The Ahmedabad CFA Association organized a seminar on 'Managing Forex Risk through Derivatives: A Few Case Studies' at the ICFAI Business School. Speakers for the seminar included Tushar Buch, AGM Head, SBI Treasury and Ramesh Mamodiya, deputy manager, SBI Treasury.
"The presentation on how to manage foreign exchange risk through derivatives by way of analysing a few case studies is being made with a view of helping chartered financial analysts (CFAs) understand what derivatives are and their benefits. Increasingly, we have observed that CFAs in Ahmedabad have not encountered their practical applicability," said Buch.
The seminar talked about practical usage of derivatives for hedging or managing interest and exchange rate movements. Case studies were taken up indicating actual derivative transactions done by corporates to hedge their actual exposures.
Members of Ahmedabad CFA Association agreed that given the current volatility in the market, hedging is a safe option and is very much needed in the currency market. Apart from the term 'Derivative', three main derivative products including future, swap and options were dealt in depth.
Later, a comparative analysis of risk coverage as well as various regulatory requirements for hedging were discussed.
