金融英语-5-International Finance.pptVIP

Part 5 International Finance Chapter Outline： 5.1 Foreign Exchange Market 5.2 International Banking Services 5.3 Global Trends in FDI 5.1 Foreign Exchange Market 5.1.1 Function and Structure of the FOREX Market 5.1.2 The Spot Market 5.1.3 The Forward Market 5.1.1 The Function and Structure of the FOREX Market FOREX Market Participants Correspondent Banking Relationships FOREX Market Participants The FOREX market is a two-tiered(双重的) market: Interbank Market (Wholesale 批发) About 700 banks worldwide stand ready to make a market in Foreign exchange. Nonbank dealers account for about 20% of the market. There are FX brokers who match buy and sell orders but do not carry inventory and FX specialists. Client Market (Retail 零售) Market participants include international banks, their customers, nonbank dealers, FOREX brokers, and central banks. Correspondent Banking Relationships Large commercial banks maintain demand deposit accounts with one another which facilitates the efficient functioning of the forex market. International commercial banks communicate with one another with: SWIFT: The Society for Worldwide Interbank Financial Telecommunications. CHIPS: Clearing House Interbank Payments System ECHO Exchange Clearing House Limited, the first global clearinghouse for settling interbank FOREX transactions. 5.1.2 The Spot Market Spot Rate Quotations The Bid-Ask Spread Spot FX trading Cross Rates Spot Rate Quotations Direct quotation(直接标价法) the U.S. dollar equivalent（一单位外币付多少本币） e.g. “a Japanese Yen is worth about a penny” Indirect Quotation (间接标价法) the price of a U.S. dollar in the foreign currency（一单位本币付多少外币） e.g. “you get 100 yen to the dollar” The Bid-Ask Spread The bid price（买入价 ） is the price a dealer is willing to pay you for something. The ask price（卖出价） is the amount the dealer wants you to pay for the thing. The bid-ask spread is the difference between the bid and ask prices. Spot FX trading In the interbank market, the standard size trade is about U.S. $10 millio