Foreign Exchange Rate Determination and Management

This course has been specially designed and packaged to avail participants the opportunity of learning about the evolution, the developments, and the advancements of the regimes of foreign exchange rate determination and management – both at the global and domestic levels, from inception to date. Participants will learn from historical insights to guide future policy directions through the adoption of contemporary foreign exchange management practices. The program leverages international best practices and also explores Nigeria’s pre- and post-SAP foreign exchange regimes, market infrastructure reform, and the introduction of FX derivatives. The workshop is interactive and hands-on with practical exercises, case analysis, and extensive discussions aimed at evaluating Nigeria’s prevailing forex policy vis-à-vis the economy to suggest pragmatic alternatives.

Learning Outcomes

• The Evolution of International Monetary System
• Overview of Foreign Exchange Market in Nigeria
• Financial Derivatives Operation in the Foreign Exchange Market
• The Regulatory Guidelines for the Nigerian Interbank Forex Market
• Illustration of Naira-Settled OTC Foreign Exchange Futures
• Practical Demonstration of Forex Futures Trades, Swaps, Options Strategies & Valuation
• Risk Management Techniques Used in Foreign Exchange Market

Venues & Dates

• Dubai: TBD
• Dublin: TBD
• Edmonton: TBD
• Ghana: TBD
• London: TBD
• Nigeria: TBD

Cost

$3,800 per participant (USD)

For Whom

• Monetary Regulatory Staff of Central Banks
• Regulators of Foreign Exchange Markets and Operations
• Financial Crime & Fraud Prevention Employees
• Chief Risk Officers and Heads of Risk Management
• Market, Credit, and Operational Risk Specialists
• Forex Managers
• Hedge Funds Executives
• Policy Formulators & Implementers

Modules

1. Evolution of International Monetary System
2. The Trajectory of Nigerian Foreign Exchange Rate Policy Regimes Pre- & Post SAP Till Date
3. Overview of Financial Derivatives – Forwards – Futures – Options – Swaps
4. The Nigerian Perspective of Structured Products FX Forwards, Futures and Swaps
5. Exchange, Trade, and Over-the-Counter (OTC) Derivative Markets
6. Roles of CBN and FMDQ in Market Deepening of the Nigerian FX Derivatives Market
7. The Use of Deliverable and Non-Deliverable Forwards in Emerging Markets
8. Risk Management – Currency and Interest Rate Risk Mitigation Using Derivatives
9. Introduction to Option Pricing, Risks, and Practical Applications
10. FX Trading Styles & Strategies – Using Currency Options to Express Trading Views
11. Detailed Discussion of the Current CBN Guidelines for FX Derivatives
12. CBN FX Forwards Modalities – Expectations & What Needs To Be Done
13. Naira-Settled OTC FX Transactions – Analysis of Recent CBN Guidelines & Market Responses
14. Practical Demonstration & Case Studies Involving FX Market Risk and Currency Crisis
15. Financial Market Infrastructure – Analysis of Recent Changes in the Role of Market Regulators
16. Forex Clearing and Settlement Operations – The Risks and Intricacies
17. Contingent Assets and Liabilities ISDA Conventions & Market Governance – Alignment with the Nigerian Framework
18. Global Conventions vs. Existing Procedures and Documentation

Case Studies

• FX Market Risk Blowups and Market Manipulation – Case Studies on HSBC, UBS, Citi and JPMorgan (2014)