商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 12 Foreign Exchange Trading.pptVIP

Unit Twelve Introduction Foreign exchange trading has been playing an essential role in international trade. It has taken the form of gold standard, fixed exchange rates system, floating exchange rates system since the 19th century. And the foreign exchange market is the mechanism through which foreign currencies are traded. The market consists of spot and forward transactions. Text 1 Without foreign exchange trading, international trade itself could not exist. In former times trade was based on bartering—goods were exchanged for other goods. The introduction of precious metals (i.e., gold and silver) to pay for goods can be considered the forerunner of the foreign exchange market. 12 A forward transaction means that delivery of a currency is specified to take place at a future date. Japanese exporters of Toyota cars to the United States know from their sales contracts that they will receive a specified United States dollar amount in six months. In order to protect themselves against fluctuating exchange rate, they can sell the dollars forward six months to their bank in Japan in return for yen. Payment and delivery are not required until six months later. The rate of exchange is fixed, however, on the date of the contract. Forward rates are usually quoted on a 30-, 90-, or 180-day basis, but major currencies can have any maturity up to a year ad sometimes longer. 1. gold reserve 2. Governments introduced a par value of their respective local currencies in gold. 3. gold standard 4. The value of currencies was meant to be regulated by supply and demand (the market mechanism) , but speculators often interfered with this mechanism. 5. The Bretton Woods Agreement stipulated that all member countries would express the value of their currencies in gold. 6. fixed exchange rate 7. floating exchange rate system