Forex In Banking System: Abhyudaya Bank

Present By Gaurav H. Rane Roll No.-38 Div.-A (MMS)

OBJECTIVES To learn and understand the concept of forex To know the meaning of the word treasury To understand the concept of Integrated Treasury To know the financial market To know the dealing platforms of forex To understand the risk involved in forex To understand how to limit risk (hedging)

INTRODUCTION
Role of Banks Economic Development of A Country Mobilization Of Resources -

COMPANY PROFILE: ABHYUDAYA CO-OPERATIVE BANK LTD.

In January 1964 as a Co-operative Credit society with a share capital of a merely Rs.5,000/- held by 83 members Multi-State Scheduled Urban Co-op. Bank

FOREIGN EXCHANGE SERVICES

Foreign Currency (FC) Account Exchange Earners Foreign Currency Account
(EEFC Account) Foreign Currency Non-resident (FCNR) Account Resident Foreign Currency (RFC) Account-

Facilities available for Exporters:

Export Packing Credit:
Post Shipment Finance: Other Facilities Available for Exporters:

Facilities available for Importers:

FINANCIAL MARKET
Introduction Definition In economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them.

Types of Financial Markets Capital market Stock Market Bond Market Commodity Market Money Market Derivatives Market Futures Market Insurance Market Foreign Exchange Market-

FOREX MARKET
Introduction Foreign Exchange  Fixed Exchange Rate  Floating Exchange Rate

Factors Affecting Exchange Rate

Balance Of Payment (BOP): Strength of the Economy: Interest Rate: Central Banks Intervention: Speculation: Exchange Control: Inflation Rate:

Market Participants in Forex Market

Banks Commercial Companies Central banks Forex Fixing Hedge Funds as Speculators Investment Management Firms Retail Foreign Exchange Traders Non-Bank Foreign Exchange Companies Money Transfer/Remittance Companies and Bureau De Changes -

Structure of Forex Market in India

Reserve Bank Of India (RBI): Authorized Dealers (AD): Money Changers: Accredited Brokers:

FOREIGN TREASURY
Introduction Forex Treasury Operations :
 Front Office Operations  Mid Office Operations  Back Office Transactions -

 Nostro Account Vostro Account Net Open Position Limit (NOPL) and Aggregate Gap Limit (AGL) R-Return Society for Worldwide Interbank Financial Telecommunication (SWIFT) -

Foreign Exchange Quotation

Bid Price and Ask Price:
Quote is in US $ 1.8102 and 1.8450 per 1 This is the buying and selling rate of First Number i.e. 1.8102 is his Bid Rate. Trader is ready to pay 1.8102 $ to buy a . This is his dollar quote to buy Pound (Buy One Pound) Second Number i.e. 1.8450 is his Ask Rate or Offer Rate.

Direct and Indirect Quote:

Foreign Exchange Transactions :

Merchant Transactions Interbank Trading Transactions Funding & Merchant Cover Transactions -

Foreign Exchange Trading :

Spot Rate (T+2) Cash/Ready/TOD (T+0) TOM (T+1) Forward Rate (T+3 And More) Card Rate -

CONCLUSION

Thank you !!