Forex Management ppt

Final Term Dissertation

Project Head

• Dr. Rajeshwar Nath

Students Group Member• Pankaj Kumar• Jiwant Kumar• Kamaljit Singha• Jitendra singh

chauhan• Amit Kumar• Sarad Tiwari• Shalini Tripathi • Seema

Forex ManagementScope of Forex reserve utilization for the infrastructure

Problem of Forex

• Classical method of foreign exchange management.

• Less diversification.• Cost associated with foreign exchange.• Forex risk management.

Largest Foreign Reserves in 2009

China

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Euroz

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Russia

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Hon

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Brazil

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e100.2

2273

1019

531 429 321 281 254 233 233 184 182

Foreign Reserves

CURRENT FOREX RESERVE OF INDIA

Dollar index..

Project Objective:

To explore

The prospect of utilizing Forex reserve in Infrastructural projects

How diversification will help in managing Forex reserve

The possibility of better balance of payment position

Realistic & compliance approach

Research Methodology

• Exploratory• Data Collection:

1. Secondary

2. Primary

Hypothesis

• Null Hypothesis

Utilization of Forex reserve in infrastructure project will not help the country in growth and the gap will not be compensated by further boost in the FDI inflow in the country

• Alternative Hypothesis

Utilization of Forex reserve in infrastructure project will help the country in growth and the gap will not be compensated by further boost in the FDI inflow in the country

Statistical Tools

• Correlation• Regression• Standard deviation• Covariance• Hypothesis Testing

Tentative outcome

• Expenditure of infrastructure is a boost for Export and FDI inflow

• Boost in export will increase the forex of India

• Greater inflow of FDI will increase the forex reserve of the country

Cont...

• India Foreign exchange reserve need revamp.

• Surplus foreign exchange is in our treasury

• There is a positive relationship between infrastructure expenditure and flow of foreign exchange reserves

Reference

• Reserve bank of India • Security and Exchange Board of India • Foreign Exchange Promotion Board • Economic Survey 2009 • Publication Division of India • Web sites and Books

Headway

Data of relevance

• Foreign Exchange Flow , Reserves, Portfolio Composition

Related material

• Risk Management Theories, Developed World Reserves, Rule And Regulation