Foreign Exchange Treasury Management and Operations

Foreign Exchange Treasury Management and Operations

Understanding forex can be tricky! But once you understand the foreign exchange arithmetic, it becomes so interesting!

This course attempts to explain how banks deal in forex in simple language, keeping it crisp and to the point.

After completing this course you will know how forex rates are decided, how banks deal with their foreign exchange customers, and how they handle their forex exposures using cover operations. Understanding these concepts is vital to secure a certificate in any forex dealing and treasury examination.

You will learn -

Overview of the Foreign Exchange Market

What is foreign exchange?

Participants and Segments of the Forex market

Currencies and Quotations

Major Currencies and ISO Codes

How Currencies are Quoted - Direct and Indirect Quotations

Two way Quotations - Bid and Ask Quotes

What is Pip, Big Figure, Small Figure?

How abbreviations work in the Offer side of a Two Way Quote?

Hierarchy of Currencies - Which will be the Base Currency?

Cross Rates

Calculation of Cash, Tom, Spot, Forward Dates

Where one currency is USD

In cross rates

Spot Merchant Deals and Corresponding Cover Operations

Understanding Exchange Position and Fund Position of a Bank

Understanding Spot Buy and Sell Transactions and Corresponding Cover Operations

Calculation of Spot Rate - USD one of the Currencies

Calculation of Cross Spot Rate

Forward and Cash Merchant Deals

Forward Contracts and Factors affecting Forward Differential

How are Swap Points Denoted?

Calculation of Forward Rates

Calculation of Cross Forward Rates

Calculation of Cash Rates

Cover Operations of Forward and Cash deals - Forex Swap

What is a Forex Swap?

Forex Swap for Forward Settlements

Forex Swap for Cash Settlements

Regulation of Treasury Operations and Market Practices

Code of Conduct

Market Terminologies and Sample Deal Conversation

This course is meant for -

1. Aspiring forex dealers of banks

2. Students of Forex and Treasury certificate examinations

3. Anyone interested in learning about forex rates

How Banks Deal in Foreign Exchange | Forex Rate Calculation by Banks | Guidance to Forex Dealers and Treasury Exams

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What you will learn

• Understand how forex dealings work in banks
• Understand how foreign exchange rates are calculated
• Become a forex dealer at a bank

Rating: 4

Level: Beginner Level

Duration: 2 hours

Instructor: Anwesha Sengupta, CITF, CAIIB