What Does a Foreign Currency Investment Manager Do?

What a foreign currency investment manager does depends on their financial firm, but most manage foreign currency exchange market interactions. This extremely large and lucrative financial market is made up of investment participants who sell, buy and exchange over a 100 types of national currencies.

Foreign Currency Investments

Businesses around the world use the foreign exchange market, which is formally known as the forex market (FX), to purchase goods and services from other countries. This financial system is very complex because it is decentralized. As the global business world becomes more integrated and mutually interdependent, currency exchange experts are needed to handle investment transactions. Foreign currency investment advisors and managers are almost all employed by banking, investment and other financial service firms.

They are also employed by import/export companies, multinational manufacturers and global firms. Foreign currency investment professionals may work alongside commodity specialists, futures commission merchants and investment fund managers. Their position is similar to financial analysts and advisors. The Bureau of Labor Statistics (BLS) states that the job outlook for financial analysts is expected to continue growing at 12 percent, which is faster than average.

Foreign Currency Investment Managers

Foreign currency investment managers oversee global transactions and investments. They help their clients maximize profits in currency markets by scrutinizing and comparing daily currency value fluctuations against investment opportunities. They use their technical prowess, knowledge of global economics and quantitative analysis skill to achieve financial objectives. When buying and selling foreign currencies in the global marketplace, foreign currency investment managers strive to minimize risks against potential profits. They monitor markets in order to decide the optimum time to commence with mergers, purchases and investments.

They use their expertise of foreign currency and investment markets to help their clients understand how the risks of currency fluctuations impacts profits. One of their most common tactics of minimizing risks is called the forward exchange contract. This legal document specifies a predetermined exchange rate for certain transactions, so financial firms avoid the hazards of currency appreciations and depreciations. Foreign currency investment managers also advise financial executives on how to develop and manage the company’s overseas investment strategies.

How to Become a Foreign Currency Investment Manager?

It is very hard to become a foreign currency investment manager with only a two-year degree. However, there is no set major requirement to work in this field. Instead, most foreign currency investment managers start out their careers with a four-year degree in finance, accounting, economics, mathematics, statistics and business management. All of these degrees will provide students with the knowledge needed to understand international laws, business, transactions and investments. Regardless of the degree, students must take classes about currency, investments and risk management.

Related Resource: Careers in International Accounting

Because foreign currency investment managers handle millions of dollars and very important accounts, most employers will want candidates who have a master’s degree. Fortunately, many degree programs offer internships and practicums with forex companies. These allow students to gain a working knowledge of the industry standards and regulations governing currency exchange transactions.

What a foreign currency investment manager does will most likely include interacting for foreign clients, so learning a second language is highly recommended.