FOREIGN TRADE SETTLEMENTS PRACTICE 2400-EM3POM

. Risk origin and risk of exporter in the export transactions; Domestic and foreign risks. Risk management and the ways of its estimation - introduction
2. Basic elements of the foreign trade contract
3. Foreign trade settlements – introduction: unconditional and conditional settlements, interbank settlements: NOSTRO and LORO accounts, interbank payment orders transferring system, foreign exchange regulations related to foreign trade settlements
4. Cheque, payment order and bill of exchange in the foreign trade settlements
5. Documentary collection: definition, forms and payment procedures; documentary collection from importer’s and exporter’s points of view.
6. Letter of credit (L/C): definition, forms, payment procedures and cost of the L/C; letter of credit from importer’s and exporter’s points of view, documents to be presented
7. Factoring and forfaiting in the foreign trade
8. Banking guarantees of foreign payments: forms of bank guarantees, re-guarantees, stand-by letters of credit
9. Other forms of securing export payments: application and forms of export insurances
10. FX risk: transaction and economic risk, FX risk estimation, FX risk impact on company’s financial results
11. Hedge against FX risk: internal and external strategies, use of derivatives: futures, options (complex option strategies included), FX swaps