國(guó)際金融英文版ch3(已修改)
2025-02-25 06:50 本頁(yè)面
【正文】 Chapter 3 Foreign Exchange Market and Foreign Exchange Rate Foreign Exchange Market ? Foreign exchange is another country’s money. The dynamic meaning of the foreign exchange refers to the act of trading different country’s currencies. ? Convertibility means a currency can be freely exchanged for another currency. This is the most important characteristic of the foreign exchange. ? Foreign exchange rate is the price of one currency in terms of another. ? Foreign exchange market is the place where currencies are bought and sold. ? The foreign exchange market is by far the largest financial market in the world. ? Foreign exchange market has two functions: the first is to convert one currency into another (the spot exchange market)。 the second is to provide insurance against foreign exchange risk (the forward exchange market). ? The foreign exchange market is an informal, overthecounter and aroundtheclock market. ? It has no centralized meetingplace and no formal requirements for participation. ? The market never sleeps. Tokyo, London, and New York are all shut for only 3 hours out of every 24. During these three hours, trading continues in a number of minor centers, particularly San Francisco and Sydney. Measuring foreign exchange market activity: Average electronic conversions per hour ? As of 2023, more than $3 trillion are traded in this market on a daily basis. This was a massive increase of nearly 70% over the 2023 survey’s estimate of $ trillion. ? The . dollar was involved in more than 90% of all foreign exchange transactions, followed by the euro (38%), yen (23%), and British pound sterling (13%). ? London is the largest world foreign exchange market, followed by New York and Tokyo. London accounts for % of daily world exchange. New York is about 16%. Global foreign exchange market turnover, 1998 2023 (daily averages in April, billions of . dollar) $0$200$400$600$800$1,000$1,200$1,400$1,600$1,800$2,0001998 2023 2023 2023 2023Spot Forwards Swaps Top 10 geographic trading center in the foreign exchange market, 19922023 (daily averages in April, billions of $) ? Foreign exchange market structure Customers buy $ with ￥ Customers buy ￥ with $ Local banks Local banks Major banks Interbank markets Foreign exchange brokers MNCs Others Participants in the foreign exchange market ? Retail customers are made up of individuals, international investors, small businesses, speculators or the like who need foreign exchange. ? Commercial banks (market dealers) carry out buy/sell orders from their retail clients and buy/sell currencies on their own account. ? Dealers often function as market makers who stands ready to buy and sell at quoted exchange rates, earning their profit by the difference of the bid and ask price. ? Small to mediumsize banks are not market makers in the interbank market. They buy from and sell to larger banks to offset retail transactions with their own customers. ? Foreign exchange brokers do not put their
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