Foreign Exchange Risk Management of Al-Arafah Islami Bank Ltd

Abstract

The internship is designed to bridge the gulf between the theoretical knowledge and real life experience. It is designed to have a practical experience while passing through the theoretical understanding. The report is the result of 3-month internship program in Al-Arafah Islami Bank Ltd - Basundhara branch, Dhaka today, necessity of a bank as financial institution is undeniable. These institutions play a vital role in the field of financial stability of a country. Banking sector is one of the most stable financial institutions of any economy. This report contains five chapters. First chapter deals with Introduction, origin, objective, scope, methodology and limitations of the report. Second chapter is the Organizational part of AlArafah Islami Bank Ltd where I have tried to show an overview of Al-Arafah Islami Bank Ltd. and its theoretical background, Mission, Vision, Operating Profit, Deposit growth, etc. Third & forth chapters contain the theoretical aspect and the learning part of the report; forging exchange risk management and fifth chapter contains findings, recommendations, conclusion and Reference. The report has been made by a careful review of published annual report, case study & discussion with responsible persons of Al-Arafah Islami Bank Ltd. who are engaged & connected with my related department. While working with foreign exchange division in AlArafah Islami Bank Ltd., I have tried to find out some problems. At last, I have tried to give some recommendations against the mentioned problems of foreign exchange risk management system. I hope and believe, by implementing the mentioned recommendations Al-Arafah Islami Bank Ltd. can reach the pick of its success.