Preview

Using Camels Framework as a Tool Performance Evaluation for Bank of Baroda" for Banking and " Foreign Exchange and Risk Management"

Good Essays
Open Document
Open Document
1409 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Using Camels Framework as a Tool Performance Evaluation for Bank of Baroda" for Banking and " Foreign Exchange and Risk Management"
MAIN OBJECTIVE
This project attempt to study the intricacies of the foreign exchange market. The main purpose of this study is to get a better idea and the comprehensive details of foreign exchange risk management. SUB OBJECTIVES

 To know about the various concept and technicalities in foreign exchange.

 To know the various functions of for ex market.

 To get the knowledge about the hedging tools used in foreign exchange.

LIMITATIONS OF THE STUDY

 Time constraint.

 Resource constraint.

 Bias on the part of interviewers.

DATA COLLECTION

 The primary data was collected through interviews of professionals and observations.

 The secondary data was collected from books, newspapers, other publications and internet.

DATA ANALYSIS

The data analysis was done on the basis of the information available from various sources and brainstorming.

INTRODUCTION

FOREIGN EXCHANGE MARKET OVERVIEW
In today’s world no economy is self sufficient, so there is need for exchange of goods and services amongst the different countries. So in this global village, unlike in the primitive age the exchange of good sand services is no longer carried out on barter basis. Every so foreign country in the world has a currency that is legal tender in its territory and this currency does not act as money outside its boundaries. So whenever a country buys or sells goods and services from or to another country, the residents of two countries have to exchange currencies. So we can imagine that if all countries have the same currency then there is no need for foreign exchange.
Need for Foreign Exchange
Let us consider a case where Indian company exports cotton fabrics toUSA and invoices the goods in US dollar. The American importer will pay the amount in US dollar, as the same is his home

You May Also Find These Documents Helpful

  • Good Essays

    MGT 370 Test 3

    • 368 Words
    • 2 Pages

    Question 1. 1. The risk resulting from possible fluctuations in currency exchange rates is called: (Points : 1)…

    • 368 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Eco 372 Team Paper

    • 1490 Words
    • 6 Pages

    Moffatt, M. (n.d.). A beginner 's guide to exchange rates and the foreign exchange market.…

    • 1490 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Fins1612 Notes

    • 17846 Words
    • 72 Pages

    Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options…

    • 17846 Words
    • 72 Pages
    Powerful Essays
  • Good Essays

    Exchange rate risk relates to the effect of unexpected exchange rate changes on the value of the firm. Tiffany & Company are exposed to exchange-rate risk subsequent to its new distribution arrangement with Mitsukoshi due to the fluctuating exchange rate. Yen is usually more volatile and tends to fluctuate in the same direction as the dollar. Yen is also overvalued and could depreciate resulting in lost profits. These risks are fairly serious because they can decrease both profit margin and the value of assets of the company. Not protecting themselves against this exchange rate risk will hurt the company’s sales, bottom line, and top line; therefore it is extremely important that Tiffany realizes these risks.…

    • 594 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Global finance operations include financial procedures, such as accounting, financial planning and analysis, strategic planning, treasury, investor relations, and financial compliance. Exchange rate is the existing market cost for which one currency can be exchanged for another (Moffatt, n.d.). For instance, when the U.S. exchange rate for the Japanese Yen is ¥1.10, this means that 1 American Dollar can be exchanged for 1.1 Japanese Yen. The purpose of this paper is to analyze the exchange rate mechanism (Euro Currency Markets), to describe how this mechanism is used in global financing operations, and to analyze its importance in managing risks.…

    • 1454 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    On one hand, the foreign exchange market reflected considerable stress under the lingering European debt crisis. On the basis of the Financial markets Stability Map(Graph1), apparently, financial markets, particularly the foreign exchange market continued to be weaker and experienced the heightened volatility. This weakness is shown in the graph1 that risks successively increase as the movement gradually moves away from the map center. Dissimilarly, risks in the rest of three components of the financial markets stability map, banking sector funding, debt and equity markets remained largely stable as well as unchanged, compared with the foreign exchange market. Generally to say, as indicated by the trends in…

    • 2402 Words
    • 10 Pages
    Best Essays
  • Good Essays

    The focus of this source is to explain the inevitability of arbitrage in the FX market. This source provides an effective overview of the realities of arbitrage, including an in depth description of arbitrage’s propensity to have a deceptive presence in the FX market. The article, written for an audience already…

    • 818 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    This paper addresses the future of the foreign exchange market using two organizing (and provocative) ideas. At the risk of jumping the gun, let me state them right off:…

    • 4423 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Hedging at General Motors

    • 3597 Words
    • 15 Pages

    The first part of this report outlines the various types of foreign exchange exposures that GM can subject itself to and also outlines what methods can be used to reduce the risk associated with changes in the value of currencies; the policies adopted by GM are then outlined and the strategic decisions required in ensuring the viability of the policies. An assessment of GM’s hedging policy is then made and various points are outlines in regards to potential improvements that can be made ranging from how options are exercised to whether translation exposures should be included in the hedging policy.…

    • 3597 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Exchange Rate Analysis

    • 2655 Words
    • 11 Pages

    The exchange rates data has been collected and analysed, presented by graphs to show the general trend of exchange rate between AUD/USD and RMB/USD for the past 120 days. The six research questions has been formulated and concluded. We use the statistical techniques such as the regression equation to work out the relationship between AUD/USD and RMB/USD. As well as using the hypothesis testing to find out any significant differences in the variability of the depreciation of USD for the two other currencies.…

    • 2655 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    In the increasingly globalized business environment, the foreign exchange market is playing a more and more important role. This essay firstly discusses the valuation of Chinese Yuan and the global economic balance with reference to the case “Chinese Yuan and Economic Balance” (Question 1). Secondly, it continues to focus on the situation of Japanese Yen, based on the article “The Yen and Exports: Japan’s Continued Recovery” (Question 2). Finally, it discusses three questions about foreign exchange calculations. (Question 3)…

    • 2586 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    In this era of globalization, people/company are opareating many countries. But the value of currency of one country differes from another. So the people face various problems to transact from own local currency in the international market. So a service marketer wanted to make it convenient when the transaction is done between different value of currency.…

    • 9772 Words
    • 40 Pages
    Powerful Essays
  • Powerful Essays

    Ghghjjh

    • 1679 Words
    • 7 Pages

    The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2010 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2010. 53 central banks and monetary authorities participated in the survey, collecting information from 1,309 market participants.…

    • 1679 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    and performance. At last is the summary of the major structured points of the paper.…

    • 3718 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    “Automated forex trading system is a great way to achieve decent amount of profits from the financial market. But, still you have to know about the warnings of this system.”…

    • 917 Words
    • 4 Pages
    Good Essays