Mechanics of Currency Management and Currency Derivatives

Description

Introduction
This course aims to create awareness and develop a better understanding of the mechanics of currency management and currency derivatives. In several countries, the issuance of currency and the general business affairs of the central bank or reserve bank are carried on through two different specialised departments– Issue Department and Banking Department.

The Issuing department is responsible for the total value of the currency notes in circulation and to safely keep the total assets of the desired value. This department is liable in the issuance of banknotes in exchange of other denominations and against assets and instrumental in the process of getting currency notes or coins from printing presses or mints and distributing currency among the public across the country. It is also responsible for withdrawing unfit and improper currency from the circulation.

Course Content

• Planning for currency issue
• An introduction to derivatives
• Currency risk management
• Interpreting the foreign exchange rate
• Currency future strategies and currency options strategies

Learning Outcomes

• Be able to manage foreign exchange efficiently and maintain secured and effective processes for accounting
• Obtain knowledge of currency markets, specifically the Exchange Traded Currency derivatives markets, how it acts as a risk management tool as well as the trading platform and providing the smooth cash flow to meet the country’s demand.
• Print notes and mint coins from government-owned and self-run Note Printing Presses and Mints.
• Distribute and circulate sufficient notes and coins
• Maintain desired quality of notes fit and appropriate for circulation
• Withdraw unfit and inappropriate notes from circulation