Hans Redeker, Global Head of Foreign Exchange Strategy at BNP Paribas, number one banking group in the euro zone, gave an overview today of the G7 economies and their impact on foreign exchange rates in Abu Dhabi.
The ‘Breakfast Conference’ - “Foreign Exchange & Interest rate Outlook and Flexible Hedging” was organized by BNP Paribas in Abu Dhabi Sheraton for the Corporate and Private clients to appraise them of the prevailing situation in the investment world in the context of volatile currency markets.
The focus of the presentation was on the U.S Dollar and the reason for its erratic movements in the recent past against other major global currencies. The presentation provided Corporate CFO’s and high net worth individuals and other investors an overview of the market, the market consensus, major currency themes for 2006, global risk assessment focuses on the US, and the effect of political outcomes on the currency markets.
Mr. Redeker also provided thorough technical analyses on the predicted movement of major currencies against the US. The presentation touched upon the interesting aspects of the growing demand from China & Asia, Volatility in Oil markets, U.S Housing markets slowdown, Late Hiking cycle in the US, Central Banks Reserve Allocation, Global yields, US macro policy and bond markets.
As part of the presentation, BNP Paribas’ Regional Head of Fixed Income Sales, Shiva Subramaniam, presented clients with Flexible hedging on FX and Interest rate derivatives.
“Choose forward” as Shiva calls the product provides the much-needed flexibility to the Corporates, who have to take a relatively long term view on the currencies and Interest rate markets, without jeopardising their profitability. These flexible hedging products not only help the companies to reduce the volatility of projected earnings but also provide them an opportunity to unlimited benefit from favourable market moves.
“Accounting wise these products have a much more straightforward application under hedge accounting for both IAS 39 and FAS 133,” he added.
Michael Pereira, Country Head, BNP Paribas UAE, said BNP Paribas has been operating in the Gulf for over 30 years through a network of 6 commercial branches (Abu Dhabi, Bahrain, Doha, Dubai, Kuwait & Riyadh), serving the needs of institutional, corporate and individual clients in the GCC. The bank has resident expertise in the fields of Trade Finance, Private Banking, Investment Banking, Asset Management, Project/ Structured Finance, Equity Derivatives, Treasury Management and Islamic Banking.
He added, “In the U.A.E, the bank has been closely associated with financing the trade flows within the region and has been at the forefront in introducing trade and treasury solutions and e-banking platforms to its clients. The bank has also launched private banking services targeted towards investment products as well as core banking services”.
BNP Paribas is one of the pioneers in commercial and corporate banking, trade finance, Islamic banking and corporate finance in the Middle East. The bank has been operating in the Gulf for over 30 years through a network of four commercial branches situated in Abu Dhabi, Bahrain, Doha and Dubai and has opened branches in Riyadh and Kuwait in 2005.