TOWER RESOURCES PLC N OTES TO T H E  FINAN C IA L ST A TE M E N TS F OR T H E  Y E A R E ND E D 31 D ECE MB ER  2010  13 .  Financial instruments Interest rate risk  Financial liabilities  Net fair value  C urrency  R isk Financial risk management  At  31  December  2 0 1 0, the Group had no debt.  The net fair value of financial assets and financial liabilities approximates to their carrying amount as  disclosed in the balance sheet and in the related notes.  The functional currency for the Group's operating activities, including drilling activities, is the US Dollar. The Group's objective in managing currency exposures arising from its net investment overseas is to maintain  a low level of borrowings. The Group has not hedged against currency depreciation but continues to keep the  matter under review.  The Directors recognise that this is an area in which they may need to develop specific policies should the  Group become exposed to further financial risks as the business develops.  The effective weighted average interest rate received during the year was approximately  1 .5%.  At  31  December  2 0 1 0 the Group had US Dollar cash deposits of $4 1 5,4 21 , Pound Sterling cash deposits of a  US Dollar equivalent of $788,8 13 , Euro cash deposits of a US Dollar equivalent of $459, and Uganda  Shillings cash deposits of a US Dollar equivalent of $8,7 3 5. The Company’s exposure to interest rate risk,  which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates  on classes of financial assets and financial liabilities, was as follows:  12 .  T rade and other payables  11 .  T rade and other receivables  31 December 2010  31 December 2009  Group Company Group Company $ $ $ $ Other receivables 2 74,947 5 2 , 31 9  1 ,0 23 ,7 3 7 545, 32 8  31 December 2010  31 December 2009  Group Company Group Company $ $ $ $ Payables and accruals  5 31 , 222 2 48,074 578,6 3 7  1 45,956  31 December 20010 31 December 2009  Floating  Non - Interest  Floating  Non - Interest  interest rate  Bearing   interest rate  Bearing  $ $ $ $ Financial assets: Cash at bank  887, 33 4  32 6,094 7,807, 3 49 774, 12 5  32