国际金融学exchange rate economics课件PPT.ppt

Contents;I. Foreign Exchange I.1 A Dynamic Definition Foreign Exchange, also labeled as international exchange, a means for the settlements of international indebtednesses, credits and international flows of money. In this sense, foreign exchange is the equivalent to international settlement. I.2 A Narrow Definition Foreign Exchange is the assets denominated in foreign currency that can be used to settle a country’s imbalances of balance of payments.;Free convertibility General acceptability Payable I.3 Functions Value measurement A means for international settlement Store of value A means for intervention;II. Foreign Exchange Market Foreign Exchange Market refers to the market(s) in which international currencies trades take place (Table 2-1-1, Table 2-1-2 and Table 2-1-3 for a survey of global foreign exchange market). II.1 Actors Commercial banks (CBs) Corporations Non-bank financial institutions, and Central banks;Table 2-1-1 Global Foreign Exchange Market Turnover Source: BIS. In billions of US dollars.;II.2 Market Microstructure;The Exchange Rate;I.2 Some Fundamental Concepts Quotation Direct Quotation, also labeled as Price Quotation. The price of a unit of foreign currency in terms of home currency. e.g.2-1-1. US$1=RMB7.3046 Indirect Quotation, or Quantity Quotation. The price of a unit of home currency in terms of the foreign currency. e.g.2-1-2. RMB1=US$0.1369 For a more real example, see Table 2-1-4.;;Nominal rate vs. real rate Nominal Exchange Rate is the rate publicly announced or released by a country’s monetary authorities etc. Real Exchange Rate (RER) is the rate adjusted by the relative prices between the countries under consideration. Let P, P* and S denote domestic and foreign prices, and the exchange rate, respectively. The real exchange rate can be defined as follows, RER=SP*/P As an example, the rates in Table 2-1-1 and Table 2-1-2 are nominal ones and real ones.;Table 2-1-2 Nomina