UNIT I: Introduction International Banking Vis-à-vis Domestic Banking–Foreign Trade Financing – International Financial Transactions : Lending and Borrowing across borders.

UNIT II: Foreign Exchange Market Rate and Currency – Exchange rate determination under Fixed Exchange Rate and Floating Exchange Rate regimes- Determination of Exchange Rates : Spot and Forward- Basic Exchange Arithmetic-Forward Cover and Hedging.

UNIT III: International Financial Institutions Definition-Functions-World Bank-IMF-Asian Development Bank – International Financial Corporation – International Development Association.

UNIT IV: Sources of Exchange Sources of Foreign Exchange – Export Earnings – Invisible Export Earnings – Role of NRI Remittances – Foreign Direct Investment – Foreign Institutional Investment – External Commercial Borrowings – Global Depository Receipts – Off shore Borrowings.

UNIT V: Exchange Management Foreign Exchange Management – Composition of Foreign Exchange Reserves : Foreign Currencies-Gold and SDR – Current Account Convertibility – Capital Account Convertibility and Precautions