Foreign exchange international finance risk management

The globalization and liberalization of the Indian economy since 1991 has led to an exponential rise in the currency exposures of Indian businesses. Increasing exchange rate volatility has made Indian business entities more vulnerable to the risks arising out of not only revenue and capital account transactions but also economic exposures, which often arise without direct foreign currency dealings. In such circumstances, it has become vital for finance managers to understand the functioning of currency markets. With banks offering various hedging instruments to manage the risk, it is equally important to understand when and how to use these instruments, especially complex, structured derivative products.
The book provides a comprehensive understanding of the functioning of the forex markets, the risks and objectives pertinent to forex exposures, the derivative instruments available for hedging, as well as an insight into some of the disputes between banks and their counterparties in relation to mis- selling of derivatives as hedging alternatives.

Apart from covering the risk management issues, the book touches upon the relevant accounting and regulatory aspects in the treatment of forex derivatives.

The book has the following sections:

Section I: Foreign Exchange Market
Section II: Cross Border Finance
Section III: Derivatives
Section IV: Risk Management and Accounting