1. foreign exchange. It is usually defined as an international means of payment expressed in foreign currency.
2. According to the definition of the International Monetary Fund, "foreign exchange is the creditor's rights held by the monetary management authorities (central bank, monetary institutions, foreign exchange stabilization fund and the Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. It can be used when there is a deficit in the balance of payments. "
3. China stipulates that foreign exchange includes: (1) foreign currency; (2) Foreign currency securities. (3) foreign currency payment voucher; (4) Other foreign exchange funds.
4. Foreign exchange can be divided into: free foreign exchange; Bookkeeping foreign exchange.
5. Foreign exchange is divided into: spot foreign exchange according to the delivery period; Forward foreign exchange.
6. Foreign exchange is divided into: trade foreign exchange; Non-trade foreign exchange.
7. According to the method of setting exchange rate, exchange rate can be divided into basic exchange rate and arbitrage exchange rate.
8. According to the price exchange rate of foreign exchange bought and sold by banks, it can be divided into buying exchange rate, selling exchange rate and spot exchange rate.
9. Exchange rates are divided into telegraphic transfer rate, letter transfer rate and bill exchange rate according to foreign exchange remittance methods.
10. It is divided into opening price and closing price according to business hours and exchange rate.
1 1. The exchange rate is divided into spot exchange rate and forward exchange rate according to the delivery time.
12, the decline of a country's currency exchange rate is beneficial to exports and unfavorable to imports.
13, the rise of a country's currency exchange rate is beneficial to imports and not conducive to exports.
14. The direct quotation method, also known as the payable price method, refers to the exchange rate expressed by converting a certain unit of foreign currency into several units of local currency.
15. Indirect pricing method, also known as accounts receivable pricing method, refers to converting a certain unit of domestic currency into several units of foreign currency to express the exchange rate.
Chapter II International Financial Markets
1, the international financial market is a place for international financial activities. Including foreign exchange and gold trading, long-term and short-term capital lending and securities issuance.
2. At present, most international foreign exchange markets have no specific trading places, but an invisible market built by traders at bank counters or through telephone, telegraph, telex, computer network and other information systems.
3. The foreign exchange market is mainly composed of the following participants: foreign exchange banks, foreign exchange brokers, various customers and the central bank.
4. international bond markets is divided into distribution market and circulation market according to raising funds and promoting capital flow.
5. The main factors that determine the bond yield are: coupon rate, issue price and repayment period.
6. The credit rating of a bond is an important factor to determine its coupon rate.
7. Bonds are issued at face value, which is called equivalent issuance; The issue below the face value is called low-priced issue, and the issue above the face value is called over-priced issue.
8. According to the nature of bonds issued, international bond markets can be basically divided into two categories: foreign bond market and European bond market.
9. The foreign bond market mainly refers to the bond market that is open to non-residents in western countries and allows them to issue bonds and raise monetary funds according to their own laws.
10. Bonds issued and circulated in the European bond market are debt certificates denominated in other freely convertible currencies outside the country where the market is located.
1 1. Eurocurrency refers to the currency deposited and traded outside the issuing country and is not controlled by the financial laws and regulations of the issuing country.
12. The types of European money markets are London, new york and tax havens.
(III) Chapter III International Monetary System
1, the international monetary system is about the international standard currency, exchange rate arrangements, the decision of national reserve assets, and the international balance of payments adjustment mechanism of various countries.
2. Under the gold standard, the exchange rate between currencies of different countries is determined according to the gold content, which is also called fixed exchange rate.
3. The exchange rate system in the Bretton Woods Agreement is a fixed exchange rate system centered on the US dollar. Its content is: (1) double hook; (2) Fixed exchange rate.
4. The double peg stipulated by the Bretton Woods system means that the US dollar is directly linked to gold, and the currencies of other countries are indirectly linked to the Yellow River through the US dollar.
5. Under the floating exchange rate system, the exchange rates of various currencies are mainly determined by market freedom and fluctuate with foreign exchange supply and demand.
6. Under the floating exchange rate system, the determination of exchange rate level is based on the purchasing power of national currencies.
7. According to whether the government intervenes, the floating exchange rate system can be divided into free floating and managed floating.
Chapter IV Foreign Exchange Trading Business
1, direct quotation: the large number comes first and the decimal number comes last, indicating a premium; Indirect pricing method: the large number comes first and the decimal number comes last, which means discount.
2. Premium means that the forward foreign exchange rate is greater than the spot foreign exchange rate; Discount means that the forward foreign exchange rate is less than the spot foreign exchange rate.
When speculators expect the exchange rate of a foreign currency to rise, they will buy the foreign currency cash in the foreign exchange market. When the exchange rate of foreign currency does rise, they will throw out foreign currency, buy it at a low price and sell it at a high price through spot foreign exchange transactions, thus making a profit. On the other hand, when speculators expect the dollar exchange rate to fall, they will sell the dollar spot in the foreign exchange market, and when the dollar exchange rate falls, they will buy the dollar spot.
Generally speaking, the currency forward exchange rate of countries with high interest rates tends to fall, while the currency forward exchange rate of countries with low interest rates tends to rise.
5. Forward foreign exchange transactions have two purposes. One is to preserve value; The other is speculative,
6. The annual interest rate of rising (paste) hydration is greater than the spread, so as to carry out time arbitrage; It is arbitrage.
7. Contents of foreign exchange option contracts: currency, amount, agreed price, insurance premium and option term.
8. In forex futures trading, in order to prevent the loss caused by one party's refusal to pay, it is stipulated that both parties must pay a certain deposit to the clearing house.
(V) Chapter V Foreign Exchange Risks
1, the exporter bears the risk of falling foreign exchange rate of export income; Importers will bear the risk of rising exchange rate to pay for imports.
2. The simple form of indexation is to preserve the value through the index of a basket of currencies.
3. If the exchange rate of the expected pricing and settlement currency tends to decline, then the exporter or creditor should try to collect foreign exchange in advance to avoid the loss of depreciation of accounts receivable.
4. The transaction risk caused by the change of currency exchange rate directly affects the short-term cash flow of enterprises in local currency.
5. In international lending, borrowing, using and returning foreign exchange are not unified, and there is a risk that the exchange rate of using and returning foreign exchange will rise.
6. Multinational companies should summarize the financial statements of the whole company every year, requiring subsidiaries to convert the amount of each item in the financial statements prepared in foreign currency into the monetary unit of the country where the parent company is located, which creates accounting risks.
7. Economic risk comes not from accounting, but from economic analysis.