COMPETENCY AND INDONESIAN QUALIFICATION FRAMEWORK BASED SYLLABUS
Course Title
Coordinator
Course Code
Credit
Semester
Prerequisite Course
Short Description
Learning Outcome
Session
1
Expected Learning
Outcome (Basic
Competency)
Students can explain the
importance of
international finance, the
development and
indicators of international
finance
: International Financial Economics
: Dr. Dedi Budiman Hakim, M.Ec
: EKO 326
: 3 (3-0)
: Even/6
: EKO 203, EKO 226
: This course is designed to provide knowledge on the importance of international finance and the development of
international finance at the present.
: After completing this course, students are expected to be able to explain the importance and development of
international finance
Teaching Material
- Course Contract
- The importance of
international finance
- International business
companies
- Interdependency of
international finance
- Micro and macro
aspects of
international finance
- The role of financial
managers, the impacts
of exchange rate
fluctuation
- Indicators of
international finance
Assessment Indicator
Students understand
the factors behind the
excellence of
international finance,
explain the role of
financial managers,
financial
internationalization,
and identify the
development at the
present
Time
3 x 50
minutes
Learning
Method
Lecture and
Discussion,
Assignment
Assessment
Criteria
Assessmen
t Weight
Essay
written test
Mid-Test
(UTS) :
50% ;
Reference
M : Chap 1
Final Test
(UAS) :
1
Session
Expected Learning
Outcome (Basic
Competency)
2
Students can explain the
definition, participants,
mechanism, and
technology of foreign
exchange market
3
Students can explain
balance of payment (BOP)
and effective exchange
rate (definition, structure,
and its determining
Teaching Material
- The development of
international finance
post-war
- The definition and
characteristics of
foreign exchange
market
- Market’s participants,
size, composition, and
geographic
distribution
- Currency composition
- Transaction
components of foreign
exchange
- Spot transaction of
foreign exchange
- The change in
exchange rate and
currency conversion
- Forward exchange
rate
- Outright transaction
and swap forward
- Forward distribution
- Premium and discount
- Explain the definition
and structure of BOP
- Components of
current account
- Financial account
Assessment Indicator
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Students can explain
foreign exchange
market and identify the
participants and
currency, explain the
mechanism and
technology of foreign
exchange trade, know
the concept of
exchange rate, and
describe maintained
foreign exchange
position
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 2
Students can
understand the
structure of BOP, the
relationship between
foreign exchange
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 3
2
Session
Expected Learning
Outcome (Basic
Competency)
factors)
4
Students can explain
factors that determine
foreign exchange supply
and demand and issues
related to foreign exchange
market
5
Students can explain
international monetary
system (IMS)
Teaching Material
Assessment Indicator
- BOP and foreign
exchange market
- factors that influence
current account
- effective exchange
rate, real exchange
rate, real effective
exchange rate
- Explain several types
of fact
- exchange rate
equilibrium
- the determinants of
foreign exchange
supply and demand
- arbitrage in foreign
exchange market
- arbitrage multipoint
- foreign exchange
market speculation
- the determinants of
arbitrage bid-offer
spread and
speculation with bidoffer spread
- forward determinant
- forward spread
- Explain the definition
and components of
IMS
- Monetary system
market and effective
exchange rate concept.
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Students understand
the factors behind the
change of exchange
rate, the impacts of
arbitrage and
speculation, explain
bid-offer spread and
forward spread,
explain the influence of
bid-offer spread and
forward spread on
exchange rate.
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 4
Students understand
the classification of
international monetary
system, the outlines of
3 x 50
minutes
Lecture and
Discussion
M : Chap 5
3
Session
Expected Learning
Outcome (Basic
Competency)
6
Students can explain the
difference between
forward, futures, and swap
markets
7
Students can explain the
basic concept of currency
preference contract
Teaching Material
Assessment Indicator
classification
- Fixed and flexible
exchange rates
- The development of
international finance
system
- Financial crisis
- One-currency world?
- Explain the definition
of futures contract
- The comparison
between forward,
futures, and swap
markets
- Swap exchange rate
- Swap interest rate
- Explain the definition
of currency preference
- Europe or United
States call and put
preferences
- Currency preference
specification
- Price preference
determinants
- Sensitivity
measurement
- Exotic preferences
exchange rate
arrangement, the pro
and contra of fixed and
flexible exchange rates.
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Students understand
the futures contract
and how to avoid it,
compare forward and
futures markets,
explain swap design
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 6
Students understand
the basic concept and
contract of currency
preference, premium
preference
determinants, and
exotic currency
preference
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 7
3 x 50
minutes
Lecture and
Discussion,
M : Chap 8
MID-TES/UTS (40%)
8
Students can explain the
money market of Europe
- Explain the currency
of Europe and the
Students can explain
the currency market of
4
Session
Expected Learning
Outcome (Basic
Competency)
-
9
Students can explain the
Law of One Price
-
10
Students can explain
Covered Interest Arbitrage
(CIA)
-
-
Teaching Material
Assessment Indicator
currency market of
Europe
The currency central
of Europe
The evolution and
growth of banking in
Europe
The causes of
international banking
International bank
activities
Explain the Law of One
Price (LOP)
The change from LOP
to Purchasing Power
Parity (PPP)
The exchange rate of
PPP
The validity of PPP
The actual and
exchange rate of PPP
Nominal and real
exchange rate
PPP as trading rules
The monetary model
of exchange rate
Explain the definition
of CIP (Covered
Interest Parity)
The reasons to choose
CIP
Europe, the currency
central bank of Europe,
the causes for currency
growth in Europe, and
explain international
banking
Students can explain
the Law of One Price,
the derivation of PPP
from LOP, assess the
empirical validity of
PPP, the trading rules
of PPP, and monetary
model
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Assignment
3 x 50
minutes
Students understand
3 x 50
the reasons for CIP,
minutes
explain the condition of
CIP, the mechanism of
covered arbitrage, and
M : Chap 9
Lecture and
Discussion,
Assignment
M : Chap 10
5
Session
Expected Learning
Outcome (Basic
Competency)
11
Students can explain the
efficiency concept of
foreign exchange market
12
Students can explain the
importance of exchange
rate forecasting and are
able to evaluate and
measure the accuracy of
forecasting
Teaching Material
Assessment Indicator
- CIP equilibrium
condition
- Investment profit and
CIA
- Arbitrage closing with
bid-offer spread
- CIP deviation and
margin closing
- Covered margin
determinants
- Explain market
concept and efficiency
- forward market
efficiency
- uncovered interest
parity (UIP)
- foreign and domestic
investment returns
- UIP condition and
uncovered interest
arbitrage (UIA)
- UIA with bid-offer
spread
- real interest parity
- Explain the
importance of
exchange rate
forecasting
- Econometric
forecasting model
- time series model
explain the deviation of
CIP
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Students understand
market efficiency
concept, UIP condition,
UIP empirical
validation, explain real
interest concept and
the derivation of real
interest parity.
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 11
Students understand
the importance of
exchange rate
forecasting, forecasting
technique, empirical
evidence of forecasting
model, explain the way
3 x 50
minutes
Lecture and
Discussion,
Assignment
M : Chap 12
6
Session
Expected Learning
Outcome (Basic
Competency)
-
13
Students can explain the
concepts of risks and
exposure and factors that
determine them
-
14
Students can explain the
risk management of
foreign exchange
-
-
Teaching Material
Assessment Indicator
law of forecasting
forecasting composite
forecasting evaluation
measure the accuracy
of forecasting
technical analysis
market efficiency and
trading rules
empirical evidence
Explain the definition
of risks
foreign exchange risks
measure risks
risk value
pro and contra
exposure of foreign
exchange
exposure line
the relationship
between foreign
exchange risks and
exposure
factors that influence
foreign exchange risks
and exposure
Explain the reasons to
learn foreign exchange
risks
forward and futures
hedging
money market
to evaluate forecasting,
analysis technique
using general buying
and selling signal, rule
selection and the
average movement of
work rules
Students can explain
risks and exposure and
differentiate between
transaction, economy
and exposure
Students understand
the reasons to learn
foreign exchange risks,
how to manage
transaction, economy
and translation
Time
3 x 50
minutes
3 x 50
minutes
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
Lecture and
Discussion,
Assignment
M : Chap 13
Lecture and
Discussion,
Assignment
M : Chap 14
7
Session
Expected Learning
Outcome (Basic
Competency)
-
-
Teaching Material
Assessment Indicator
protection (revenue
and payment)
hedging selection
long-run management
of exposure
transaction
economic exposure
translation exposure
exposure
Time
Learning
Method
Assessment
Criteria
Assessmen
t Weight
Reference
FINAL TEST/UAS (40%)
ASSIGNMENT (20%)
Reference
1. Moosa, Imad. 2004. International Finance: An Analytical Approach. McGraw-Hill. Australia. (M)
2. Handout and journal provided by lecturers
Lecturer Team:
Dr. Dedi Budiman Hakim (Coordinator)
Prof. Dr. Noer Azam Achsani
ASSESSMENT FORMAT
: Exam and Assignment
Mid-Test (UTS)
: 40 %
Final Test (UAS)
: 40 %
Assignment (Paper) : 20 %
8