FX Specialist 1 case studies
FX Specialist 1 · Put your knowledge to work in context.
FX Specialist 1 is an entry-level credential for people who need to demonstrate working competence in foreign exchange: junior dealers and treasury analysts, bank operations and settlement staff, corporate treasurers who manage currency exposure, and compliance or audit professionals who review FX activity. It tests whether you can read a two-way quote, convert between quote conventions, price and value spot and forward deals, explain how swaps and FX derivatives behave, describe hedging choices and their trade-offs, and apply the regulatory and settlement discipline that surrounds every trade. The FX Specialist 1 case studies are 5 cases and about 2,926 words.
1Onshore–Offshore KRW Basis and Hedge Selection
A London-based emerging-markets fund holds a KRW 40bn receivable from a Korean exporter, due in 45 days. The fund has no onshore Seoul account and cannot post KRW collateral.
526 words, about 3 min2Broken-Date Forward for a USD Receivable
On 29 September a UK manufacturer learns it will receive USD 6,000,000 on 17 November from a US customer. Spot value is 1 October (T+2).
589 words, about 3 min3Cross-Currency Swap to Convert USD Debt to EUR
A US telecom company has just issued USD 250m of five-year fixed-rate notes at 5.25%. It wants EUR fixed-rate exposure because its largest division reports in EUR, and it enters a five-year cross-currency swap with a bank.
717 words, about 4 min4Synthetic Cross Rate and a Mispriced SGD/JPY Quote
A Singapore-based treasurer has USD 50m to convert into SGD and JPY for payments. The interbank market shows USD/SGD 1.3475/1.3480 and USD/JPY 151.20/151.25.
460 words, about 2 min5Backdating a Forward and Routing Around Sanctions
An FX salesperson at a Hong Kong bank manages a corporate client that generates USD 800m of annual FX flow. The client's treasury executed a six-month USD/CNH forward at 7.15.
634 words, about 3 min