Proper valuation of foreign currency (FX) cash flows is critical to assessing the effect of currency exchange on your company’s forecasted cash plan. Equally important is ensuring all underlying currency exposures are identified in order to determine the total risk to your company of adverse exchange rate fluctuations. In this course you learn how to translate the exchange value of projected FX cash flows and to recognize currency market risk in your underlying business operations.

In the case presented, a business has contracted export sales for one year denominated in the local currency of the customer. We work through and calculate the proper valuation of the projected FX cash flows taking into account both current and future FX rates as priced in the global currency markets. Also provided are tips to identify currency market risk within your company inherent when businesses source or sell in the global marketplace.

This course provides the know-how to apply the essential FX valuation calculations and market protocols useful for Corporate Treasury and Finance for cash planning and FX risk management purposes.