DAIBB Syllabus – International Trade and Foreign Exchange

Syllabus of Diplomaed Associate of the Institute of Bankers, Bangladesh (DAIBB):

Paper 3: International Trade and Foreign Exchange:

Full Marks: 100

  

Module A: An Overview of Foreign Trade:

• Importance and Trends of International Trade
• Composition and Trends of Bangladesh Foreign Trade
• The Role of WTO for Removal of Tariff and Non-Tariff Barriers
• Inco-Terms Terms Used in the International Trade
• Payments and Clearing Unions—EU, NAFTA, LAFTA, ACU
• Balance of Trade and Balance of Payments
• Salient Features of Export and Import Policies of Bangladesh
• Incentives Including GSP for Exports from Bangladesh

Module B: General Knowledge Regarding:

• International Organizations Like IMF, World Bank, IFC, IDA, ADB, Islamic Development Bank (IDB), etc.

Module C: Role of Banks in Foreign Trade:

• Methods of Settlement of Payments for International Trade
• Cross Border Fund Transfer Systems Including SWIFT and Other Forms of Electronic Fund Transfers
• Documents Used in International Trade and Their Scrutiny by the Banks
• Main Features of Uniform Customs and Practice for Documentary Credits (UCPDC) (ICC Publication No.600)
• Main Features Uniform Rules for Collection (ICC Publication No. URC 522)
• Arrangement for Settlement of International Payments: Correspondence Relationship, Nostro And Vostro Accounts

Module D: Protection against Risk in Foreign Trade:

• Precautions against Common Frauds and Forgeries
• Protection against Political and Economic Risks and
• Export Credit Guarantee Schemes in Force in Bangladesh

Module E: Exchange Control Regulations:

• Salient Features of Foreign Exchange Regulation Act, 1947
• Exchange Control Regulations Regarding Forex Operation by Authorised Foreign Exchange Dealers
• Foreign Investment in Bangladesh Including Export Processing Zones
• Special Provisions in the Anti-Money Laundering Act, 2008 Affecting International Payments

Module F: Exchange Rates:

• Changing Pattern of Exchange Rates since World War I
• Factors Affecting Exchange Rates
• Various Types of Exchange Rates
• Management of Exchange Rates in Bangladesh

Module G: Foreign Exchange Markets:

• In Bangladesh
• Overseas and
• Euro-Currency Market

Module H: Dealing In Foreign Exchange:

• Foreign Exchange Positions
• Trading in Foreign Exchange
• Offshore Banking Operations
• Lending and Borrowing in Foreign Currencies and
• Derivatives in Foreign Currencies

Module I: Financing of Foreign Trade in Bangladesh:

• Various Forms of Financing Exports From and Imports into Bangladesh
• Arrangements and Forms of Export from and Imports into Bangladesh
• Role of Bangladesh Bank Regarding Export and Import Finance

Module J: Exchange Arithmetic:

• Selection of Buying and Selling Rates for Spot and Forward Transactions
• Calculation for Buying and Selling Rates—Spot, Forward and SWAP—for Export and Import Bills, Investment and Other Miscellaneous Payments.

References/ Books:

• Ali, Syed Ashraf: Foreign Exchange and Financing and Risk Management, 2nd Edition, Mowla Brothers (Dhaka, Bangladesh).
• Andly, K. K. : Foreign Exchange.
• Awasthi, G. D. Trade Payments (Academy of Business Studies, Delhi, India).
• Keskamat. V. V. : Foreign Exchange An Introduction.
• Lall, G. S. Finance of Foreign Trade and Foreign Exchange (HPJ Kappor, New Delhi.).
• Verghese, S. K. : Foreign Exchange and Financing of Foreign Trade.
• Watson, A. J. W. : Finance of International Trade (Institute of Bankers, London).
• Whiting, D. P. : Finance of International Trade (McDonald & Evans).
• Wheble B. S. : Uniform Rules for Collection (Chartered Institute of Bankers, London).