TAILIEUCHUNG - Lecture Financial institutions, instruments and markets (7e): Chapter 15 – Viney, Phillips

Chapter 15 - Foreign exchange: the structure and operation of the FX market. This chapter include objectives: Understand the nature of global FX markets, discuss participants in the FX markets, describe the functions and operations of FX markets, outline instruments traded in FX markets,. | Chapter 15 Foreign Exchange: the structure and operation of the FX market Learning objectives Understand the nature of global FX markets Discuss participants in the FX markets Describe the functions and operations of FX markets Outline instruments traded in FX markets Explain conventions for quotation and calculation of exchange rates and forward exchange rates, and complicating factors Recognise important FX impacts of the European Monetary Union Chapter organisation Exchange rate regimes FX Market participants operation of the FX market Spot and forward transactions Spot market quotations Forward market quotations European monetary union and FX markets Summary Exchange rate regimes Each country or monetary union responsible for determining own exchange rate regime Exchange rate is value of one currency relative to that of another currency Major currencies like USD, GBP, JPY, EUR and AUD adopt floating exchange rate (free float) regime Where exchange rate determined by supply and demand factors in the FX markets (cont.) Exchange rate regimes (cont.) Other types of exchange rate regimes include: Managed float Exchange rate held within defined band relative to other currency Crawling peg Exchange rate allowed to appreciate in controlled steps over time Linked exchange rate Value of currency tied to value of another currency or basket of currencies Chapter organisation Exchange rate regimes FX Market participants Operation of the FX market Spot and forward transactions Spot market quotations Forward market quotations European monetary union and FX markets Summary FX market participants FX markets Comprise all financial transactions denominated in foreign currency, currently estimated to be over trillion per day Facilitate exchange of value from one currency to another Internationally adopted FX market conventions to improve market .

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Foreign exchange market
• FX market participants
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Monetary policy
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet