The book continues the tradition of providing a blend of sound theoretical knowledge of foreign exchange economics with practical and procedural aspects of banks and other institutions connected with foreign exchange. Each topic is comprehensively dealt with, looking at it from every angle, viz., the conceptual framework, exchange control regulations, rules of FEDAI and the International Chamber of Commerce, and procedures of banks. It presents in a cogent and understandable manner materials that lie scattered. The book is designed to meet the requirements of post-graduate courses in commerce and economics and MBA for papers such as ‘Foreign Exchange’, ‘Foreign Exchange Risk Management’ and ‘International Finance Management’. Practical questions that appeared in professional courses of Chartered Accountants, Cost and Management Accountants and Chartered Secretaries and MBA courses have been included in appropriate chapters with full solutions. To encourage student to attempt on his/her own the solutions are provided after the set of questions and not after each question

Contents :

Section A: Framework of Foreign Exchange
Introduction
Foreign Exchange Regulations
Balance of Payments
International Monetary Systems
Exchange Rate Determination
International Monetary Fund
Section B: Foreign Exchange Markets and Deals
Foreign Exchange Market
Forward Exchange Deals
Merchant Rates – Ready
Merchant Rates – Forward
Merchant Rates – Cross Currency
Execution of Forward Contract
Exchange Management by Banks
Section C: Derivatives and Risk Management
Currency Derivatives
Currency Futures
Currency Options
Corporate Policy on Exposure and Risk
Transaction Exposure
Accounting Foreign Currency Transactions
Translation Exposure
Economic Exposure
Interest Rate Risk
Financial Swaps
Section D: Foreign Trade Procedures and Documents
International Trade Procedures
Letter of Credit
International Trade Documents
Bank Finance for Exports
Section E: External Sources of Funds
Non-resident Deposits and Investments
International Financial Markets
Raising Debt Abroad
Raising Equity Abroad
International Financial Institutions