Discuss Foreign Exchange Management
Subject: Finance | Topics:

Foreign Exchange Management:

Foreign Exchange Risk Management

Foreign exchange risk is defined as the potential change in earnings arising in market prices .The market directly affects each country ‘s bond ,equities, private property, manufacturing, and all assets that are available to foreign investors. Foreign exchange rate also play a vital role in determining who finances government deficits, which buys equities in companies and literally affects and influences the economic scenario.

Due  to high risk market the role of treasury operations is crucial .As per Bangladesh Bank ‘s guidelines the bank has segregated the front and back office of treasury operations.

Front office independently conducts transactions and the office is responsible for verification of the deals and the passing of their entries in the books of accounts. All NOSTRO accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at market to market rate as determined by Bangladesh Bank.

Foreign Currencies Translation :

Foreign currencies translations are converted into equivalent taka using the ruling exchange rate on the date of transactions. Foreign  currencies balances held in US dollar at the year end are translated into taka currency at the weighted average rate of inter bank market as determined by Bangladesh Bank. Balances held in foreign currencies other than US dollar are converted into mid vale of the selling and buying rate of the last transaction date of the year of the bank.

Related Finance Paper:

Popular Finance Paper:

Report on Ratio Analysis

A ratio is a way of comparing two or more quantities. Analyzing any company’s current ration,quick ratio,Debt-Equity ratio,Gross Margin percentage, Net Profit Margin,Operating Profit Margin, Depreciation Expense to Operating expense ration,Inventory Turnover, Times Interest Earned is Ration ana.....

Report on Dutch Bangla Bank Limited

1.1 Introduction: Bank is the important financial institution in the economy. The economic development of a country depends on the development of banking sector. Today’s modern banks are not only providing traditional banking services but also expanding many financial services. Foreign Exchange.....

Assignment on Capital Market of Bangladesh

Capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g.,.....

Assignment on Swot Analysis of Aarong Bangladesh

About Arong Today, few urban consumers will argue that Aarong is the local Mecca for deshi handicraft. Aarong’s product designs has brought consumer attention back to the products and styles that are indigenous to Bangladesh, its designers blending the traditional with the contemporary in a man.....

Internship Report on Credit Management of Shahjalal Islami Bank Limited

Executive Summary Banking is the backbone of national economy. It is a powerful medium to bring socio economic changes in a developing country like Bangladesh. As a part of its activity the banks provide short, medium and long term credits. It has to complete it’s screening process to offer cre.....