金融英语-5-International Finance

Part5InternationalFinanceChapterOutline：5.1ForeignExchangeMarket5.2InternationalBankingServices5.3GlobalTrendsinFDI5.1ForeignExchangeMarket5.1.1FunctionandStructureoftheFOREXMarket5.1.2TheSpotMarket5.1.3TheForwardMarket5.1.1TheFunctionandStructureoftheFOREXMarketFOREXMarketParticipantsCorrespondentBankingRelationshipsFOREXMarketParticipantsTheFOREXmarketisatwo-tiered(双重的)market:InterbankMarket(Wholesale批发)About700banksworldwidestandreadytomakeamarketinForeignexchange.Nonbankdealersaccountforabout20%ofthemarket.ThereareFXbrokerswhomatchbuyandsellordersbutdonotcarryinventoryandFXspecialists.ClientMarket(Retail零售)Marketparticipantsincludeinternationalbanks,theircustomers,nonbankdealers,FOREXbrokers,andcentralbanks.CorrespondentBankingRelationshipsLargecommercialbanksmaintaindemanddepositaccountswithoneanotherwhichfacilitatestheefficientfunctioningoftheforexmarket.Internationalcommercialbankscommunicatewithoneanotherwith:SWIFT:TheSocietyforWorldwideInterbankFinancialTelecommunications.CHIPS:ClearingHouseInterbankPaymentsSystemECHOExchangeClearingHouseLimited,thefirstglobalclearinghouseforsettlinginterbankFOREXtransactions.5.1.2TheSpotMarketSpotRateQuotationsTheBid-AskSpreadSpotFXtradingCrossRatesSpotRateQuotationsDirectquotation(直接标价法)theU.S.dollarequivalent（一单位外币付多少本币）e.g.“aJapaneseYenisworthaboutapenny”IndirectQuotation(间接标价法)thepriceofaU.S.dollarintheforeigncurrency（一单位本币付多少外币）e.g.“youget100yentothedollar”SpotRateQuotationsThedirectquoteforBritishpoundis:£1=$1.5627CountryUSDequivFridayUSDequivThursdayCurrencyperUSDFridayCurrencyperUSDThursdayArgentina(Peso)0.33090.32923.02213.0377Australia(Dollar)0.59060.59341.69321.6852Brazil(Real)0.29390.28793.40253.4734Britain(Pound)1.56271.5660.63990.63861MonthForward1.55961.56290.64120.63983MonthsForward1.55351.55680.64370.64236MonthsForward1.54451.54770.64750.6461Canada(Dollar)0.66920.67511.49431.48131MonthForward0.66810.67411.49681.48353MonthsForward0.66580.67171.5021.48886MonthsForward0.6620.66781.51061.4975SpotRateQuotationsTheindirectquoteforBritishpoundis:£.6399=$11.49751.51060.66780.6626MonthsForward1.48881.5020.67170.66583MonthsForward1.48351.49680.67410.66811MonthForward1.48131.49430.67510.6692Canada(Dollar)0.64610.64751.54771.54456MonthsForward0.64230.64371.55681.55353MonthsForward0.63980.64121.56291.55961MonthForward0.63860.63991.5661.5627Britain(Pound)3.47343.40250.28790.2939Brazil(Real)1.68521.69320.59340.5906Australia(Dollar)3.03773.02210.32920.3309Argentina(Peso)CurrencyperUSDThursdayCurrencyperUSDFridayUSDequivThursdayUSDequivFridayCountrySpotRateQuotationsNotethatthedirectquoteisthereciprocaloftheindirectquote:6399.15627.11.49751.51060.66780.6626MonthsForward1.48881.5020.67170.66583MonthsForward1.48351.49680.67410.66811MonthForward1.48131.49430.67510.6692Canada(Dollar)0.64610.64751.54771.54456MonthsForward0.64230.64371.55681.55353MonthsForward0.63980.64121.56291.55961MonthForward0.63860.63991.5661.5627Britain(Pound)3.47343.40250.28790.2939Brazil(Real)1.68521.69320.59340.5906Australia(Dollar)3.03773.02210.32920.3309Argentina(Peso)CurrencyperUSDThursdayCurrencyperUSDFridayUSDequivThursdayUSDequivFridayCountryTheBid-AskSpreadThebidprice（买入价）isthepriceadealeriswillingtopayyouforsomething.Theaskprice（卖出价）istheamountthedealerwantsyoutopayforthething.Thebid-askspreadisthedifferencebetweenthebidandaskprices.SpotFXtradingIntheinterbankmarket,thestandardsizetradeisaboutU.S.$10million.Abanktradingroomisanoisy,activeplace.Thestakesarehigh.赌注很高The“longterm”isabout10minutes.CrossRatesSupposethatS(£/$)=2i.e.£1=$2andthatS($/¥)=6.5i.e.$1=¥6.5Whatmustthe£/¥crossratebe?S(£/¥)=S(£/$)*S($/¥)=2*6.5=13SpotForeignExchangeMicrostructureMarketMicrostructurereferstothemechanicsofhowamarketplaceoperates.Bid-AskspreadsinthespotFXmarket:increasewithFXexchangeratevolatility（波动）decreasewithdealercompetition.Privateinformationisanimportantdeterminantofspotexchangerates.5.1.3TheForwardMarketForwardRateQuotationsLongandShortForwardPositionsForwardCrossExchangeRatesSwapTransactionsForwardPremiumTheForwardMarketAforwardcontractisanagreementtobuyorsellanassetinthefutureatpricesagreedupontoday.Ifyouhaveeverhadtoorderanout-of-stock（缺货）textbook,thenyouhaveenteredintoaforwardcontract.ForwardRateQuotationsTheforwardmarketforFOREXinvolvesagreementstobuyandsellforeigncurrenciesinthefutureatpricesagreedupontoday.Bankquotesfor1,3,6,9,and12monthmaturitiesarereadilyavailableforforwardcontracts.Longer-termswapsareavailable.ForwardRateQuotationsConsidertheexamplefromabove:forJapaneseyen,thespotrateis$1.5627=£1.00Whilethe180-dayforwardrateis$1.5445=£1.00What’supwiththat?SpotRateQuotationsClearlythemarketparticipantsexpectthatthepoundwillbeworthlessindollarsinsixmonths.1.49751.51060.66780.6626MonthsForward1.48881.5020.67170.66583MonthsForward1.48351.49680.67410.66811MonthForward1.48131.49430.67510.6692Canada(Dollar)0.64610.64751.54771.54456MonthsForward0.64230.64371.55681.55353MonthsForward0.63980.64121.56291.55961MonthForward0.63860.63991.5661