agentleintroduction國際金融香港大學(xué)wongka(已修改)
2025-01-06 09:46 本頁面
【正文】 1 International Finance: A gentle introduction WONG Ka Fu 10th January 2023 2 International Finance is about... ?Exchange rate ?Open Macroeconomies 3 International Finance studies ?Effects of changes in exchange rates on economies: price levels, unemployment, output, importexport, etc. ?The determinants of exchange rates: fiscal and moary policies, performance of the economies, etc. ?The operations and interdependence of open economies 4 Exchange rate is important because ?Each country has its own currency, and hence moary policy. ?Countries are open, ., nonzero international trade among countries. 5 Exchange rate market facilitates the trade of goods between two countries Japanese products US products Problem: double coincidence of wants 6 Exchange rate market facilitates the trade of goods between two countries Japanese products US products Japanese Yen US dollar Foreign exchange market 7 What is exchange rate? 8 Exchange Rate and Its Derivatives ?Exchange rate defined: ?The price of currencies ?The amount of domestic currency you have to pay to buy a unit foreign currency (bank’s selling rate of the foreign currency) ?The amount of domestic currency you will receive when you sell a unit of foreign currency (bank’s buying rate of the foreign currency) 9 Where can you find the rates? 10 Supply and demand conditions determines exchange rate Exchange rate is determined by supply and demand because Foreign exchange market is petitive Exchange rate is a price and 11 Supply and demand conditions determines exchange rate Suppose Demand for JPY increases Suddenly a lot of people want to switch from USD to JPY Price of JPY will increase, ., need more USD to buy one unit of JPY Supply of USD increases Price of USD will decrease, ., need less JPY to buy one unit of USD 12 ?Bank’s selling rate Bank’s buying rate ?selling rate buying rate = spread ?because of ?the paper work involved ?bank’s opportunity cost and risk of holding foreign currencies ?necessary security precautions ?possibility of receiving counterfeit bills 13 Telegraphic transfer ?Often written in short form TT. ?For TT, spread is smaller ?because of ?less paper work involved ?basically bank has no opportunity cost and risk of holding foreign currencies ?no need for security precautions ?no need to worry about the possibility of receiving counterfeit bills 14 Spread ?Varies with the size of your order / purchase. ?The larger your order size, the smaller the spread, that is, the bank can offer you a better rate. ?Mainly because less paper work is involved. 15 Bank’s buying rate Bank’s selling rate? 16 Bank’s buying rate Bank’s selling rate if the rate is quoted as foreign currency per local currency, ., in US. ?Bank’s buying rate = the amount of USD
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