Published Paper Details:

The purpose of this article is to understand the history and concept of foreign exchange transactions in a better way and to get to know about the various types of risks which are pending to banks linked with foreign exchange transactions and, how these commercial banks delay that risk by modifying or reducing the loss. It mainly focuses on the various kinds of risks that the banks face and what are the ways by which these commercial banks can prevent those risks associated with foreign exchange. Then with reference to two Indian banks- one private and one government, it has been briefly discussed that how banks in India prefer or rather, how a particular type of risk management technique is more applicable to Indian banks as compared to the rest. It starts with discussing in detail, what the Distant Conversation marketplace is and how it has evolved over the years, the different kinds of transactions- long term and short term that happen, the function that banks play in it and how they manage the various risks associated with foreign exchange transactions when the exchange rates of a currency pair keep changing by the minute.