Commercial Banking

Foreign exchange (FX)

Foreign exchange (FX), also known as forex, involves the trading of currencies from different countries to facilitate global financial transactions and investments. This subject covers how the FX market operates as the largest and most liquid financial market in the world, influencing global trade and economic policies. Students will learn about exchange rate mechanisms, factors affecting currency values, risk management, and the use of derivatives in hedging foreign exchange risk. The course also explores the roles of market participants, including central banks, financial institutions, corporations, and individual traders, providing insights into trading strategies and regulatory frameworks governing the FX market.