(38)The calculation of the capital requirement for currency risk for a group should reflect the specific economic situation of that group, in particular in cases where the insurance or reinsurance activities are denominated in different currencies. For that reason, participating insurance and reinsurance undertakings, insurance holding companies or mixed financial holding companies should be able to select a reference currency other than the one used for the preparation of the consolidated accounts where the currency risk in the consolidated group Solvency Capital Requirement is calculated on the basis of the standard formula. That choice should be based on objective criteria, such as the currency in which a material amount of the group's technical provisions or own funds are denominated.