国际金融实物英文版课件及作业大全
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国际金融英文版PPT CH4
The Classical Gold Standard (1876 – 1914)
The gold standard was a commitment by participating nations to fix the price of their domestic currencies in terms of a specified amount of gold. The government announces the gold par value which is the amount of its currency needed to buy one ounce of gold. Therefore, the gold was the international currency under the gold standard.
Exports rise Imports shrink
BOP surpluses Gold inflows
BOP deficits Gold outflows
Exports decline Imports increase
Money supply up Prices up
Performance of the gold standard
Gold Standard and Exchange Values
Pegging the value of each currency to gold established an exchange rate system. The gold par value determined the exchange rate between two currencies known as “mint par of exchange”
国际金融英文版PPT(共46页)
The exchange rate would fluctuate between (0.80 + 0.008) = 0.8008 and (0.80 – 0.008) = 0.792
0.8008 and 0.792 are called gold export and import points.
The BOP disequilibrium was corrected by “Price-specie-flow mechanism”.
Example of gold export and import
If the gold par value in New Zealand was NZ$125/ounce and A$100/ounce in Australia, so mint par of exchange: 100/125 = A$0.80/NZ$ Costs of gold transportation: A$0.008/NZ$
The Classical Gold Standard (1876 – 1914)
The gold standard was a commitment by participating nations to fix the price of their domestic currencies in terms of a specified amount of gold.
International monetary system is based on the exchange rate system adopted by individual nations. The exchange rate system is a set of rules governing the value of a currency relative to other currencies.
0.8008 and 0.792 are called gold export and import points.
The BOP disequilibrium was corrected by “Price-specie-flow mechanism”.
Example of gold export and import
If the gold par value in New Zealand was NZ$125/ounce and A$100/ounce in Australia, so mint par of exchange: 100/125 = A$0.80/NZ$ Costs of gold transportation: A$0.008/NZ$
The Classical Gold Standard (1876 – 1914)
The gold standard was a commitment by participating nations to fix the price of their domestic currencies in terms of a specified amount of gold.
International monetary system is based on the exchange rate system adopted by individual nations. The exchange rate system is a set of rules governing the value of a currency relative to other currencies.
国际金融英文版课件CH2
Imports Debit (-) Credit (+) $300,000
Balance of trade = Exports – Imports = $20,000 – $300,000 = - $280,000
Transaction 3: service export Mr. Williams, an American, decides to go to China for his three-week vacation. He buys a round trip ticket on China Air Lines for $2,500. His expenses in China for hotels, food, transportation and souvenirs come to the equivalent of $15,000. He pays the ticket in cash with dollars and obtains the RMB equivalent of $15,000 that he spends in China by selling dollars to a Chinese bank.
Chapter 2
Balance of Payments (BOP)
Concept of Balance of Payments
The BOP is the record of the economic and financial flows that take place over a specified time period between residents and non-residents of a given country. Time period: It is arbitrary (1,3,6,12 month). Most countries compile BOP statistics on a yearly basis. The U.S. and U.K. publish trade balance each month.
国际金融英文版PPT CH8
The elasticity of export (or import) supply is the responsiveness of the quantity supplied to a change in price. If EX > 1, demand is elastic; the percent rise in quantity of exports is greater than the percent fall in price. If EX < 1, demand is inelastic; the percent rise in quantity of exports is smaller than the percen of demand for exports and imports of 15 industrial countries
The elasticity of demand for exports and imports for 9 developing countries (Con’t)
Chapter 8
The Balance-of-Payments Adjustment (I)
Elasticity Approach (Relative Price Effects)
Elasticity is the ratio between proportional change in one variable and proportional change in another. The elasticity of export (or import) demand is the responsiveness of the quantity demanded to a change in price. EX = △QX /△PX EM = △QM /△PM
国际金融英文PPT课件 (3)
Factor income consists largely of payments and receipts of interest, dividends, and other income from foreign investment.
Unilateral transfers mean unrequited payments (无偿支 3-10 付) including foreign aid, reparation, and gifts.
How the balance of payments accounts is formed?
3-0
Chapter Outline
3.1 Balance of Payments Accounting 3.2 Balance of Payments Accounts
3.2.1 The Current Account 3.2.2 The Capital Account 3.2.3 Statistical Discrepancy 3.2.4 Official Reserves Account
3.2 Balance of Payments Accounts
The balance of payments accounts are those that record all international transactions between the residents of a country and residents of all foreign nations.
International economic transactions[1] include import and export of goods and services, and cross-border investments in businesses, bank accounts, bonds, stocks, and real estate.
Unilateral transfers mean unrequited payments (无偿支 3-10 付) including foreign aid, reparation, and gifts.
How the balance of payments accounts is formed?
3-0
Chapter Outline
3.1 Balance of Payments Accounting 3.2 Balance of Payments Accounts
3.2.1 The Current Account 3.2.2 The Capital Account 3.2.3 Statistical Discrepancy 3.2.4 Official Reserves Account
3.2 Balance of Payments Accounts
The balance of payments accounts are those that record all international transactions between the residents of a country and residents of all foreign nations.
International economic transactions[1] include import and export of goods and services, and cross-border investments in businesses, bank accounts, bonds, stocks, and real estate.
国际金融英文课件3
Introduction to Foreign Exchange Market
An international network of dealers - It consists of a limited number of major dealer institutions that are particularly active in foreign exchange, trading with customers and (more often ) with each other. Most are commercial banks and investment banks - Although geographically dispersed in numerous financial centres around the world, these dealer institutions are linked to each other through telephones, computers, and other electronic means.
Introduction to Foreign Exchange Market
The World's Largest Market It is by far the largest and most liquid market in the world. The estimated worldwide turnover of reporting dealers, at around $2 trillion a day (in 2004). – 7 times the level of turnover in the US Government securities market. The breadth, depth, and liquidity of the market are truly impressive. ($200 ~ $500 million per individual trade; 20 times a minute, 18,000 changes per day) The five major centers of Forex trading, are based in London, New York, Zurich, Frankfurt and Tokyo.
国际金融英文版PPT CH7
0.84-0.64
0.30-0.17 1.17-0.90 0.40-0.20 0.05-0.04 0.28-0.03
1.02-0.82
0.28-0.18 1.33-1.18 0.60-0.40 0.35-0.25 0.33-0.10
1.30-1.10
0.47-0.35 1.88-1.35 0.92-0.82 0.46-0.26 0.40-0.19
(+) $1m deposit (-) $1m deposit at Bank of America of Chinese firm
The U.S. banking system is not effected. One million eurodollar is created in Hong Kong.
Eurocurrency Markets
Eurocurrency market is for transactions of financial assets and liabilities denominated in Eurocurrencies. Eurocurrency is a currency held in a country other than the country the currency is issued. For example, a dollar deposit in a London bank or a Paris bank. The dollar is called Eurodollar. If a sterling deposit held in a Japanese bank, the sterling is called Eurosterling.
国际金融学英文课件：ch06 International Banking
Consequently, very few nations’ investment projects are purely domestically financed. Most of the largest banking institutions, called megabanks, are located in Japan and Europe. Economies of scale can explain the existence of megabanks whose operations span the globe. Some economists believe that a particular form of economies of scale may explain the existence of megabanks: economies of scale in information processing.
Potential rivalry, or banking competition, measured by portion of total deposits/assets concentrated among a nation’s largest banks, is the main indicator of bank market structure.
12
Section 2: Banking Around the Globe
Business of banking varies from nation to nation. Each country has its own unique banking history,
and this fact alone accounts for distinctive features of national banking system. Banks’ role; bank market structure; legal environment;
国际金融英文版PPT CH3
Spot Exchange Market and Exchange Rate Quotations
The spot exchange market is a market that deals in foreign exchange for immediate delivery. Immediate delivery in foreign currencies usually means within two business days.
A spot exchange rate is the current market price, the rate at which a foreign exchange dealer converts one currency into another currency on a particular day.
Small- to medium-size banks are not market makers in the interbank market. They buy from and sell to larger banks to offset retail transactions with their own customers.
American quote is the dollar per currency quote, i.e. the price of other currencies in terms of the dollar. Example: US$ 1.57 = ￡1 US$ 1.35 = €1
Hale Waihona Puke European quote is the currencies per dollar quote, i.e. the price of the dollar in terms of the other currencies. Example: A$ 1.02 = US$ 1 € 0.74 = US$ 1
国际金融英文PPT课件 (5)
International Parity Conditions and Exchange Rate Determination
5
Chapter Five
Chapter Objective: This chapter examines several key international parity relationships, such as interest rate parity (IRP) and purchasing power parity (PPP).
5-2
5.1.1 Interest Rate Parity Defined
IRP is an “no arbitrage” condition. If IRP did not hold, then it would be possible for
an astute trader to make unlimited amounts of money exploiting the arbitrage opportunity. Since we don’t typically observe persistent arbitrage conditions, we can safely assume that IRP holds.…almost all of the time!
Spot exchange rate 360-day forward rate U.S. discount rate British discount rate
S($/£) = $2.0000/£
F360($/£) = i$ = i£ =
$2.0100/£ 3.00% 2.49%
5-10
Covered Interest Arbitrage
5
Chapter Five
Chapter Objective: This chapter examines several key international parity relationships, such as interest rate parity (IRP) and purchasing power parity (PPP).
5-2
5.1.1 Interest Rate Parity Defined
IRP is an “no arbitrage” condition. If IRP did not hold, then it would be possible for
an astute trader to make unlimited amounts of money exploiting the arbitrage opportunity. Since we don’t typically observe persistent arbitrage conditions, we can safely assume that IRP holds.…almost all of the time!
Spot exchange rate 360-day forward rate U.S. discount rate British discount rate
S($/£) = $2.0000/£
F360($/£) = i$ = i£ =
$2.0100/£ 3.00% 2.49%
5-10
Covered Interest Arbitrage
国际金融英文课件2共45页
• National income accounting – Records all the expenditures that contribute to a country’s income and output
• Balance of payments accounting – Helps us keep track of both changes in a country’s indebtedness to foreigners and the fortunes of its export- and import-competing industries
– 宏观经济学以整个国民经济作为研究对象，研究经济总量的决定及其变化规律。 具体来说，就是研究国民收入决定和变动；长期的经济增长和短期的经济波动； 以及相关的通货膨胀、失业和国际收支等问题。宏观经济学通过经济总量的分析 以期为政府制定宏观经济政策提供理论依据。
– It emphasizes four aspects of economic life: • Unemployment • Saving • Trade imbalances • Money and the price level
Balance of payments
• The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country.
• Balance of payments accounting – Helps us keep track of both changes in a country’s indebtedness to foreigners and the fortunes of its export- and import-competing industries
– 宏观经济学以整个国民经济作为研究对象，研究经济总量的决定及其变化规律。 具体来说，就是研究国民收入决定和变动；长期的经济增长和短期的经济波动； 以及相关的通货膨胀、失业和国际收支等问题。宏观经济学通过经济总量的分析 以期为政府制定宏观经济政策提供理论依据。
– It emphasizes four aspects of economic life: • Unemployment • Saving • Trade imbalances • Money and the price level
Balance of payments
• The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country.
罗伯特J凯伯《国际金融》(第十三版英文版)课件
• Settled with international reserves
• Enable nations to sustain temporary balanceof-payments deficits
• Until acceptable adjustment measures can operate to correct the disequilibrium
• The smaller and more short-lived market imbalances will be and • The fewer reserves will be needed
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password‐protected website for classroom use
International Banking: Reserves, Debt, and Risk
PowerPoint slides prepared by: Andreea Chiritescu Eastern Illinois University
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password‐protected website for classroom use
• Enable nations to sustain temporary balanceof-payments deficits
• Until acceptable adjustment measures can operate to correct the disequilibrium
• The smaller and more short-lived market imbalances will be and • The fewer reserves will be needed
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password‐protected website for classroom use
International Banking: Reserves, Debt, and Risk
PowerPoint slides prepared by: Andreea Chiritescu Eastern Illinois University
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password‐protected website for classroom use
国际金融英文PPT课件 (9)
Firms Use?
5
8-5
13.1 Forward Market Hedge: Exports
If you are going to receive foreign currency in the future, agree to sell the foreign currency in the future at a set price by entering into short position in a forward contract.
Value of €1 in $ $1.20/€ $1.50/€ $1.80/€ in one year
But he will be worse off if the pound appreciates.
Unhedged
payable
9
Forward Market Hedge
If he agrees
Importer
Forward Contract Counterparty
Foreign Supplier
Forward Market Hedge: Importer’s Example
A U.S.-based importer of Italian shoes has just ordered next year’s inventory. Payment of €100M is due in one year. If the importer buys €100M at the forward exchange rate of $1.50/€, the cash flows at maturity look like this:
Chapter Outline
13.1 Forward Market Hedge 13.2 Money Market Hedge 13.3 Options Market Hedge 13.4 Cross-Hedging Minor Currency Exposure (次要
5
8-5
13.1 Forward Market Hedge: Exports
If you are going to receive foreign currency in the future, agree to sell the foreign currency in the future at a set price by entering into short position in a forward contract.
Value of €1 in $ $1.20/€ $1.50/€ $1.80/€ in one year
But he will be worse off if the pound appreciates.
Unhedged
payable
9
Forward Market Hedge
If he agrees
Importer
Forward Contract Counterparty
Foreign Supplier
Forward Market Hedge: Importer’s Example
A U.S.-based importer of Italian shoes has just ordered next year’s inventory. Payment of €100M is due in one year. If the importer buys €100M at the forward exchange rate of $1.50/€, the cash flows at maturity look like this:
Chapter Outline
13.1 Forward Market Hedge 13.2 Money Market Hedge 13.3 Options Market Hedge 13.4 Cross-Hedging Minor Currency Exposure (次要
国际金融英文PPT课件 (4)
Market participants can be categorized into five groups including international banks, their customers, nonbank dealers, FX brokers, and central banks.
About 100-200 banks worldwide stand ready to make a market in foreign exchange. The interbank market accounts for 86% FX market in 2010.
Nonbank dealers, including investment banks, mutual funds, pension funds, and hedge funds account for about 47% of the interbank trading volume in 2010.
The structure of the FX market is one of the primary functions of a commercial banker: to assist clients in the conduct of international commerce. (*)
The spot and forward FX markets are OTC. It is a worldwide linkage of currency trading banks,
nonbank dealers, and FX brokers, who assist in trade, connected to one another vie a network of telephone, computer terminals, and automated dealing systems. Reuters (路透社) and EBS (电子经纪服务公司) are the largest vendors of quoting screen monitors used in trading currencies.
About 100-200 banks worldwide stand ready to make a market in foreign exchange. The interbank market accounts for 86% FX market in 2010.
Nonbank dealers, including investment banks, mutual funds, pension funds, and hedge funds account for about 47% of the interbank trading volume in 2010.
The structure of the FX market is one of the primary functions of a commercial banker: to assist clients in the conduct of international commerce. (*)
The spot and forward FX markets are OTC. It is a worldwide linkage of currency trading banks,
nonbank dealers, and FX brokers, who assist in trade, connected to one another vie a network of telephone, computer terminals, and automated dealing systems. Reuters (路透社) and EBS (电子经纪服务公司) are the largest vendors of quoting screen monitors used in trading currencies.
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LS calculate the forward cross rate of GBP/AUD • spot rate:GBP/USD=1.5630/40 6-month points:318/315 • spot rate:AUD/USD=0.6870/80 6-month points:157/154
Forward transaction and Quotes
• Forward quotations may also be expressed as the percent deviation from the spot rate.
• This method of quotation facilitates comparing premiums or discounts in the forward market with interest rate differentials.
• value date has three types: Value Spot/VAL SP; Value Tomorrow/VAL TOM; Value Today/VAL TOD.
Spot transaction
• Procedure of Spot transaction
― Inquiry When a bank needs to transact foreign exchange with other banks, trader should firstly inquire to other banks by telephones, telex ― Quotation
The application of forward transaction
Forward transaction for speculation
speculators who believe the spot rate in the future will differ with the current forward rate would take part in the forward transaction in order to make the profits. the speculation has two forms: Buy long The speculators anticipate that the spot exchange rate in the future will increase, so they will buy the forward exchange.
Spot transaction example
Bank A:HI BANK OF A CALLING SPOT GBP AGAINST USD PLS Bank B:65/95 Bank A:MINE USD3 Bank B:OK DONE WE SELL USD3AGAINST GBP AT 1.6765 VALUE 16/2/06 GBP TO BKL BK FOR OUR A/C 123456 Bank A:USD TO KKY BK FOR OUR A/C 654321
Forward transaction and Quotes
• Forward rates are typically quoted in terms of points. • A forward quotation which is expressed in points is not a foreign exchange rate as such. • Rather, it is the difference between the forward rate and the spot rate.
The application of forward transaction
Forward transaction for value-keeping
the dealers are risk-averse and wish to hedge against an unfavorable change in the exchange rate. Ways: the selling sum=uncovered foreign exchange assets the buying sum=uncovered foreign exchange liabilities
Forward transaction and Quotes
• Conclusion :
the points is quoted as “smaller~bigger”, the forward rate equals to spot rate plus the points. ―If the points is quoted as “bigger~smaller”, the forward rate equals to spot rate minus the points.
Example
• In the New York forex market, the spot rate of USD/JPY is 130.47/57, the points of 1month USD is 40/50. And the spot rate of USD/EUR is 1.8252/62, the points of 1month USD is 30/20. What are the forward rate of USD/JPY and USD/EUR?
Case 2
• On a certain day, USD/JPY 6-month forward exchange rate in the Tokyo foreign exchange market is 126.00/10. A Japanese speculator believes that the spot rate of USD/JPY will be 130.20/30 half a year later. If the anticipation is right, and the speculator brought 6-month forward USD valued in $1,000,000, what’s the sum of profit?
The answer:
• • • • Under the forward transaction Exporter can receive: 1,000,000*(1.6750-0.0030)=$1,672,000 If he sell the spot GBP on value date, the exporter can receive: • 1,000,000*1.6250=$1,625,000 • So the spread=1,672,0001,625,000=$47,000
Forward transaction example
A: B: A: B: GBP 0.5 Mio GBP 1.8920/25 MINE, Pls adjust to 1 Month OK Done Spot/1 month 93/89 at 1.8836 We sell GBP 0.5 Mio Val October/25/06 USD to My NY A: OK All agreed, My GBP to My London Tks,BI B: OK, BI and Tks
― Confirmation If the reply is “OK, Done”, The two parties also should confirm the sort of currencies, exchange rate, quantity, value date and settlement methods etc. ― Delivery
quotation is the linchpin segment of forex, because it relates to whether the forex could be bought or sold.
― Making
a deal
when quotation banks report the price, enquiry banks should give the reply whether to buy or sell, and the quantity.
• The exchange rate is established at the time of the agreement, but payment and delivery are not required until maturity.
• Forward exchange rates are usually quoted for value dates of one, two, three, six and twelve months. • Buying Forward and Selling Forward describe the same transaction (the only difference is the order in which currencies are referenced.)
Answer
• 1-month forward rate of USD/JPY is the bid=130.47+0.40=130.87 the ask=130.57+0.50=131.07 • 1-month forward rate of USD/EUR is the bid=1.8252-0.0030=1.8222 the ask=1.8262-0.0020=1.8240
Chapter 10
instruments
Transactions in the foreign exchange Market
Forward transaction and Quotes
• Forward quotations may also be expressed as the percent deviation from the spot rate.
• This method of quotation facilitates comparing premiums or discounts in the forward market with interest rate differentials.
• value date has three types: Value Spot/VAL SP; Value Tomorrow/VAL TOM; Value Today/VAL TOD.
Spot transaction
• Procedure of Spot transaction
― Inquiry When a bank needs to transact foreign exchange with other banks, trader should firstly inquire to other banks by telephones, telex ― Quotation
The application of forward transaction
Forward transaction for speculation
speculators who believe the spot rate in the future will differ with the current forward rate would take part in the forward transaction in order to make the profits. the speculation has two forms: Buy long The speculators anticipate that the spot exchange rate in the future will increase, so they will buy the forward exchange.
Spot transaction example
Bank A:HI BANK OF A CALLING SPOT GBP AGAINST USD PLS Bank B:65/95 Bank A:MINE USD3 Bank B:OK DONE WE SELL USD3AGAINST GBP AT 1.6765 VALUE 16/2/06 GBP TO BKL BK FOR OUR A/C 123456 Bank A:USD TO KKY BK FOR OUR A/C 654321
Forward transaction and Quotes
• Forward rates are typically quoted in terms of points. • A forward quotation which is expressed in points is not a foreign exchange rate as such. • Rather, it is the difference between the forward rate and the spot rate.
The application of forward transaction
Forward transaction for value-keeping
the dealers are risk-averse and wish to hedge against an unfavorable change in the exchange rate. Ways: the selling sum=uncovered foreign exchange assets the buying sum=uncovered foreign exchange liabilities
Forward transaction and Quotes
• Conclusion :
the points is quoted as “smaller~bigger”, the forward rate equals to spot rate plus the points. ―If the points is quoted as “bigger~smaller”, the forward rate equals to spot rate minus the points.
Example
• In the New York forex market, the spot rate of USD/JPY is 130.47/57, the points of 1month USD is 40/50. And the spot rate of USD/EUR is 1.8252/62, the points of 1month USD is 30/20. What are the forward rate of USD/JPY and USD/EUR?
Case 2
• On a certain day, USD/JPY 6-month forward exchange rate in the Tokyo foreign exchange market is 126.00/10. A Japanese speculator believes that the spot rate of USD/JPY will be 130.20/30 half a year later. If the anticipation is right, and the speculator brought 6-month forward USD valued in $1,000,000, what’s the sum of profit?
The answer:
• • • • Under the forward transaction Exporter can receive: 1,000,000*(1.6750-0.0030)=$1,672,000 If he sell the spot GBP on value date, the exporter can receive: • 1,000,000*1.6250=$1,625,000 • So the spread=1,672,0001,625,000=$47,000
Forward transaction example
A: B: A: B: GBP 0.5 Mio GBP 1.8920/25 MINE, Pls adjust to 1 Month OK Done Spot/1 month 93/89 at 1.8836 We sell GBP 0.5 Mio Val October/25/06 USD to My NY A: OK All agreed, My GBP to My London Tks,BI B: OK, BI and Tks
― Confirmation If the reply is “OK, Done”, The two parties also should confirm the sort of currencies, exchange rate, quantity, value date and settlement methods etc. ― Delivery
quotation is the linchpin segment of forex, because it relates to whether the forex could be bought or sold.
― Making
a deal
when quotation banks report the price, enquiry banks should give the reply whether to buy or sell, and the quantity.
• The exchange rate is established at the time of the agreement, but payment and delivery are not required until maturity.
• Forward exchange rates are usually quoted for value dates of one, two, three, six and twelve months. • Buying Forward and Selling Forward describe the same transaction (the only difference is the order in which currencies are referenced.)
Answer
• 1-month forward rate of USD/JPY is the bid=130.47+0.40=130.87 the ask=130.57+0.50=131.07 • 1-month forward rate of USD/EUR is the bid=1.8252-0.0030=1.8222 the ask=1.8262-0.0020=1.8240
Chapter 10
instruments
Transactions in the foreign exchange Market