA?

Thanks,

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