普格尔《国际贸易（第17版）》 英文手册Pugel_17e_chap017_IM.docxVIP

PAGE PAGE 135 ? 2016 by McGraw-Hill Education. ?This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. ?This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.? Chapter 17 The Foreign Exchange Market Overview The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for immediate exchange. The forward exchange rate is the price agreed to today for exchanges that will take place in the future. An exchange rate is confusing because there is no natural way to quote the price. The currency that is being priced or valued by the rate is the currency that is in the denominator. At the center of the foreign exchange market are a group of banks that use computers and telecommunications to conduct trades with their customers (the retail part of the market) and with each other (the interbank part of the market). Most foreign exchange trades are conducted by exchanging ownership of demand deposits denominated in different currencies. The box “Foreign Exchange Trading” notes the immense size and some of the characteristics of the foreign exchange market. We can picture the foreign exchange market by using demand and supply curves. Exports of goods and services and capital outflows (as well as income payments to foreigners) create a demand for foreign currency, as payments for these items typically require that at some point in the payment process the home currency is exchanged for the foreign currency to pay for the items that the home residents are buying. Imports of goods and services and capital inflows (as well as income received from foreign sources) create a supply of foreign currency, as payments for