What Foreign Exchange Risk?

Slides:



Advertisements
Similar presentations
WHAT IS “FOREX ?”.
Advertisements

Exchange Rate Determination 4 4 Chapter South-Western/Thomson Learning © 2003.
Exchange Rate Determination 4 4 Chapter South-Western/Thomson Learning © 2003.
Relationships Between Inflation, Interest Rates, and Exchange Rates 8 8 Chapter South-Western/Thomson Learning © 2003.
IBUS 302: International Finance Topic 2–FX Market Overview Lawrence Schrenk, Instructor.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan.
Unit 4 Foreign Exchange Market. I. Definitions of Foreign Exchange & Foreign Exchange Market.
The International Flows of Goods and Capital International trade in goods and capital increase consumption possibilities beyond production possibilities.
©2003 Prentice Hall Business Publishing, Advanced Accounting 8/e, Beams/Anthony/Clement/Lowensohn Foreign Currency Concepts and Transactions Chapter.
Copyright © 2011 Pearson Education 9-1 International Business Environments and Operations, 13/e Global Edition Part 4 World Financial Environment.
Foreign Currency Transactions and Hedging Foreign Exchange Risk
Emerging Financial Markets 5: Currency Trading & Risk Management Prof. J.P. Mei.
Presented by :- BHAVIK BHALALA 01. BHAVIK BHALALA.
CURRENCIESARE TRADED IN PAIRS CURRENCIESARE. CURRENCIES ARE TRADED IN PAIRS  Forex trading is the simultaneous buying of one currency and.
Currency Futures and Forwards. Outline Meaning of Futures Features of Futures Contracts Using Futures for Hedging and Speculation Meaning of Forwards.
1 Foreign Exchange Rate Determination: Expectations and the Asset Market Model International Financial Management Dr. A. DeMaskey.
Principles of foreign exchange Chapter 4. Overview Trading one currency for another arises from the elements that make up a nation’s balance of payments:
The Foreign Exchange Market B 645. Outline Meaning of the Foreign Exchange Market Rationale for the Foreign Exchange Market Characteristics of the Foreign.
1 Potential Foreign Exchange Rate Determinants Parity Conditions 1.Relative inflation rates 2.Relative interest rates 3.Forward exchange rates 4.Exchange.
Exchange Market as a Part of International Financial Markets, Participants and Functions of Exchange Market Matúš Czakó Ján Lajda.
Financial Markets and Institutions. Financial Markets Financial markets provide for financial intermediation-- financial savings (Surplus Units) to investment.
Commission's report on economic consequences of Country-by-Country Reporting (CBCR) Conference “Banking transparency: Managing risks, Maximizing Opportunities”
Foreign Currency Transactions and Hedging Foreign Exchange Risk
Financial Derivatives market of Brazil. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives.
The Foreign Exchange Market International Finance (MB 74)
Foreign exchange markets Dr.Guru. Raghavan. Some basic concepts Why we need foreign exchange? What foreign exchange means? Role of exchange rates Payment.
International Financial Markets
Chapter 4 Exchange Rate Determination. Copyright  2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad.
 Foreign Exchange. Basics of Forex  Marketplace where currencies are exchanged  Critical for conducting foreign business  Largest financial market.
Tutor2u ™ Exchange Rates A2 Economics Presentation 2005.
Copyright ©2003 McGraw-Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea Chapter 9:The Foreign.
Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared.
Introduction: Derivatives Options - a contract that gives buyer the right (not obligation) to purchase or sell something at a later time. Forward/Futures.
FOREIGN EXCHANGE & INTERNATIONAL FINANCIAL MARKET GROUP 3 :  Ni Putu Lia Cahya P ( )  Mita Dwi P( ) UNIVERSITAS BHAYANGKARA SURABAYA FAKULTAS.
Functions of Foreign Exchange Market Transfer Function Credit Function Hedging Function Foreign Exchange Market Functions of Foreign Exchange Market.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-1 International Business Environments and Operations, 13/e Part 4 World Financial.
Foreign Exchange What is the foreign exchange rate? What is the foreign exchange market? What is the foreign exchange organization? Who are the participants?
The Foreign Exchange Market
Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared.
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 9-1 Part Four World Financial Environment Chapter Nine Global Foreign Exchange And.
Relationships Between Inflation, Interest Rates, and Exchange Rates 8 8 Chapter South-Western/Thomson Learning © 2003.
Finance (Basic) Ludek Benada Department of Finance Office 533
Part 4 World Financial Environment 9-1 Copyright © 2011 Pearson Education.
Presentation on Derivatives Hasan A Bilgrami Karachi, March 18, 2006.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.1 CHAPTER 33 The Market for Foreign Exchange and Risk Control Instruments.
Foreign Exchange Buyers/sellers of foreign currency -- trade domestic money for foreign money no centralized location, but NYC, London, Tokyo, Zurich =
Exchange Rate Determination
Derivatives trade Details of FWD points
Section IV Payment Terms and Procedures.
FOREIGN EXCHANGE DERIVATIVEMARKETS
Relationships Between Inflation, Interest Rates, and Exchange Rates
Financial Risk Management
Financial Risk Management
WOMEN & INVESTMENT Sabah Almoayyed.
Exchange Rate Determination
Relationships Between Inflation, Interest Rates, and Exchange Rates
Foreign Exchange Management
AIM: HOW DO EXCHANGE RATES IMPACT TRADE?
The International Flows of Goods and Capital
FOREIGN EXCHANGE DERIVATIVEMARKETS
Currency Forwards.
International Economics By Robert J. Carbaugh 9th Edition
The Foreign Exchange Market
FIN 440: International Finance
Relationships Between Inflation, Interest Rates, and Exchange Rates
The Foreign Exchange Market
Relationships between Inflation, Interest Rates, and Exchange Rates
Ministry Of Supply & Internal Trade
1. Context against what the thesis is set
Foreign Exchange Markets
Presentation transcript:

What Foreign Exchange Risk? Creating an Environment for Boosting Investor Confidence: A Practitioner’s Perspective

Objectives Examine some key market characteristics The nature of Foreign Exchange risk in our market Suggestions to Improve our attractiveness 20 November, 2018

Key Market Characteristics Predominantly centralized spot dealer market Under-developed forward foreign exchange and derivatives market Limited inter-bank trading Sign of the existence of a small parallel market 20 November, 2018

Key Market Characteristics Mainly US dollar trade Low market transparency Limited scope for price discovery Significant inter-regional trade 20 November, 2018

Customer Bank Foreign Exchange Risk Central Bank 20 November, 2018

Reduced Conversions 20 November, 2018

Increased Purchases from CBTT 20 November, 2018

TTD/USD Rate Movement 20 November, 2018

20 November, 2018

20 November, 2018

20 November, 2018

Challenges Managing increasing exchange rate risk Heightened competition for scarce dollars The allocation problem Managing the increased speculation Maintaining stable exchange rate 20 November, 2018

What is needed? Need for greater transparency Development of the Forward Exchange and derivative market Move to a more decentralized dealer market Collaboration between regional banks to unblock cash-flows and support trade 20 November, 2018

Thank You 20 November, 2018

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.