商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international economychap.14 functions of foreign exchange market.ppt

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1、FunctionsofForeignExchangeMarketFunctionsofForeignExchangeMarketForeignexchangemarketisamarketforconvertingthecurrencyofonecountryintothatofanothercountry.Themajorparticipantsintheforeignexchangemarketarelargecommercialbanksthatoperateattwolevels----retailan

2、dinter-bank.Attheretaillevel,theydealwithbankcustomerswhowanttobuyorsellforeignexchange.Attheinter-banklevel,theytradeinforeignexchangewithotherdomesticandforeignbanks,inter-banktransactionsarebothdirectandthroughexchangebrokerswhoreceiveasmallcommissionfort

3、heirservices.Manybanksprefertopayfeestobrokersratherthanincurtheexpenseofsupportingafull-time,professionaltradingstaff.FunctionsofForeignExchangeMarketForeignexchangemarketservesthreemainfunctions.Thefirstistoconvertthecurrencyofonecountryintothatofanotherco

4、untryaspayment,andthesecondistoprovidesomeinsuranceagainstforeignexchangerisk,thethirdisjusttomakeprofitbyusingtheforeignexchangemarket.FunctionsofForeignExchangeMarket1.internationalclearing2.hedging3.speculationFunctionsofForeignExchangeMarket1.internation

5、alclearingCompaniesengagedininternationaltradeandinvestmentaremajorparticipantsintheforeignexchangemarket.Internationalbusinesseshavetwomainusesofforeignexchangemarket.FunctionsofForeignExchangeMarketFirst,thepaymentsacompanyreceivesforitsexportandtheincomei

6、treceivesfromforeigninvestmentsmaybeinforeigncurrencies.Tousethosefundsinitshomecountry,thecompanymustconvertthemtoitshomecountry’scurrency.ConsidertheScottishdistillerythatexportsitswhiskytotheU.S.Thedistilleryispaidindollars,butsincethosedollarscan’tbespen

7、tinGreatBritain,theymustbeconvertedintoBritishpounds.FunctionsofForeignExchangeMarketSecond,internationalbusinessesuseforeignexchangemarketswhentheymustpayaforeigncompanyforitsproductsorservicesinitscountry’scurrency.FunctionsofForeignExchangeMarketThefastes

8、tpossiblecommunicationsareused.Today’sforeignexchangemarketsfollowthesunaroundtheglobewiththehelpofcommunicationssatellites.Verbaldealsarequicklyconsummatedbycable.Thewholeprocessofbuyingandsell