Lecture 1：FOREIGN EXCHANGE MARKET(国际金融-南开,胡春田)Lecture 1Lecture 1：FOREIGN EXCHANGE MARKET(国际金融-南开,胡春田).docVIP

Lecture 1：FOREIGN EXCHANGE MARKET Definition: F.E: ①bank deposit in terms of foreign currency ②foreign currency: bill, coin ③short terms claims on foreign assets: treasury bill, stock, foreign bond F.E.MARKT：place which serves as intermediary of selling and buying F.E. No single place PARTICIPANTS：①retail customer ②commercial banks ③F.E. brokers ④central banks EXCHANGE RATE : Bilateral vs weighted average (effective exchange rate) Nominal vs. real Buying vs selling rate (bid) (offer)(ask) spread bid---offer no transaction cost ( RMB/￡==1/（￡/RMB） if tr