Bachelor
2026/2027
International Finance
Type:
Elective course (Economics and Data Science)
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
3 year, 3 module
Online hours:
16
Open to:
students of one campus
Language:
English
ECTS credits:
3
Contact hours:
30
Course Syllabus
Abstract
This course follows the course Financial Economics and provides a deeper understanding of international financial markets and exchange rate determination. We will discuss who are the main players in the foreign exchange market, what are the major instruments, and what is the structure of these markets. We will study the major models of exchange rate determination and look into the main determinants of foreign exchange fluctuations. We will study currency investment strategies, such as the carry trade, currency momentum and value strategies. We will discuss empirical evidence of profitability and risks of these strategies. We will also talk about the main mechanisms of currency hedging.
Prerequisite courses:
Macroeconomics - information in Macroeconomics will enable understanding of the interdependce of money supply, interest rates and inflation.
Financial Economics - concepts covered in Financial Economics are crucial for Internation Finance, namely: basic stock and bond valuation, factor models, derivative instruments types and pricing
Learning Objectives
- The aim of the course is to familiarize students with the foreign exchange market, the dynamics of exchange rates and factors affecting exchange rates. Students will learn the most popular currency investment strategies and currency risk management techniques.
Expected Learning Outcomes
- Explain different types of exchange rate risk and ways firms manage exchange rate risk
- Use exchange rates to calculate and compare returns on assets denominated in different currencies
- Apply the interest parity condition to find equilibrium exchange rates
- Describe the balance of payments accounts, explain their relationship to the current account balance, and relate the current account to changes in a country’s net foreign wealth
- Outline the relationship between the short-run and the long-run effects of monetary policy, and explain the concept of short-run exchange rate overshooting
- Outline several distinct methodologies utilized in currency investing
- Calculate temporary currency pricing discrepancies and explain arbitrage strategies
Course Contents
- International Trade and Finance. Exchange Rates.
- Balance of Payments. Parity Conditions and Exchange Rate Determination.
- International Investments Strategies
- Currency derivatives and arbitrage strategies
