← Foreign Exchange (Forex) Products and Risk Management

Swaps and options: concepts and what Ethiopian rules allow

Module 03 / 5 · 60 min

Understand FX swaps, cross-currency swaps and vanilla options, and tell clients clearly which tools are available onshore today.

In this module you will learn to

Explain how an FX swap and a cross-currency swap work and who uses them
Read the payoff of a vanilla call or put option and its premium cost
Distinguish what the directives received allow from what is not yet available
Discuss offshore hedging for project loans within the external loan rules

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.