Chapter4 Exchange Rate Determination(汇率的决定).ppt

我国通胀为什么未引起人民币贬值？ 作为政策工具，本国货币升值好，还是贬值好？ 如欧元区债务危机引起市场情绪担忧，从而引起欧元汇率下跌。 广东工业大学管理学院 广东工业大学管理学院 International Corporate Finance Exchange Rate Determination 4 Chapter Chapter Objectives To explain how the equilibrium exchange rate is determined; and To examine the factors that affect the equilibrium exchange rate. To explain how to Speculate on Anticipated Exchange Rate 1.Measuring Exchange Rate Movements An exchange rate measures the value of one currency in units of another currency. When a currency declines in value, it is said to depreciate. When it increases in value, it is said to appreciate. “mixed in trading” Foreign Exchange Quotations direct quotations, indirect quotations and cross quotations. Direct quotations represent the value of a foreign currency in dollars, while indirect quotations represent the number of units of a foreign currency per dollar. Indirect quotation = 1 Direct quotation A cross exchange rate reflects the amount of one foreign currency per unit of another foreign currency. Example Direct quote: $1.50/￡, $.16/￥ Value of ￡ in ￥ = value of ￡ in $ value of ￥ in $ = $1.50/￡ $.16/￥ Foreign Exchange Quotations = 9.375￥/￡ The percentage change (% D) in the value of a foreign currency is computed as St – St – 1 St – 1 where St denotes the spot rate at time t. A positive % D represents appreciation of the foreign currency, while a negative % D represents depreciation. 1.Measuring Exchange Rate Movements How exchange rate volatility are measured 2.Exchange Rate Equilibrium An exchange rate represents the price of a currency, which is determined by the demand for that currency relative to the supply for that currency. Demand for a currency Supply of a currency Value of ￡ Quantity of ￡ $1.55 $1.50 $1.60 Equilibrium exchange rate D: Demand for ￡ S: Supply of ￡ 2.Exchange Rate Equilibrium 2.Exchange Rate Equilibrium Equilibrium : the equilibrium exchange rate is the rate that equates the quant