International Cash Management Strategy

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Day 2: International Cash Management Tools

Description: This workshop builds upon the foundation course and introduces the important topics of foreign exchange, when and where to hold foreign currency accounts and an introduction to the major vehicles for managing cross-border liquidity. Exercises are used throughout to reinforce the concepts and practice their application.

Learning objectives:

• Learn how to read FX spreads and the tools used for managing FX exposure
• Review when to open foreign currency accounts and where to hold them
• Understand the major tools used for managing cross-border liquidity
• Evaluate the different liquidity management models
• Appreciate the complexities and issues around liquidity management

Prerequisites:

• A desire to know more about foreign exchange and the tools used for liquidity management. The most will be gained from this course if the introductory course "International Cash Management Basics" has already been taken as some of the concepts build off the basics.

Takeaways:

• Answer slides for the Group exercises
• seful sources for more information on International Cash Management

Tentative Course Agenda:

8:30am

INTRODUCTION

8:35am

BASICS OF FOREIGN EXCHANGE

• Why do cash managers need foreign exchange?
• Understanding how to read foreign exchange rates
  • Spot
  • Forwards
• FX premiums and discounts
• Tools for Managing FX Risk
  • Futures
  • Currency swaps
  • Balance sheet hedging
  • Options
• Herstatt risk
• Continuous Linked Settlement (CLS)

Exercise

10:15am

BREAK

10:30am

FOREIGN CURRENCY ACCOUNTS

• The need for foreign currency accounts
• When to open one
• Where to hold the FCY account
• Multicurrency accounts
• What to ask when opening an account
• Regulatory issues with FCY accounts

Group Exercise

12:00pm

LUNCH

1:00pm

LIQUIDITY MANAGEMENT TOOLS

• The theory of inter-company lending
  
• The techniques
  • Netting
  • Reinvoicing
  • Factoring
  • Leading and lagging
  • FX matching

2:30pm

BREAK

2:45pm

LIQUIDITY MANAGEMENT TOOLS (Cont.)

• Notional pooling
• Interest enhancement
• Cash concentration
• FX swaps

3:45pm

EXERCISE

4:30pm

CLOSE

Gain Continuing Education Credits

	CTP/CCM Recertification Credits International Cash Management Strategy is approved for up to 7 CTP/CCM recertification credits. Credit is earned at the rate of one credit per 50 minutes of treasury/cash management or finance-related session time, including questions and answers.
	CPE Credit The Association for Financial Professionals is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Eligible for up to 7.5 CPE Credits Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. Web site: www.nasba.org

For more information regarding administrative policies, including submitting a complaint, please contact  AFP at 301.907.2862 or by email at AFP@AFPonline.org.