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Erudite AfricaCenter of Excellence
← Foreign Exchange (Forex) Products and Risk Management

Mapping a client's FX exposure

Module 01 / 5 · 65 min · Free preview

Find, measure and explain the foreign exchange risk inside a corporate customer's cash flows and balance sheet under Ethiopia's market-based regime.

In this module you will learn to

  • Explain the post-2024 FX rules that shape what customers can and cannot do
  • Separate transaction, translation and economic exposure in a corporate client
  • Build a currency cash flow map and compute net exposure by period
  • Measure the effect of the 2024 depreciation on FX debt held on a balance sheet
  • Quantify the running case exposure under several rate outcomes

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.