FX risk, dealing and forwards

Module 03 / 5 · 70 min

Run the bank's foreign currency position within the NBE limit, price customer deals and forwards, and control the dealing room.

In this module you will learn to

Explain how the market-based FX regime works since July 2024 and what has changed since
Quote spot and cross rates and price customer FX deals
Compute the net open position and test it against the NBE limit
Estimate value at risk and explain the market risk capital link
Price a forward contract and apply dealing room controls

Built on

Erudite Africa course specification: Topic 1.g Treasury and Forex Management, Level 2 Intermediate (October 2026)
Erudite Africa: Training Module, Ethiopian Context, programme overview and regulatory register (October 2026)
National Bank of Ethiopia Proclamation No. 1359/2025 and NBE Monetary Policy Committee release No. 7 (13 July 2026)
NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, SBB/92/2024, SBB/95/2025, SBB/96/2025, NBE/INT/13/2026
NBE Risk Management Guidelines (May 2010)

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.