Introduction to FX

  • The foreign exchange market in a nutshell
  • Organizational structure of the forex market
  • Monetary policy and FX
  • Foreign Exchange Regime(fixed, Flexible etc)
  • Foreign exchange and bank deposits
  • International spot rate quotation conventions
  • Two-way spot prices
  • Spread
  • Cross rates
  • Foreign exchange risk: appreciation and depreciation
  • Spot and derivative forex markets
  • Why exchange rates are important

Determination of Foreign Exchange Rate

  • Interest Rate Parity
  • Purchasing Power Parity
  • The Fisher Effect
  • Balance of Payments Approach
  • Monetary Approach
  • Portfolio Balance Approach
  • Forecasting Exchange Rates

Derivatives: forwards

  • Introduction
  • Derivatives markets
  • Definition of a forward
  • Types of forwards
  • Outright forward foreign exchange contracts: functions and pricing
  • Forward exchange market

Derivatives: futures, options & swaps

  • Introduction
  • Currency futures
  • Currency options
  • Currency swaps

Currency Risk & Management

  • Type of currency Risk
    • Economy Risk
    • Transactional Risk
    • Translational Risk
  • Hedging with Currency Futures
  • Speculation with Currency Futures

Participants

  • Introduction
  • Authorized dealer banks
  • Foreign exchange brokers
  • Foreign banks
  • Central bank

IFRS and Foreign Exchange

Foreign Exchange Implication

  • Creditor and Debtors
  • Importer and Exporter
  • How are foreign exchange rates affected by commodity price fluctuations
  • Entrepreneurs and Innovation
  • The common Man
  • E-commerce
  • Effect on Money Stock; Money Market Liquidity

 

Industry and Currency fluctuation

  • Telecom and ICT
  • Agriculture
  • Oil and Gas
  • Financial Service
  • Healthcare
  • Education and Knowledge Sector
  • The real Sector