MANAGEMENT OF FOREIGN EXCHANGE OPERATIONS
Objective:
To provide comprehensive knowledge on foreign exchange markets and exchange rate mechanism. To give in-depth inputs on foreign exchange risks and tools for foreign exchange risk management with focus on forwards.
Background:
In the course of its business bank has to buy and sell various foreign exchange-based instruments. In this process the bank is exposed to foreign exchange risk. Foreign exchange markets globally have continued to be resilient in spite of the global economic downturn and foreign exchange market activity of Nepali Banks have continued to increase with multi-fold increase in international remittance, merchandise imports and exports. Market has seen huge volatility in USD-NPR exchange rates in the yester years. Increased intraday volatility and lack of liquid two-way markets have multiplied the risk level to higher platform. Increased awareness among the foreign exchange counter parties and customers has many times led to greater challenge for bank's Branches, Trade, Remittance and other operational areas employees to be more prepared to manage the impending risk.
Geopolitical volatility continues to weigh on the global financial market including the huge foreign exchange markets. Central Bank rate decisions in the US, Canada and Europe continue to influence the market expectations. Fundamental economic data releases are equivocally important. The relevance of forex risk management in order to optimize return from the forex operations, and hedging the risks in international trade/remittance business. Banks have a crucial role here to help the clients manage their foreign exchange exposures though suitable risk management products.
To enable the concerned executives to effectively manage risks in various foreign exchange transactions in this challenging global environment, KFA is offering this new program with a focus on operational issues in foreign exchange markets and currency risk management in Nepal.
Workshop Coverage:
- International economic scenario: exchange rate implications
- Overview of foreign exchange business: products, transactions and operations in branches
- Current and capital account transactions
- Foreign Exchange Markets and dealing room operations
- Exchange rate mechanism and factors affecting exchange rates
- Tools of Risk Management: Forward: rebooking and cancellation; Futures, Swaps, options
Target Audience:
Branch Managers, Operation Managers, Remittance Department Staffs, Trade Finance Department Staffs