Foreign Exchange and Money Markets - DOC

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					      Foreign Exchange and Money Markets

Day One
  -   Foreign Exchange Markets
  -    History, Development & Structure

  -    Economic Indicators

  -    Foreign Exchange Market
       o What the Foreign Exchange Market is
       o Actors in the Foreign Exchange Market

  -    Foreign Exchange Tools/Rules

  -    The Treasury function

  -    The concept of currency values

  -    Understanding Foreign Exchange Risk Management

Day Two
  -    Rates in the Foreign Exchange Market

  -    Meaning of Exchange Rate

  -    Fixed & Floating Rate

  -    Factors affecting spot exchange rate

                 Technical Factors
                 Fundamental Factors

  -    The balance of payments approach

  -    Meaning of Exchange quotations

  -    Two-way markets : Bid and offer rates

  -    Problems
Day Three
  -   Spot Market
  -       What is spot foreign exchange

  -       Spot value dates

  -       Forward value dates

  -       Operations in the trading room

                      Buying & Selling Foreign Currencies

  -       Quoting Bank and Calling Bank

  -       Meaning of Exchange Quotations

                      Reciprocal rates
                      Cross Rates
                      Price and Volume Quotations

      -   How can you evaluate the quality of a quotation?

  -       Practice problems.

Day Four
  -   Forward Markets
  -       Definition

  -       Calculation of Forward Exchange Rates / Margins

  -       Forward Discounts / Premiums

  -       Benefits and costs of premiums and discounts

  -       Forward rate Formula

  -       Applications of forward exchange rates

  -       Practice Problems on forward

  -       Forward rate agreement

  -       Currency arbitrage & interest rate arbitrage
  -    Swap markets
  -    Currency swaps

  -    Pure swaps and engineered swaps

  -    Swap transactions with matched cash flows / with mismatched cash

  -    Covered interest arbitrage

  -    Central Bank Swaps

Day Five
  -    Money Markets
  -    What the money markets is

  -    Actors in the money market

  -    Rates in the Money Market

  -    Interaction between the money and foreign exchange markets

  -    Operating in the money markets

  -    Gapping in the money market
              Opening & Closing negative GAP
              Opening & Closing Positive GAP

  -    Currency options markets
                    Definitions and concepts

  -    Practice problem

  Suheil Hanna

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