Effective Foreign Currency Management
SBI250176
Overview
Whether it is domestic firm or multinational corporation, managing foreign currency is crucial. The appreciation and depreciation of foreign currency affects the firm’s profitability and liquidity. Therefore, an appreciation of how international trade, business, economic and political developments could impact the exchange rate movement is critical in business strategic planning and control. Therefore, managers and executives in all functions should understand how to interpret the exchange rate, understand how the exchange market works and introduce effective tools and techniques in managing foreign currencies.
The trainer uses practical exercises to demonstrate the interpretation of foreign exchange rate and determine the extent of currency appreciation and depreciation. Methods and techniques of managing foreign currency correctly will be thoroughly discussed.
Event Detail
During this 1 day session, participants will be guided on the following :
- Introduction of Foreign Exchange
- Why do firms go international
- Types of overseas operations
- Differences between domestic and multinational financial management
- Current development impacting foreign currencies - Currency Risk Management
- Financial strategies to guard against foreign currency depreciation
- Impact of changes in foreign exchange rates
- How to read and forecast foreign exchange rates - Interpreting Foreign Exchange Rates
- Spot rate
- Forward exchange rate
- Direct quote vs Indirect quote
- Differentiation between foreign currency appreciation and depreciation
- Bid and ask quotation - Arbitrage and Hedging
- Currency arbitrage
- Hedging strategies
Note : Participants are expected to perform calculations using their own calculators during this workshop
Programme/Agenda
At the end of the workshop, participants would be able to :
- understand how international currency conversion works
- use effective hedging strategies to lower currency risks and earnings volatility and to raise valuation
- assess their organisation's currency exposure to protect from potential losses
WHY SHOULD I ATTEND
“We are able to put the knowledge learnt into practice. Trainer is very knowledgeable and willing to share.” ----- Lin Xuanli, Executive - Finance
“The exercises were very useful to reinforce the understanding of the concept taught.” ----- Sim Wee Meng, CEO
This workshop is for managers and executives who are new to how foreign exchange works but need to know the application of currency related techniques when making business decisions. Also, ideal as an in-house workshop where employees from various departments or divisions can utilise their respective information and operational data to develop a comprehensive set of interlinked foreign currency management and control within the organisation.
