Due to central bank of Egypt
direction and strategy toward using financial derivatives to hedge clients' and
banks' position specially for currencies and due to volatility in country's
currencies position and valuations over last year. It is essential for bankers
specially finance teams to acquire such knowledge of derivative types, usage,
it is related accounting treatments and valuation methodologies in order to
report and validate system output as well.
Recognize the types of financial derivatives and various products.
Understand derivatives accounting off / on balance sheet.
Assign the correct qualified derivatives for hedging.
List types of hedging and related accounting.
Overview on derivatives valuation.
·
Definition of a
derivatives.
·
Derivative terminologies
(Notional amounts - Underlying - initial net investment)
·
Examples of
derivatives.
·
Foreign currency
derivatives.
·
Non - deliverable forward
(NDF)
·
Interest rate swap
(IRS)
·
Forward deals vs. future
contracts.
·
Total return swap
(TRS)
·
Options (Put & Call
options)
·
Hedge accounting
overview
·
Hedged items general
requirements.
·
Derivative as hedging
instruments.
·
Currency position reporting
1- Financial
control teams.
2- Budgeting and performance
analysis teams.
