The workshop aims to provide a practical and interactive introduction to the foreign exchange market that will include explaining jargon, identifying market participants and differentiate between the wholesale and retail markets. More specifically it will cover
• the spot market including aspects such as what determines exchange rates, how currency pairs are quoted, calculating settlement values, deriving cross rates given two conventional market quotes and settlement of foreign exchange deals
• the forward markets including how forward foreign exchange rates are determined, how forward points are calculated, what causes forward points to change, the difference between outright foreign exchange and foreign exchange swap deals as well as the difference between currency swaps and foreign exchange swaps
• managing foreign exchange risk including their use by importers and exporters, non-deliverable forwards and how they are used for speculation, and currency options including the nature of call and put options and how they are used to hedge exchange rate exposure and option hedging strategies.
Relevant exercises and a post-course assessment if required.