INTL FCStone Inc., a leader in the development of specialized financial services in commodities, securities, global payments, foreign exchange and other markets, has announced that its London-based subsidiary, INTL FCStone Ltd, has partnered with Nigeria’s Financial Markets Dealers Association (FMDA) to host a Commodity Markets and Risk Management Seminar on October 7-8, 2015 at the Southern Sun, Ikoyi, Lagos, Nigeria.
Commodity prices and exchange rates present major risks for Nigerian banks, underlining the need to develop a broader based understanding of the potential use of derivative products to hedge these risks.
For banks with exposure to the oil sector, the oil price collapse has impacted the soundness of bank assets where oil prices are not hedged.
For banks with clients servicing major currency loans or costs of production, Naira devaluation impacts cash flow where exchange rates are not hedged.
For banks responding to government and Central Bank of Nigeria’s encouragement to lend to the agricultural sector, the ability to manage exposure to agricultural produce will be imperative.
To support Nigerian banks needing to broaden their understanding of derivative products and skills in hedging, the FMDA and INTL FCStone Inc. are bringing together a team of leading practitioners in the world’s major commodity markets and capacity-building specialists with experience in African financial markets to run a unique seminar focusing on building skills in risk management for commodity-backed lending.
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