国际金融英语Part Three Foreign Exchange and Foreign Exchange Market.pptx

Unit 6. Foreign Exchange Market;I. Definitions of Foreign Exchange Foreign Exchange Market;A. Foreign exchange is defined as the currency of another country. E.g. To a Japanese, u.s. dollar is foreign exchange, and to an American, Japanese Yen is foreign exchange. B. The foreign exchange market is a market for converting the currency of one country into that of another country. The major participants in the foreign exchange market are large commercial banks that operate at two levels-retail and inter-bank: a) at the retail level, they deal with bank customers who want to buy or sell foreign exchange; b) at the inter-bank level, usually through foreign exchange brokers, they trade in foreign exchange with other domestic and foreign banks, and brokers will receive commissions for their services. ;II. The Functions of Foreign Exchange Market ;A. Currency Conversion;A. Currency Conversion;B. Insuring Against Foreign Exchange Risk;III. Characteristics of Foreign Exchange Market;The foreign exchange market is a global single market of banks, brokers, and foreign exchange dealers in many locations connected by electronic communication systems, such as telephone, fax and computer. The foreign exchange market has been growing at a rapid pace, which reflects a general growth in the volume of cross-border trade and investment. The foreign exchange market never sleeps, and it provides 24-hour trading, because of the development of Internet technology. Most foreign exchange transactions involve dollars. Dealers may trade one country’s currency for another one’s with the dollars as intermediary, because the volume of international transactions involving dollars is great. It is not hard to find dealers who wish to trade dollars for other currencies. Euro US dollars Japanese Yen trading cost is bigger;Unit 7. Foreign Exchange Rate; I. Definition of Foreign Exchange Rate;II. Quotation Methods of Exch