Currency Management
(Risk, Strategy & Asset Management).
January 2023
Sandton Johannesburg South Africa
Register Now! Limited Seats Available!
R19, 999.00 Per delegate
Course overview:
Currency management is a process by which international companies that have considerable cross-border transactions devise strategies to limit their exposure to and impact from fluctuations in the foreign exchange rate.
This is also aimed to maximise return on foreign market operations. Effective management of currency and its associated risks is key to the successful performance of global portfolios.
Currency management includes the protection of cash flows, assets and/or liabilities from exchange rate fluctuations. There are various types of foreign exchange tools and strategies that are adopted by companies to stay relevant in the market space and survive the competition.
This training course will prepare you to undertake any role and responsibility within the domain of currency management, thus making you a dynamic professional capable of handling multiple responsibilities and accepting greater opportunities enabling faster career growth and progression.
Course Objectives:
- understand and learn about all critical areas and aspects of currency management
- apply the skills and knowledge gained through the training course in various areas of interest in one’s organisation
- devise and implement competitive and strong strategies to combat any impact of exchange rates on the performance of one’s organisation
- predict and prevent future instances or hindrances in exchange rates from interfering with the operation of one’s organisation
- train other professionals on best practices and other important concepts related to currency management
- review and amend current organisational systems and processes to match industry standards and to be able to compete at the global level
- multitask among multiple roles to be able to help one’s organisation meet performance standards and grow within the industry, thus demonstrating one’s potential and talent, inviting additional opportunities for career development
- thoroughly understand currency management to be able to undertake and successfully fulfil any role or responsibility offered to one across any organisation, thereby increasing avenues for one’s growth and progression
Targeted Audience:
- Executives handling various functions related to currency management
- Managers and leaders overseeing functions related to currency management
- Investors or potential investors who need to understand the currency management strategies of an organisation before making investment decisions
- Legal and financial advisors who play important roles in their respective domains when currency fluctuations impact organisational performance, position or prospect
- Compliance officers who need to ensure that the firm is operating in adherence with external standards
- Government officials working closely with organisations facing an impact of foreign exchange fluctuations
- Any other professional who would like to know more about currency management, including the related risks, strategies and asset management
Course Outline:
Top Currency Management Strategies
- Clear forex strategy
- Billing/invoicing choices
- Different payment methods
- Complete regulatory requirements
- Efficient cash flow management
- Centralised multi-forex treasury management
- Automated payments solution
Currency Management Planning and Forecasting
- Understanding currency lifecycle
- Distribution of currency within the country
- Currency Design and Printing
- Strategies to protect the currency & Cash handling guidelines
- Data analytics and forecasting
Factors Affecting Foreign Exchange Rates
- Inflation rates
- Interest rates
- Country’s current account/balance of payments
- Government debt
- Terms of trade
- Political stability and performance
- Recession
Types of Exchange Risks
- Transaction risk
- Translation or consolidation risk
- Economic risk
Techniques for Foreign Exchange Risk Management
- Risk sharing
- Diversification
- Natural hedging
- Payments netting
- Leading and lagging
- Cross hedging
- Overseas loan
- Money market hedge
- Borrowing policy
Currency Risk Management Tools
- Limit orders
- Stop-loss orders
- OCO (‘One Cancels the Other’) orders
- Forward contracts
- Futures currency hedging
Derivative Instruments for Forex Risk Management
- Forwards
- Futures
- Options
- Swaps
Types of Hedging
- Forward exchange contract – currencies
- Currency future contracts
- Money market operations – currencies
- Forward exchange contract – interest
- Money market operations – interest
- Future contracts for interest
- Covered calls on equities
- Short straddles on equities/indices
- Bets on elections/sporting events
Types of Hedging Strategies
- Back-to-back hedging
- Tracker hedging
- Delta hedging
Categories of Hedge-able Risks
- Commodity risk
- Credit risk
- Currency risk
- Interest rate risk
- Equity risk
- Volatility risk
- Volume risk
Advantages of Hedging
- Limits losses to a great extent
- Increases liquidity
- Offers a flexible price mechanism
End of the workshop
IN HOUSE AND ONLINE TRAINING
While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.
For Registration and other Training arrangements,
contact us on the detail below.
SOUTH AFRICA : +27 11 057 6001
TANZANIA Cell: +255 769 688 544
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com
