FinancialEnglish7.ppt

Chapter 7 —Foreign Exchange Market International Balance of Payment Most countries of the world have their own currencies: The United States has its dollar, The United Kingdom has its pound. Trade among countries involves the mutual exchange of different currencies. The trading of currency and bank deposits denominated in particular currencies takes place in the foreign exchange market. The volume of these transactions worldwide averages over $1 trillion daily. Transactions conducted in the foreign exchange market determine the rates at which currencies are exchanged, which in turn determine the cost of purchasing foreign goods and financial assts. 1988 Exchange Rate Report from U.S. Treasury 1989-1994 Manipulator 2005.7.21 The beginning of RMB appreciation 2006.9.19 7.94-7.93-7.9188 2006.12.14-15 7.8197 2007.3.7-8 7.74 Course Structure What Are Foreign Exchange Rates? Why Are Exchange Rates Important? How Is Foreign Exchange Traded? Exchange Rates and the Economy Defining the Balance of Payments and Its influence on the Exchange Rate The means and methods by which rights to wealth expressed in terms of the currency of one country are converted into rights to wealth in terms of the currency of another country are known as “foreign exchange”. 外汇的最初含义和动态含义是国际汇兑，即通过特定的金融机构（外汇银行）将一国货币兑换为另一种货币，并借助各种金融工具对国际间的债权债务关系进行非现金结算的行为。 静态的外汇从动态的国际汇兑行为衍生而来，它是国际汇兑活动的支付手段和工具，是外汇的物质存在形态。 广义静态和狭义静态的区别 国际货币基金组织和中国对外汇的界定 外汇是货币当局（中央银行、货币管理机构、外汇平准基金组织即财政部等）以银行存款、国库券、政府公债等形式保有的，在国际收支逆差时可以使用的债权。它包括中央银行及依据政府间协议而发行的在市场上不流通的债权，无论是以债务国货币还是债权国货币表示。 2008年8月1日修订的《中华人民共和国外汇管理条例》第三条规定，外汇是指以外币表示的可以用做国际清偿的支付手段和资产，它包括（1）外币现钞（纸币，铸币）；（2）外币支付凭证或支付工具，包括票据、银行存款凭证、银行卡等；（3）外币有价证券（股票、债券等）；（4）特别提款权；（5）其他外汇资产。 Characteristics of Foreign Exchange It is a payment instrument represented by foreign currencies. It must be available for payment abroad. Convertibility Financial Asset with profitability, risk, liquidity. Defining Exchange Rate The exchange rate is the number of u