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Course Details

Foreign Exchange Basics

Accreditation Number: 115398851

2025

Last updated December 2025

Approval

Duration

1 Day

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This course provides intensive basic education on the tools and activities used in the global financial markets and international foreign exchange. It also focuses on the current market situation and offers insights based on lessons learned from the 2007-2009 financial crisis, in addition to the latest market developments.

By the end of the training program, participants will be able to:

• Distinguish between three types of financial markets: foreign exchange, capital markets.

• Identify exchange rates and ISO currency codes.

• Differentiate between base and variable currencies, bid and ask prices, spot rates, and forward rates.

• Understand the contents of foreign exchange contracts, spot and forward.

• Participate in the foreign exchange market.

• Gain an overview of financial markets and their specific instruments.

Course Curriculum

4 Lectures

Module 1 - Money and Foreign Exchange Markets

Market size.
Issuance of treasury instruments, repurchase agreements, bank acceptances, and commercial paper.
Forward exchange rates for interest rates and foreign currencies.
Effective yields when adjusting currency exposure risks.
Hedging and interest rate parity.
Current market conditions.
Risk returns and spreads in major financial markets and currency expectations.

Module 2 - Role of Central Banks in the Financial System

Overview of central banks (Federal Reserve, European Central Bank, People's Bank of China, Bank of Japan, Bank of England).
Central bank budget structure.
Central bank asset and liability characteristics.
Lender of last resort.
Summary of open market operations.
Management of foreign exchange reserves and exchange rate policy.

Module 3 - Foreign Exchange Market Characteristics

Market size, fluctuations, participants, and major currencies.
Regional distribution of when and where most foreign exchange trading occurs.
Historical background of the foreign exchange market today.
Global foreign exchange reserves.

Module 4 - Global Regulatory Framework

Overview of Basel III framework and its key provisions related to risks (market, credit, liquidity, operational).
Regular risk management and stress testing.
Market abuse investigation systems.
ISO currency code.
Base and variable currency.
Bid and ask prices, cross rates.