Brief Introduction
In recent decades, international trade in goods and financial services has become increasingly important. To facilitate such trade, many banking institutions have also become international.
The foreign exchange market (currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centres around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock.
The foreign exchange market determines the relative value of different currencies.
The foreign exchange market assists international trade and investment by enabling currency conversion, for example, it permits a business in Nigeria to import goods from European union member states especially Eurozone members, and pay Euros.
Ever through its income is in Nigeria. It also supports direct speculation in the value of currencies and the carry trade, speculation based on the interest rate differential between two currencies.
Table of Contents
Title Page ii
Approval Page iii
Certification iv
Dedication vi
Acknowledgments vii
Abstract viii
Table of Contents ix
CHAPTER ONE
Introduction
- Background of the study 1
- Statement of Problem 7
- Objectives of the study 7
- Research Questions 8
- Hypothesis 9
- Significance of the Study 10
- Limitation of the study 10
- Definition of Terms 11
CHAPTER TWO
Literature Review
2.1 The effect of Foreign Exchange and International Trade on Bank Profitability 13
2.2 Foreign Exchange Market 17
2.3 Foreign Currency Exposure of a Commercial bank 22
2.4 Exchange Rate Volatility 23
2.5 Foreign Exchange and International Trade Risk management 24
2.6 Foreign exchange and International Trade Risk 27
2.7 Foreign Exchange and International Trade Risk and Commercial Bank 28
2.8 Central Banks Role in Foreign Exchange Risk Management 32
2.9 Foreign Exchange and International Trade Risk and its Association with other types of Risks. 33
CHAPTER THREE
3.1 Research Design and Method 35
3.2 Research Design 35
3.3 Research Population and Sample 36
3.4 Sampling Technique 36
3.5 Measuring Instrument 37
3.6 Method of Data Collection 37
3.7 Method of Data Analysis 38
CHAPTER FOUR
Data Analysis and Result 40
4.1 Data Analysis 40
CHAPTER FIVE
Summary of Findings Conclusion and Recommendation
5.1 Summary of Findings 46
5.2 Conclusion 47
5.3 Recommendation 49
Bibliography
Appendix
