Description
Market volatility makes it essential to cover imports and exports in order to guarantee the margin rate. A precise knowledge of the foreign exchange market and hedging instruments is essential for treasurers of companies trading with third countries.
Who is this training for ?
For whom ?Treasurer and treasury collaborator. Accounting and financial manager.
Prerequisites
Training objectives
Training program
- Foreign exchange markets
- Actors and types of transaction.
- Spot prices, futures, swap transactions.
- Quotation at certainty, at uncertainty.
- Factors influencing prices.
- Interaction with the interest rate markets.
- Manage cash currency Currency account interest.
- Pay in currency.
- Place an exchange order at best or at limit rate.
- Check bank invoicing.
- Evaluate the exchange rate risk Sensitivity of the result to exchange rate fluctuations.
- Construct the exchange position monitoring table.
- Master hedging instruments
- Natural hedges: compensation of inverse positions.
- Foreign currency advances.
- Forward purchase or sale, term at notice.
- Determination of the postponement.
- Extend or anticipate the deadline.
- Non Deliverable Forward: non-transferable currencies.
- Classic and barrier options, tunnels with zero or reduced premium.
- Foreign exchange guarantees.
- Define a foreign exchange risk management policy Parameters: coverage of forecasts or certain flows, duration and % of coverage.
- Hedging thresholds by currency.
- Use of a 'budget' rate.
- Choice between firm instruments and options.
- Illustration different policies and procedures.
- Foreign currency financing
- Short and medium term currency swaps.
- Overview of foreign exchange transactions under IFRS standards
- Fair value and future cash flow hedging.
- Accounting for futures contracts, options.
