A.V. Rajwade, H.G. Desai

The globalization and liberalization of the Indian economy since 1991 has led to an exponential rise in the currency exposures of Indian businesses. Increasing exchange rate volatility has made Indian business entities more vulnerable to the risks arising out of not only revenue and capital account transactions but also economic exposures, which often arise without direct foreign currency dealings. In such circumstances, it has become vital for nance managers to understand the functioning of currency markets. With banks o ering various hedging instruments to manage the risk, it is equally important to understand when and how to use these instruments, especially complex, structured derivative products. The book provides a comprehensive understanding of the functioning of the forex markets, the risks and objectives pertinent to forex exposures, the derivative instruments available for hedging, as well as an insight into  some of the disputes between banks and their counterparties in relation to mis-selling of derivatives as hedging alternatives. Apart from covering the risk management issues, the book touches upon the relevant accounting and regulatory aspects in the treatment of forex derivatives. The book has the following sections: Section I: Foreign Exchange Market Section II: Cross Border Finance Section III: Derivatives Section IV: Risk Management and Accounting The book would be found especially valuable by Finance/Treasury professionals in banks, companies and auditors. It is also a useful primer for managers in other functional areas like purchase, sales, commercial, etc. who are involved in foreign exchange transactions. About the Authors Mr. A. V. Rajwade, Chairman of A.V.Rajwade & Co. Pvt. Ltd., is widely regarded as a pioneer in the eld of foreign exchange and interest rate risk management in the Indian nancial markets. He is highly  respected as a consultant, columnist and author of books on the subject of treasury risk management. Mr. Rajwade has been a member of various committees appointed by the Reserve Bank of India including the committees on Forex Markets and Capital Account Convertibility. In his career he has conducted over 300 training programs on risk management and related topics for corporate/bank executives. He was a visiting faculty at IIM, Ahmedabad. He has also acted as an expert witness in disputes involving complex derivatives, being arbitrated in London and Switzerland. Mr. H. G. Desai is a risk management expert. A rank holder Chartered Accountant, he has been with the company since its inception in 1981. As a currency and risk management advisor, he is well-known in the corporate world. He advises and undertakes assignments for a number of corporates in India. He has written columns on forex markets for Business Standard and Deccan Herald. He too has conducted over 400 training programs on risk management, use of derivatives and accounting standards. Besides, he is a visiting faculty at several management institutes, including Indian Institute of Management, Indore. Expert’s View This is a terri c book and Mr Rajwade in his unique style has covered the entire spectrum from currency, ,interest rates to global nance and currency trading. The book is very useful as it gives step by step guidance for actual situations like Syndication of Foreign Currency loans. The book is a one stop shop on the subject for all-students, academics, professionals and of course Bankers. It is indeed a treatise on the subject Mr. Pratip Chaudhuri Former Chairman, State Bank of India.