International Currency and Banking Markets

Course aim

International Currency and Banking Markets aims to: 

• introduce students to the financial markets relevant to the conduct of international financial transactions and to the financial systems of the world’s major economies;
• provide students with an understanding of the key parity and no arbitrage relationships that hold in international financial markets;
• equip students with the tools and insights needed to analyse and measure the extent foreign exchange risk;
• explain the methods by which foreign exchange risk can be managed through the use of on and off balance sheet items including derivative products; and
• inform students of issues relevant to the financing and making of foreign investment decisions, including the impact of the introduction of exchange rate risk on the evaluation of capital projects.

Course content

The international financial environment, markets and instruments of international finance. Types and characteristics of the key financial markets affecting foreign exchange transactions; the spot, forward, eurocurrency and eurobond markets; the macroeconomic risk environment facing the firm; the impact of economic policy decisions on key international financial variables; the parity conditions; models of the exchange rate.
The identification, measurement and management of international financial risk at the level of the individual enterprise; the distinction between risk management and speculation in international finance; the use of forwards, futures, options, swaps and other derivatives in the risk management process; the foreign investment decision.

Textbook(s)

Moosa I A 2010, International Finance, 3rd edn, McGraw Hill, Sydney

Prerequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
ECON 1007	Macroeconomics

Corequisite(s)

Nil

Teaching method

Component	Duration
INTERNAL, CITY WEST
Lecture	2 hours x 13 weeks
Tutorial	1.5 hours x 12 weeks
EXTERNAL, CITY WEST, DISTANCE EDUCATION
External	x 13 weeks
INTERNAL, OFFSHORE, HONG KONG BAPTIST UNIVERSITY
Workshop	2.5 hours x 8 days
Tutorial	10 hours x across 14 weeks
INTERNAL, OFFSHORE, TAYLOR'S BUSINESS SCHOOL
Lecture	2 hours x 14 weeks
Tutorial	2 hours x 13 weeks

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment 1 - Discussion questions and practical exercises on early topics, Assignment 2 - Discussion questions and practical exercises on all topics, Examination, Group Presentation and Peer Critique - Class Presentation, Group Presentation and Peer Critique - Student groups to collaboratively research and prepare a presentation to their tutorial class together with a structured written critique of another student group presentation., Journal of FX market events - Students to maintain journal of current world events relevant to the course topics and submit in a business report format

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 3)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
Non-award tuition fees are set by the university. To determine the cost of this course, go to:
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Not all courses are available on all of the above bases, and students must check to ensure that they are permitted to enrol in a particular course.

* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.