Foreign Exchange Handbook: Managing Risk and Opportunity in Global Currency Markets

W. Bruce Wrigley is a Toronto-based bank treasury advisor.

This volume could become the standard foreign-exchange handbook that
every treasury manager (or anyone else interested in or in need of
foreign-exchange basics) keeps on the office credenza. Paul Bishop and
Don Dixon have taken a sometimes confusing topic and laid it out in a
straightforward manner for both experienced and novice practitioners.

It is obvious throughout the text that the authors have tried to be
concise and factual. The effort usually pays off. The short history of
foreign exchange that opens the first section is perhaps a little too
brief. Here, the historically minded cannot count on the bibliography
for further suggestions. Nevertheless, the first section is a
fundamental primer on the basics of foreign-currency price movements.
Contained within this section is a forecasting chapter that covers both
fundamental and technical analysis. Part 2 outlines the mechanics of
pricing and transacting most currency products, including options. The
final section deals with accounting considerations and defining
transaction exposures, and includes a very helpful chapter to assist in
establishing an in-house policy on foreign exchange. A glossary of terms
is included.

Whether used as a practitioner’s bible or as a casual reference, it
would be difficult to find a better primer on the subject of foreign
exchange than this book.