Foreign Exchange Risk Management

Course Start Date: 21st May 2023

Training Duration: 4 Days

Practical application through exercises:

  • Excel Exercises
  • Case Studies

Learning Outcomes


To learn the concept of foreign exchange & its management


To understand the causes of foreign exchange risk


To learn the basic concepts of forecasting foreign exchange movements

To learn about FX forward rates


To learn about foreign exchange risk management and its techniques

Course Outlines

  • What is Foreign Exchange Risk
  • What is Foreign Exchange Risk Management
  • Macroeconomic Factors
  • Government Policies
  • Sovereign Risk
  • Key global macro-economic indicators and their impact on the USD movement
  • Fundamental Analysis and Leading Market Indicators
  • Technical Analysis and Patterns and Forecast Methods
  • Calculating Forward Rates
  • Factors affecting forward rate premium/ discount
  • The Determinants of Spot and Forward Rates: Covered, Uncovered and Purchasing Power Parity
  • Measuring and Evaluating Foreign Exchange Risk
  • Transactional Risk and best practices to hedge the same
  • Translational Risk and best practices to hedge the same
  • Determining the Risk Management Strategy – assessing impact and probability
  • Internal Hedging Techniques 
  • Invoicing in the local currency, 
  • Netting, 
  • Matching, 
  • Leading & Lagging
  • External Hedging Techniques & Strategies
  • Hedging with specialized ETFs, 
  • Hedging with Contract For Differences
  • Forward Exchange Contracts – Fixed and Option
  • Forward contracts
  • Currency futures
  • Currency options
  • Currency swaps
  • Hedging V/s Financial Instruments