Publisher's Synopsis
This section is intended to provide minimum background and procedural guidelines to examiners responsible for evaluating a bank's foreign currency activities. Within individual banks, foreign currency money market and exchange trading operations may be combined or completely separate with regard to policies, procedures, reporting, and even dealing. However, they ultimately must be viewed together to evaluate liquidity and to insure compliance with overall bank objectives and risk management strategy. For the sake of brevity, this section discusses both functions as if they were performed by the same traders, processed by the same bookkeepers and managed by the same officers. Close coordination is required among examiners performing the foreign exchange, due from banks-time, nostro account, and funds management functions.
