KMBNFM04 Foreign Exchange and Risk Management

Unit 1 Foreign Exchange {Book}
Foreign Exchange and Foreign Trade VIEW VIEW
Exchange Rate VIEW VIEW
Foreign Exchange as stock VIEW
Balance of Payments VIEW
Balance of Payments accounting VIEW
Components of Balance of Payments; Current Account, Capital Account, Official Reserve Accounts, Debit and Credits Entries VIEW
International Exchange Systems VIEW VIEW
Fixed and Floating Exchange rate system VIEW
Exchange Rate System prior to IMF: Gold currency standard, Gold bullion standard, Gold exchange standard VIEW
Exchange Rate System under IMF: Bretton woods system, The Smithsonian Agreement, The Flexible Exchange Rate Regime VIEW
Unit 2 {Book}
Convertibility of rupee; Current account convertibility, Capital Account Convertibility VIEW
Theories of Foreign exchange rate:
Purchasing power parity (PPP) VIEW
International Fisher Effect (IFE) VIEW
Interest Rate Parity (IRP) VIEW
Administration of Foreign Exchange; Authorized persons, Authorized dealers VIEW
Authorized Money Changers VIEW
Foreign Currency Accounts: Nostro Account, Vostro Account and Loro Account in foreign transactions. VIEW
Unit 3 {Book}
Foreign Exchange Transactions; Purchase and Sale transactions VIEW
Exchange quotations: Direct and Indirect Quotations, Two way Quotation VIEW
Spot and Forward Transactions: VIEW
Forward margin, Factors Determining forward margin VIEW
Merchant Rates: Basis of Merchant Rates, Types of buying and Selling rates, Ready rates based on cross rates VIEW
Forward exchange contract: Fixed and option forward contracts, Calculation of fixed and option forward rates; Inter Bank Deals VIEW
Execution of forward Contracts VIEW
Unit 4 Exchange Dealings: {Book}
Dealing position: Exchange position, Cash Position VIEW
Accounting and Reporting: Mirror account, Value date, Exchange profit and loss, R returns VIEW
Forex Risk Management: Risk in Forex Dealing, Measure of Value at Risk VIEW
Foreign Exchange markets VIEW
Settlement of Transactions: Swift, Chips, Chaps, Fed wire VIEW
Unit 5 {Book}
Exchange Risk: Exchange exposure and exchange risk VIEW
Transaction Exposure, Managing Transaction exposure VIEW
External Hedge VIEW
Forward contract hedge, Money market hedge, hedging with futures and options VIEW
Internal Hedge VIEW
Translation exposure, Methods of translation, managing translation exposure VIEW
Economic exposure, Managing economic exposure VIEW
Interest rate risk VIEW

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