Part Three现代金融业务.ppt

Part Three. The Foreign Exchange System of China The Main Contents I. Foreign Exchange II. Foreign Exchange Quotation III. Foreign Exchange Risk and Elimination IV. Reporting System of BOPS V. RMB Exchange Rate Reform Test phrases foreign exchange foreign currency current account capital account floating exchange rate IMF QFII SAFE Chinese-funded foreign-funded market access market exit RMB exchange rate regime a basket of currencies banknotes coins payment vouchers negotiable instruments corporate bonds SDRs EURO Euro Zone I. Foreign Exchange  1. Definition and Range Foreign currencies (banknotes coins) payment vouchers securities in foreign currencies super-national currencies--SDRs ---The State Administration of Foreign Exchange (SAFE)  3. Historical Development of Foreign Exchange Control for Current Account Transactions Before 1979, adoption of strict foreign exchange control; In 1994, introduction of conditional current account convertibility; In 1996, taking current account full convertibility and becoming Article VIII Member of IMF. 4.Historical Development of Foreign Exchange Control for Capital Account Transactions The controls over capital account transactions have also been gradually liberalized. e.g. , Foreign exchange administration of overseas investment was reformed to encourage domestic enterprises to go abroad. QFII were permitted to invest in domestic capital market . Capital Account Transactions---cross-border capital movements 1. Investments 2. Borrowings 5. The state implements a reporting system for balance of payments statistics. 6. The Bank of China is the principal foreign exchange bank. special drawing rights: reserve assets in the International Monetary Fund; designed to supplement reserves of gold and convertible currencies used to