forex banking sphere

sunandaC

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forex banking sphere

Banks will see a rise in the number of office cabins falling vacant in the coming years as senior employees across the sector retire with high coincidence. Some lenders have even decided to recruit laterally to fill vacancies as they come up. In the not-so-popular forex banking sphere, this trend could spell bright chances for M.B.A graduates to become dealers, management executives or even consultants.

Mr V. Balasubramanian, Assistant General Manager – International Banking, State Bank of India, spoke to M.B.A students at J.N.N Institute of Technology near Chennai in a BL Club guest lecture organised by Business Line and presenting sponsor, Central Bank of India. He said the global forex market generates a daily turnover of $3.2 trillion, 35 times the money spun by the New York Stock Exchange, and daily volumes ranged at about ten times that of world equity markets.

Round-the-clock operations of the forex market, unlike the domestic equity trade which has fixed timings, exposes it to shocks from events across the world. To illustrate the impact of global events on the rupee-dollar balance, he took the example of Greece. “Greece borrowed excessively; tax evasion was high in the country. If Greece is unable to meet debt obligations, it goes down. So will other countries in the Euzo zone. To prevent this, Euro zone leaders agreed to persuade bondholders to take 50 per cent losses on Greek debt. The result here is that the rupee gained by 78 paise.”

He recounted a closer-to-home example of the rupee spurting in 2009, when the UPA won the elections, indicating a stable government, sending the currency up to Rs 48.32 vis-a-vis the dollar.

The RBI move to allow banks to set their own savings bank rates will unlock about Rs 14.68 lakh crore from the vaults. Even a 1 percentage point increase uniformly will see Rs 14,680 crore flowing into the economy.

This, he said, will not dent the net income margin of the banks as they will reflexively raise the advance rates. This will keep the liquidity from rising as the corporates will be more judicious in borrowing with a hike in lending rates, he said.

The Chairman of the Institution, Mr Jayachandran, was present at the event, along with the Principal Dr Vemuri Lakshminarayana
 

rosemarry2

MP Guru
forex banking sphere

Banks will see a rise in the number of office cabins falling vacant in the coming years as senior employees across the sector retire with high coincidence. Some lenders have even decided to recruit laterally to fill vacancies as they come up. In the not-so-popular forex banking sphere, this trend could spell bright chances for M.B.A graduates to become dealers, management executives or even consultants.

Mr V. Balasubramanian, Assistant General Manager – International Banking, State Bank of India, spoke to M.B.A students at J.N.N Institute of Technology near Chennai in a BL Club guest lecture organised by Business Line and presenting sponsor, Central Bank of India. He said the global forex market generates a daily turnover of $3.2 trillion, 35 times the money spun by the New York Stock Exchange, and daily volumes ranged at about ten times that of world equity markets.

Round-the-clock operations of the forex market, unlike the domestic equity trade which has fixed timings, exposes it to shocks from events across the world. To illustrate the impact of global events on the rupee-dollar balance, he took the example of Greece. “Greece borrowed excessively; tax evasion was high in the country. If Greece is unable to meet debt obligations, it goes down. So will other countries in the Euzo zone. To prevent this, Euro zone leaders agreed to persuade bondholders to take 50 per cent losses on Greek debt. The result here is that the rupee gained by 78 paise.”

He recounted a closer-to-home example of the rupee spurting in 2009, when the UPA won the elections, indicating a stable government, sending the currency up to Rs 48.32 vis-a-vis the dollar.

The RBI move to allow banks to set their own savings bank rates will unlock about Rs 14.68 lakh crore from the vaults. Even a 1 percentage point increase uniformly will see Rs 14,680 crore flowing into the economy.

This, he said, will not dent the net income margin of the banks as they will reflexively raise the advance rates. This will keep the liquidity from rising as the corporates will be more judicious in borrowing with a hike in lending rates, he said.

The Chairman of the Institution, Mr Jayachandran, was present at the event, along with the Principal Dr Vemuri Lakshminarayana

Hey dear,

Here I am uploading Foreign Exchange Intervention and the Banking System Balance Sheet, so please download and check it.
 

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