← Erudite Africa Center of ExcellenceBank and MFISchool of Banking FundamentalsIntermediate
Foreign Exchange (Forex) Products and Risk Management
Analyse a corporate client's FX exposure, price a birr forward, propose a hedge and control the bank's own risks
Advise Ethiopian importers, exporters and investors on FX risk under the post-2024 regime, from exposure mapping and forward pricing to a full hedging proposal for a pharmaceutical importer.
Start the course
0 of 5 modules completed
What you will be able to do
- Analyse a corporate customer's FX exposure and propose a hedging strategy
- Price forwards and explain swaps and options conceptually, within what Ethiopian rules allow
- Manage the credit, market and conduct risks of FX products for the bank
- Explain rate expectations to clients using NBE, IMF and market data
- For
- FX sales and treasury sales staff, corporate relationship managers and risk staff in Ethiopian banks with some FX experience, or who have completed the Level 1 FX course. Completing the trade finance and international banking course (1.c) is recommended.
- Study time
- About 6 hours online, in 5 modules (24 hours in the classroom version)
- Each module
- Short lessons, animated visuals, Ethiopian examples, decisions to make, NBE rules and worked calculations, then a quiz
- Assessment
- A 20-question final exam; pass mark 70%
- Certificate
- Erudite Africa Center of Excellence certificate of completion
- Access
- Module 1 free for registered users; the full course, exam and certificate for subscribers
The 5 modules
- Module 01Free previewMapping a client's FX exposureFind, measure and explain the foreign exchange risk inside a corporate customer's cash flows and balance sheet under Ethiopia's market-based regime.6 lessons · 65 min · quiz
- Module 02Forwards: pricing, documentation and settlementPrice a birr forward from interest rate parity, turn it into a client rate, and document and settle it correctly.6 lessons · 70 min · quiz
- Module 03Swaps and options: concepts and what Ethiopian rules allowUnderstand FX swaps, cross-currency swaps and vanilla options, and tell clients clearly which tools are available onshore today.6 lessons · 60 min · quiz
- Module 04Hedging strategy, policy and market outlookDesign a corporate hedging policy, choose hedge ratios that balance cost and protection, and explain rate expectations responsibly.6 lessons · 65 min · quiz
- Module 05Bank-side risk and the capstone hedging proposalControl the credit, market and conduct risks the bank takes when it sells FX products, then present a complete hedging proposal for the running case.5 lessons · 70 min · quiz
- Officer simulationA week as FX sales officer at Bank A, head office treasury sales deskWork as fx sales officer: 11 real-life items, decisions with consequences and a hand-over note. Pass with 70% to qualify for the certificate.
- Final examFinal exam and certificate20 applied questions across all 5 modules. Pass with 70% to download your certificate.
Built on
- Erudite Africa course specification: 1.l Foreign Exchange (Forex) Products and Risk Management, Level 2 Intermediate (October 2026)
- Erudite Africa: Ethiopian Context programme overview and regulatory register (October 2026)
- NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, SBB/96/2025
- National Bank of Ethiopia Proclamation No. 1359/2025
- NBE Monetary Policy Committee meeting No. 7 press release (13 July 2026)
- IFRS 9 Financial Instruments (hedge accounting overview)
Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.