Wednesday, February 5, 2014

Beyond Capital inflows, Derivatives and Exchange rates

Today was the day when Conchita explained us the concepts involved in Foreign Exchange related international finance risk.

What was fascinating to understand was that while we knew about concept of capital inflow and outflow based on our economics classes, and while we now know certain aspects of derivatives and their usage, today, combining the entire diaspora of economics, derivatives and the foreign exchange rates, along with inflation and government policies, can actually create opportunities to earn money by arbitrage.

Somehow I didn't realize that we had a case to prepare for today, was when it was time to discuss the case, I was speechless :-(

Will need to make up for this one soon - not in terms of participation I mean, but to understand the case based on foreign exchange risk !!

By the way, by the look of it, I may finalize the latest update of my CV tonight :-)

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