文档介绍：Chapter 15
Foreign Exchange: the structure and operation of the FX market
Learning objectives
Understand the naturenctionality
(cont.)
FX market participants (cont.)
FX market participants can be classified as:
FX dealers and brokers
central banks
firms conducting international trade transactions
investors and borrowers in the international money markets and capital markets
foreign currency speculators
arbitrageurs
FX dealers and brokers
FX dealers
Are financial institutions, typically commercial banks and investment banks, that quote two-way (. buy and sell) prices and act as principals in the FX market
Usually licensed or authorised by the central banks of the countries in which they operate
FX brokers
Transact almost exclusively with FX dealers; they obtain the best prices in global FX markets matching FX dealers’ buy and sell orders for a fee
Central banks
Enter FX market to:
purchase foreign currency to pay for government imports or pay interest on, or redeem, government debt
change the composition of holdings of foreign currencies in managing official reserve assets
influence the exchange rate
Firms conducting international trade transactions
Exporters receive foreign currency for the sale of their goods and services
Exporters use the FX market to sell foreign currency and buy AUD
Importers use the FX market to buy foreign currency (sell AUD) for purchasing imports
Copyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Financial Institutions, Instruments and Markets 6e by Viney
Slides prepared by Anthony Stanger
Investors and borrowers in the international money markets and capital markets
Commercial bank foreign borrowings are usually converted into the home currency
Payments of interest and principal need to be made in the denominated currency of the loan
Corporations and financial institutions investing overseas
Need to purchase FX in order to make investments
Dividends or interest payments received from overseas investments w