【導(dǎo)讀】LearningObjectives?centralbank.perform.LearningObjectives?reserves.Centralbanksare“bankers’banks.”They. System.

　　

【正文】 s, with 90 days being the most mon. ? They are traded among financial institutions, industrial corporations, and securities dealers as a highquality investment and source of ready cash. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 55 How Acceptances Arise Importer applies for line of credit Importer’s bank issues letter of credit in favor of exporter Letter of credit authorizes the drawing of a time draft Importer’s bank accepts time draft from exporter’s bank Importer’s bank pays exporter’s bank discounted value of bankers’ acceptance, and then holds or sells it Bankers’ acceptance is redeemed at maturity ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 56 The Growth and Decline of Acceptance Financing ? The volume of US$ acceptances outstanding grew rapidly, from less than $400 million in 1950, to slightly more than $7 billion in 1970, and almost $80 billion in 1984. ? Then the volume declined sharply to $10 billion in 2020, as several leading export nations entered a recession, as economic problems developed in Asia, and as businesses turn to other payment and financing methods. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 57 Acceptance Rates ? Acceptances do not carry a fixed rate of interest, but are sold at a discount in the open market like Treasury bills. ? The yield on acceptances is usually only slightly higher than the yield on Treasury bills, and close to the negotiable CD rates offered by major banks, because of the high credit quality of the banks that issue the acceptances and CDs. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 58 Acceptance Rates Data Source: Board of Governors of the Federal Reserve System % 33 . 544 . 555 . 566 . 51991 1993 1995 1997 1999 2020C o m m e rci a l Pa p e rBa n ke rs 39。 A cce p t a n ce sT re a s u ry Bi l l sC e rt i f i ca t e s o f D e p o s i t? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 59 Investors in Acceptances ? Investors in acceptances include banks, industrial corporations, money market mutual funds, local governments, federal agencies, and insurance panies. ? To many investors, acceptances are a close substitute for Treasury bills, negotiable CDs, or mercial paper in terms of quality, although the acceptance market is far smaller in terms of the volume of trading. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 60 Eurocurrency Deposits ? The Eurocurrency market has arisen because of the tremendous need worldwide for funds denominated in dollars, Euros, pounds, and other relatively stable currencies. ? The Eurocurrency market represents the largest of all money markets worldwide, with total funds probably in excess of $4 trillion. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 61 Eurocurrency Deposits ? Eurodollars are deposits of . dollars in banks located outside the . ? The large majority of Eurodollar deposits are held in Europe, although Europe’s share of the total is declining. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 62 Eurocurrency Deposits ? Eurodollars and other Eurocurrency deposits are continually on the move in the form of loans. ? They are employed to finance the import and export of goods, to supplement government tax revenues, to provide working capital for the foreign operations of multinational corporations, and to provide liquid reserves for the largest banks. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 63 Eurocurrency Deposits ? When a dollar deposit is moved to a bank located outside the ., that bank then holds claim to the original dollar deposit in the . ? When a Eurodollar loan is made, the borrower receives a claim against dollars deposited in . banks. ?Funds are merely passed from one . bank to another. The total amount of dollar deposits and . bank reserves remains unchanged. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 64 Eurocurrency Maturities and Risks ? Most Eurocurrency deposits are shortterm deposits ranging from overnight to one year, although a small percentage are longterm time deposits. ? Eurocurrency deposits are known to be volatile and highly sensitive to fluctuations in interest rates and currency prices. They also carry political risk and default risk. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 65 The Supply of Eurocurrency Deposits ?Eurocurrency deposits e from … ? foreign investment ? tourism ? balance of payments (trade) settlements ? interbank funds ? government funds ?large corporations’ cash balances ? central banks supplying or absorbing funds from the banking system ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 66 Eurodollars in . Domestic Bank Operations ? Since the late 1960s, . banks have drawn heavily on Eurodollar deposits as a means of adjusting their domestic reserve positions. ? Eurodollars usually carry higher reported interest rates than many other sources of bank reserves. However, there are fewer legal restrictions on the borrowing of Eurodollars. ? . banks also aid their customers in acquiring Eurocurrency deposits and loans. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 67 Interest Rates on Eurodollar Deposits 33 . 544 . 555 . 566 . 51991 1993 1995 1997 1999 2020T re a s u ry Bi l l sC e rt i f i ca t e s o