Training on Reserves Management and Payment Risks_

Almost every country in the world holds foreign reserves which are assets of the central bank held in different reserve currencies, used to back its liabilities. Foreign exchange reserves held by the Central Bank are a major national asset and a primary tool of monetary and exchange rate policy. Understanding how reserves management works is important in today’s world. The regional payment systems objectives are to facilitate cross border payment and settlement between countries in the region. The system allows banks in member countries to transfer funds more easily within the region through their local RTGS.

The participants will gain the practical knowledge of all key processes and concepts in international payments and reserves management. They will also understand the role and functioning of SWIFT and CLS in management of reserves and get to grips with foreign exchange and currency principles in reserves management. The course will also provide an understanding of risk management in payment systems.

Target Participants

This course is ideal for staff in regional Central Banks dealing with reserves management and payment systems.

Course Objective

By the end of this course the participants will be able to:

• Gain the practical knowledge of all key processes and concepts in international payments and reserves management
• Learn about the various stages of low and high value payment process
• Understand the role and functioning of SWIFT and CLS in management of reserves
• Get to grips with foreign exchange and currency principles in reserves management
• Explore the mechanisms in clearing and settlement in reserves management
• Learn about liquidity management principles
• Gain the tools for managing all risks involved in reserves management
• Understand the legal and regulatory frameworks
• Explore the current market trends and challenges

Course Outline

• Introduction to Reserves Management
• Funding Reserves and the Cost of Holding Reserves
• Foreign Exchange Markets
• Liquidity Management
• Compliance & the Middle Office Operations
• Back Office Operations
• Risk Management in Reserves Management
• Foreign Exchange & Currency Principles
• Cross Border Retail Payments
• Alternative Payment Arrangements & Systems (Correspondent Banking, Hawala)
• Purpose & role of SWIFT and CLS in Reserves Management
• International Standards, Conventions & Principles in Reserves Management
• Financial Action Task Force (FATF)
• Anti-Money Laundering
• Global Clearing & Settlement
• Liquidity & Treasury management
• International trade facilitation
• Risk Management in Payment Systems
• Legal & Regulatory issues in Reserves Management and Payment Systems
• Current and future trend Reserves Management and Payment Systems

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group works and case studies.

Certification

Upon successful completion of this Training on Financial Markets, participants will be issued a Certificate of Course Completion.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.