Currency Management Training Course

INTRODUCTION

Effective currency management is crucial for international companies engaged in significant cross-border transactions. By developing strategies to limit exposure to foreign exchange rate fluctuations, companies can maximize returns on foreign market operations and protect their cash flows, assets, and liabilities. Proper currency management involves utilizing various foreign exchange tools and strategies to remain competitive and mitigate risks. Our comprehensive Currency Management Training Course provides participants with an in-depth understanding of currency management, including strategies and associated risks. This training on currency management equips professionals with the knowledge and skills necessary to manage currency effectively, ensuring they are prepared to handle multiple responsibilities and seize greater opportunities for career growth and progression. Participants will learn to devise and implement robust strategies to combat exchange rate impacts, predict and prevent potential future disruptions, and train others in best practices for currency management.

Course Objectives

By the end of the course, participants will be able to:

• Understand all critical areas and aspects of currency management.
• Apply the skills and knowledge gained in various organizational contexts.
• Devise and implement strategies to combat the impact of exchange rates.
• Predict and prevent future exchange rate hindrances.
• Train other professionals on best practices in currency management.
• Review and amend organizational systems to meet industry standards.
• Multitask across various roles to help organizations meet performance standards.
• Fulfill any role or responsibility in currency management, enhancing career growth.

Duration

10 Days

Who Should Attend

This training course is suitable for a wide range of professionals, including:

• Executives handling various functions related to currency management.
• Managers and leaders overseeing currency management functions.
• Investors or potential investors needing to understand currency management strategies.
• Legal and financial advisors impacted by currency fluctuations.
• Compliance officers ensuring adherence to external standards.
• Government officials working with organizations affected by foreign exchange fluctuations.
• Any professional interested in currency management, risks, strategies, and asset management.

Course Content

Module 1: Top Currency Management Strategies

• Clear forex strategy
• Billing/invoicing choices
• Different payment methods
• Complete regulatory requirements
• Efficient cash flow management
• Centralized multi-forex treasury management
• Automated payments solution

Module 2: 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

Module 3: 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

Module 4: Types of Exchange Risks

• Transaction risk
• Translation or consolidation risk
• Economic risk

Module 5: 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

Module 6: Currency Risk Management Tools

• Limit orders
• Stop-loss orders
• OCO ('One Cancels the Other') orders
• Forward contracts
• Futures currency hedging

Module 7: Derivative Instruments for Forex Risk Management

• Forwards
• Futures
• Options
• Swaps

Module 8: 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

Module 9: Types of Hedging Strategies

• Back-to-back hedging
• Tracker hedging
• Delta hedging

Module 10: Categories of Hedge-able Risks

• Commodity risk
• Credit risk
• Currency risk
• Interest rate risk
• Equity risk
• Volatility risk
• Volume risk

Module 11: Advantages of Hedging

• Limits losses to a great extent
• Increases liquidity
• Offers a flexible price mechanism

General Notes

• This course is delivered by seasoned trainers with extensive experience as expert professionals in their respective fields. It combines practical activities, theory, group work, and case studies.
• Participants receive comprehensive training manuals and additional reference materials.
• Upon successful completion, participants are awarded a certificate.
• Customized training courses can be arranged to meet specific organizational needs. Contact us at training@skillsforafrica.org for more information.
• The training will take place at the SKILLS FOR AFRICA TRAINING INSTITUTE in Nairobi, Kenya.
• The training fee covers tuition, materials, lunch, and the training venue. Accommodation and airport transfers can be arranged upon request.
• Payment should be sent to our bank account before the start of training, with proof of payment sent to training@skillsforafrica.org.