Course Name

Protecting Financial Results from FX and Interest Rate Risks


May 20, 2024 - May 24, 2024

Schedule via Zoom:

May 20, 21, 23 & 24, 2024

Monday - Friday

1:00 - 5:00 PM 


Regular Rate:

Php 11,000

Early Eagle Rate:

Php 10,000

Valid Until:

May 06, 2024

Protecting Financial Results from FX and Interest Rate Risks


Financial results of companies could be adversely impacted by movements in foreign exchange rates and interest rates. For example, a large Philippine listed company recorded losses from foreign exchange equivalent to 11.4% of its Net Income before Tax. A large US bank in a matter of 48 hours had to close down due to massive withdrawals of its deposits after depositors were made aware of significant losses on its bond portfolio arising from higher interest rates. This course is designed for participants to gain confidence and competency to protect financial results from market changes of foreign exchange rates and interest rates.

This course will show how to identify and measure foreign exchange and interest rate exposures that are created in the normal course of operations of a company, how to measure the risk of potential loss arising from the exposures, and how to manage these risks using foreign exchange and interest rate products. Illustration of risks will be discussed from the viewpoint of both the corporate side (who will require FX and interest rate products to hedge their risks) and the bank side (who will provide such hedging products to their clients). 

Who should attend

1.  Finance and treasury officers of companies who wish to acquire a very good understanding of how exposures in foreign exchange and interest rates occur (such as when borrowing in foreign currency or when issuing debt securities), monitored and controlled; and how to manage these risks using various products and techniques;

2. Commercial banking, corporate banking and branch managers with client relationship responsibilities who wish to have a good understanding of the FX and interest rates risks their clients would have and of the FX and interest rate products that they can provide their clients to assist them in managing such risks, and being aware of the credit risk implications of each product; and 

3. Officers in banks involved in the processing and controlling of credit risks arising from FX and interest rate transactions with clients.

The program is designed for participants to acquire good understanding of:

1. How exposures in foreign exchange and interest rates in a company are generated, identified, measured and reported; and how they could impact profitability and capital position of the company

2. Various foreign exchange and interest rate products to be used for managing foreign exchange and interest rates risks

3. The risks between counterparties when transacting foreign exchange or interest rates products

4. Hedging  FX or interest rate exposures

5. Controlling counterparty risks from transactions in FX and Interest Rate products

Module 1

1. Course Introduction

2. Concept of Exposures and Risks

3. Foreign Exchange Exposure and Risk

4. Components of a FX Transaction

5. Foreign Exchange Rate Quotation

6. The FX Markets -Geography, Types

7. Factors Affecting FX rates

8. Types of FX Transactions

9. Forward Rate, Forward Points, Non-Delivery Forwards

10. Review of FX Transactions, Markets

Module 2

1. FX Swaps

2. FX Options

3. Review of FX Swaps and Options

4. Managing FX Exposures Using various FX Products

Module 3

1. Interest Rate Exposures and Risks

2. Interest Rate Gaps

3. Interest Rate and Liquidity Gaps

4. Factors Affecting Interest Rates

5. Monetary Policy Framework

6. Interest Rate Products: Bonds, Repos, IRS, CCS and related market risks

7. Review of exposures in Interest rates and related risks

8. Managing Interest Rate Exposures using loans/deposit, bonds, repo, IRS, CCS

Module 4

1.Counterparty Risks in FX & IR deals

  -Pre-Settlement & at Settlement date

2. Limits to Control Market and Counterparty Risks of various FX & IR transactions/positions

3. Review Counterparty risks and limits to control Market and Counterparty risks in various FX & IR transactions

4. Case Studies on measuring FX and Interest Rate Exposures, managing the related risks and recommending hedging measures, if warranted.

5. Closing

Mr. Clemente Escaño is an in-house trainer at large banks and has conducted training at official institutions such as the South East Asian Central Banks Training Centre (SEACEN), Bank  Indonesia, Institute of Banking and Finance, Singapore; financial institutions; and large corporations in Singapore, Manila, Jakarta, Kuala Lumpur. He is also a Consultant on financial market products, services, risk management, financial markets group organizational structure and policies and human resource development.

Prior to this, he worked at senior management levels in Citibank Manila, Hong Kong, Singapore, Bank of America, Union Bank of Switzerland, ABN AMRO Bank, Jakarta, Indonesia. 

He was the founding Director of Singapore International Monetary Exchange (SIMEX). He also served as Director, Institute of Banking and Finance, Singapore, and Chairman, Singapore Foreign Exchange Market Committee, to name a few. 

Mr. Escaño completed his Bachelor's degree in Economics from Xavier University and Master's degree in Industrial Economics from University of Asia and the Pacific. He is also a Certified Reiss Profile Master.

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