For the student: The book simplifies complicated derivatives with Indian examples. For the treasury professional: It acts as a quick reference for FEMA limits and VaR models. For the entrepreneur: It teaches you how to protect your margins from currency volatility.
C. Jeevanandam’s is a seminal text for students and practitioners, blending the theoretical economics of foreign exchange with the practical procedures used by banks and international firms. The 17th edition (2020)
The book highlights the various types of risks associated with foreign exchange transactions, including:
A significantly expanded bank of solved numerical problems reflecting real-world volatility, helping students prepare for rigorous university and competitive exams. For the student: The book simplifies complicated derivatives
Modern techniques for managing corporate liquidity in multiple currencies. How to Effectively Use This Resource
: Understanding spot rates (immediate delivery) versus forward rates (future delivery) and the "bid-ask spread" is foundational for managing transaction costs. 2. Dimensions of Foreign Exchange Risk
A: Check the publication date (must be within the last 2 years). Look for references to "Rate of return" instead of "LIBOR." If it mentions "LIBOR" heavily, it is an old edition and obsolete for risk management. : Understanding the Balance of Payments
Foreign exchange risk, also known as currency risk, arises from fluctuations in exchange rates. It can affect businesses in various ways, including:
The book emphasizes that currency risk is not uniform. It categorizes exposure into three distinct types:
A: No, it is theoretical with practical numericals. It will teach you why to use a swap, but you will need a separate resource for Bloomberg terminal commands. International Monetary Systems
"Foreign Exchange and Risk Management" by C. Jeevanandam remains a gold standard for anyone serious about mastering international finance. Whether you are preparing for an exam or managing a corporate treasury, the insights provided in the latest editions offer a robust shield against the unpredictable waves of the global currency markets.
: Understanding the Balance of Payments , International Monetary Systems, and the fundamental mechanics of exchange rate determination.