第04章 外汇市场(讲义)简易版

Section 4.1 Text⏹Meanings of Foreign ExchangeThe term “foreign exchange” has three principal meanings. In the first place, it means the system utilized in financing international payments. Or it may refer to the subject which is studied to obtain knowledge as to the financial operations conducted to discharge international obligations.In the second place, it means the media used to discharge international obligations. For the purpose of international finance and exchange, the principal kinds of media are telegraphic transfers, mail transfers, bills, demand drafts, cheques, banker’s drafts, foreign bonds, coupons, dividend checks, pension checks, commercial and personal letters of credit, traveller’s cheques, foreign notes and coins, etc..The third meaning of the term “foreign exchange” is that it covers, in a general way, the rates at which foreign exchange is quoted.The method of quoting the prices or rates of exchange for different currencies takes one of two forms, the direct quotation method and the indirect quotation method. Under the direct quotation method, the rates are quoted in terms of a variable number of home currency per fixed foreign currency unit, and China adopts this method. Under the indirect quotation method, the units to the fixed unit of home currency, the exchange market in London practices this method.⏹Financial DerivativesSpot TransactionSpot transaction means the actual and variable amount of the currency of one country which at any given time, can be bought for a fixed sum in the currency of another country. It is a term meaning that these transactions are settled the second working day from the date of the deal.Forward OperationsForeign exchange can be bought and sold not only on a spot or cash basis, but also on a forward basis （for delivery on a stipulated future date）. Theoretically, the forwardprice for a currency can be identical with the spot price. Almost always, however, the forward price in practice is either higher （premium） or lower （discount） than the spot price.SwapsIt contains two simultaneous inseparable contract-deals, the first for spot delivery, and the second （the contrary of spot） for future delivery （in this case your position is squared）.Or, in other words: the simultaneous purchase and sale of identical amounts of a currency for different value dates.FuturesFutures are forward transactions which are traded on exchanges, i.e. not OTC （over-the-counter）. In order to be marketable on exchanges, futures are standardizedin terms of quantity, settlement dates and quotation.Currency and Interest Rate OptionsCall OptionThe right to buy a certain amount of a currency at a fixed rate at a pre-arranged expiry date.Put OptionThe right to sell a certain amount of a currency at a fixed rate （strike price） at a pre-arranged expiry date.Exchange ControlExchange control means official control in the foreign exchange dealings of a country. The control may extend over a wide area, covering the import and export of goods and services, remittances from the country, inflow and outflow of capital, rate of exchange, method of payment, maintenance of balance in foreign centers, acquisition and holding of foreign securities, financial relationship between residents and non-residents. Exchange control restricts the right of holders of a currency to exchange it for other currencies. It thereby renders a currency inconvertible.Section 4.2 Specialized TermsExchange n.foreign exchange foreign exchange reserveforeign exchange control State administration for foreign exchangefixed exchange rate systemfloating exchange rate systemChicago mercantile exchangeNew York Mercantile ExchangeLondon Metal ExchangeIn the Shenzhen Stock Exchange, early VC firms in the medium- and small-sized enterprises are not allowed to exit, namely to sell their shares.He further noted that to encourage foreign direct investment, China had granted national treatment to FIEs in exchange administration.Where can I exchange my American dollars for foreign money?Convertible adj.China’s foreign exchange reform is intended to put the Chinese Yuan gradually closer to being a freely convertible currencyThe purpose is to further complete the exchange rate formation mechanism and steadily advance the process of the convertibility of the CNY.Fluctuate v.The external risk mainly means fluctuation of interest rate and exchange rate, inflation and policies.Volatility n.Excess volatility and disorderly movements in exchange rates are undesirable for economic growth.Discount n.We have adjusted our price and give you a special discount of 3 percent.handle all kinds of remittance, settlement, and discount of commercial billsThe discount rate is what Federal Reserve charges banks to borrow money.Option n.Call option: Option to purchase designated securities at a predetermined price within a specified time limit.The government has two options: to reduce spending or to increase taxes.Discharge v.free from debt / discharge of a debtThe goods will be sold for a fraction of their value in order to discharge the debt. Transfer v. n.A shareholder's transfer of its shares must be carried out through a legally established stock exchange.股东转让其股份，必须在依法设立的证券交易场所进行。