国际金融课件第3章4课时

Suppose that bank in London may be unwilling to continue holding the pounds… • The top-tier inter-bank market accounts for 53% of all
transactions. • Participants in inter-bank market: commercial banks
U.S. $
Yen
Euro
Can $
U.K. Pound
wenku.baidu.com
AU $
Swiss Franc
Last Trade
N/A
11:59pm 11:58pm 11:58pm 11:56pm 11:58pm 11:59pm
ET
ET
ET
ET
ET
ET
1 U.S. $
=
1 107.26 0.7073 1.0678 0.5675 1.2402 1.1296
1
Source: www. finance. Yahoo. com
2008 All copy rights reserved.
15
Key Currency Cross Rates
The New York foreign exchange selling rates below apply to trading among banks in amounts of $1 million and more, as quoted at 4 p.m. Eastern time by Dow Jones and other sources. Retail transactions provide fewer units of foreign currency per dollar.
vs. $42 billion on NY Stock Market per day,2001) Most trading involves U.S. dollars Retail vs. Interbank part of the market
2008 All copy rights reserved.
Bank in New York
Instruct to take dollars from its demand deposit account and pay to the U.S. producer
2008 All copy rights reserved.
10
Inter-bank Market
Buying Rate
GBP
1200.46
HKD
87.53
USD
682.69
CHF
603.48
JPY
6.3568
CAD
638
AUD
549.56
EUR
962.95
Cash Buying Rate
1175.15 86.83 677.22 590.75 6.2228 624.55 537.97 942.65
1 U.K. Pound = 1.762 188.9974 1.2463 1.8816
1 2.1852 1.9904
1 AU $
= 0.8063 86.4891 0.5703 0.8611 0.4576
1 0.9109
1 Swiss Franc
= 0.8853 94.954 0.6262 0.9453 0.5024 1.0979
2008 All copy rights reserved.
12
Exchange Rates
• As a U.S. dollar price of the other currency.
$1.7621/£ $0.1462/rmb
• As the price of the U.S. dollar in units of the other currency.
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6
Most traded currencies
Rank
1 2 3 4 5 6 7 8-9 8-9 10 11 12
Currency distribution of reported FX market turnover
Currency
ISO 4217 code (Symbol)
3
Foreign Exchange Market
The foreign exchange market is the market in which national moneys are traded for other national moneys.
24-hour market / geographic dispersion Enormous trading volumes ($1.2 trillion on Forex
AUD ($)
6.7%
Canadian dollar
CAD ($)
4.2%
Swedish krona
SEK (kr)
2.8%
Hong Kong dollar
HKD ($)
2.8%
Norwegian krone New Zealand dollar Mexican peso
NOK (kr) NZD ($) MXN ($)
% daily share (April 2007)
U.S. dollar
USD ($)
86.3%
Euro
EUR (€)
37.0%
Japanese yen
JPY (¥)
16.5%
Pound sterling
GBP (£)
15.0%
Swiss franc
CHF (Fr)
6.8%
Australian dollar
The price of the other currency in units of RMB
2008 All copy rights reserved.
14
Cross Rates in Spot Market
Major Currency Cross Rates
Sep.09,2008
Currency
and investment banks • Active participants in retail part of the market: smaller
investment banks, multi-national corporations, hedge funds, pension funds, insurance companies, mutual funds, other institutional investors
CHAPTER 3
THE FOREIGN EXCHANGE MARKET
2008 All copy rights reserved.
2
Foreign Exchange
• Foreign exchange is the act of trading different nations’ moneys.
2.86% service providers.
2008 All copy rights reserved.
8
Levels of Access
• Stock market vs. Forex market:
✓ No central exchange : OTC market ✓ Forex market is divided into levels of access.
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9
Retail Markets
A jet plane
British firm
U.S. producer
Ask its bank to convert pounds into dollars
Bank in London
Transfer dollars to its account
2008 All copy rights reserved.
11
Exchange Rates
An exchange rate is the price of one currency in terms of another currency.
· Two currencies involved · Timing of delivery 1. Spot 2. Forward (An other rate is the future spot rate.)
2008 All copy rights reserved.
5
Market Size
Main FX market average daily turnover, 1988 - 2007, in billions of USD
Source: Bank for International Settlements (December 2007)
Source: Bank of China, www. boc. cn
Selling Rate Middle Rate
1210.1 87.86 685.43 608.32 6.4079 643.13 553.97 970.68
1203.84 87.7
684.06 n.a
6.3853 n.a n.a
965.07
• Retail parts vs. Interbank parts
✓ Trading volume ✓ Difference in spreads : difference between bid and ask
price
EUR/USD： 0.7070/0.7073 for interbank market 0.7000/0.7100 for banknotes or travelers' checks
£0.5675/$ rmb6.8406/$
• The reciprocals of each other.
Direct Quotation of RMB
2008 All copy rights reserved.
13
Spot Exchange Rate
Date: 2008/09/10
Currency Name
✓ Demand deposits in banks ✓ Paper moneys ✓ Coins
• Foreign exchange rate is the price of one nation’s money in terms of another nation’s money.
2008 All copy rights reserved.
2.2% 1.9% 1.3%
Source: Bank for International Settlements ,2007
Other
16.8%
Total
200%
2008 All copy rights reserved.
7
Top 10 currency traders
Rank
1 2 3 4 5 6 7 8 9 10
Volume
21.70%
15.80%
9.12%
7.49%
7.30%
4.19% Source: Euromoney
4.10%
FX survey FX Poll 2008. The
3.58% Euromoney FX
survey is the largest
3.47% global poll of
foreign exchange
4
24-Hour Market
In Beijing Time, the following markets are most active during:
• Sidney 7:00-12:00 • Tokyo 8:00-14:00 • Hong Kong/Singapore 9:00-16:00 • Frankfurt Summer 14:00-23:00 Winter15:00-0:00 • London Summer 15:00-23:30 Winter 16:00-0:30 • New York Summer 20:30-3:00 Winter 21:30-4:00 • West Coast Summer 21:30-4:00 Winter 22:30-5:00
1Yen
=
0.00932 3
1 0.006594 0.009956 0.005291 0.011562 0.010531
1 Euro
= 1.4138 151.6441
1 1.5097 0.8024 1.7533
1.597
1 Can $
= 0.9365 100.4448 0.6624
1 0.5315 1.1614 1.0578
% of overall volume, May 2008 Name
Deutsche Bank UBS AG Barclays Capital Citibank Royal Bank of Scotland JP Morgan HSBC Lehman Brothers Goldman Sachs Morgan Stanley