lesson-17International-Monetary-System-and-Exchange-Rate-4PPT优秀课件

1、1Lesson 17International Monetary System and Exchange Rate2Business Knowledge:n(1)The international monetary systemnA.Sterling-based gold standardnB.Dollar-based gold standardnC.The floating systemn(2)Exchange ratenA.Fixed exchange ratenB.Flexible exchange ratenC.Major factors influencing exchange ra

2、tena.International balance of paymentnb.Inflationnc.Interest rate3nD.Common measures for intervention in exchange ratena.Buying or selling foreign currencynb.Raising or lowering discount ratenc.Foreign exchange controlnE.The pros and cons of the two different kinds of exchange ratenF.Direct quote an

3、d indirect quotenG.Buying price, selling price medial price4nThe earliest international monetary system was known as the gold standard under which countries pledged (promised) to change their paper currencies into gold when requested to do so. The gold standard created a fixed exchange rate system a

4、s each country pegged (fix挂钩挂钩) the value of its currency to gold to establish its par value (平价平价/票面价值票面价值) (face value). For most of the 19th century till the end of the First World War, major trading countries followed this system and the British Pound was the most important currency in internati

5、onal business as a result of the economic, political and military power of the United Kingdom, hence the term sterling-based gold standard. (pound sterling)5ngold standard 金本位制金本位制nA monetary system formerly used by many countries, under which the value of the standard unit of currency was by law ma

6、de equal to a fixed weight of gold of a stated fineness. Thus the rates of exchange between various gold-standard countries remained fixed.n以前许多国家采用的一种货币制度，按此制以前许多国家采用的一种货币制度，按此制定，货币的标准单位的价值根据法律规定，定，货币的标准单位的价值根据法律规定，相当于规定成色的固定分量的黄金。因此，相当于规定成色的固定分量的黄金。因此，各个金本位制国家之间的汇率保持固定不变。各个金本位制国家之间的汇率保持固定不变。6nPled

7、ge: promise solemnly and formally; give as a guaranteen 保证，许诺保证，许诺npledge oneself 宣誓；保证宣誓；保证 npledge of allegiance 效忠誓言效忠誓言ncash pledge 押金押金nHe would keep his pledge to the utmost of his power. n他将极力信守他的誓言。他将极力信守他的誓言。7nExchange rate汇率、兑换率汇率、兑换率:n It refers to the price at which one currency can be e

8、xchange for another currency.n一种货币兑换成另一种货币的价格一种货币兑换成另一种货币的价格8npeg 钉住，固定钉住，固定nkeep(a price,etc) at a set level or keep unchanged9npar vaule 平价平价nThe official exchange rate of the home currency against foreignh currencies. It is the rate of exchange at par, i.e. without either premium or discount, and

9、 lies somewhere between the buying rate and the selling rate current in the market.n本币对外币的官方汇率。这是按平价的汇本币对外币的官方汇率。这是按平价的汇率，即无升水也无贴水，平价汇率介于市率，即无升水也无贴水，平价汇率介于市场上的现行买入汇率与卖出汇率之间。场上的现行买入汇率与卖出汇率之间。10nThe pressure caused by the First World War on economy coupled with (together with连同连同) the impact of the Gr

10、eat Depression (大萧条大萧条) put an end to(结束结束)the fixed exchange rate system. The Bank of England was no longer able to redeem (赎回，兑换赎回，兑换) its paper currency for gold at par value (以面值以面值) (无力将其纸币以平价兑换成黄金无力将其纸币以平价兑换成黄金) and allowed its value to be determined by supply and demand (market). With Britain

11、 abandoning (放弃放弃)the gold standard, there appeared different areas in the world. Some countries pegged their currencies to the sterling(英镑英镑), some countries to the US dollar and some to the French Franc, forming the “sterling area”, “dollar area” and “franc area”. 11nRedeem: save from sins; restor

12、e the honor or worth of; to turn in (vouchers or coupons) and receive something in exchange; exchange or buy back for money; under threatnvt. 赎回；挽回；兑换；履行；补偿；恢复赎回；挽回；兑换；履行；补偿；恢复nShe is going to redeem her diamond ring. n她将赎回她的钻石戒指。她将赎回她的钻石戒指。nHe had no way to redeem his furniture out of pawn. n他无法赎回典

13、当的家具。他无法赎回典当的家具。12nThis period witnessed the degeneration(衰落衰落)of the international monetary system as some major countries vied(vie - compete)to (竞相竞相)devaluate their currencies to make their export goods more competitive.(竞争性贬值竞争性贬值) (这一时期，世界货币这一时期，世界货币体系不断恶化，各主要贸易国家竞相将其货币贬体系不断恶化，各主要贸易国家竞相将其货币贬值以提

14、高他们出口物品的竞争力值以提高他们出口物品的竞争力) The benefits brought about by their devaluation were, needless to say (不用说不用说), offset(抵消抵消)by what their competitors did. International trade contracted (shrink收缩收缩) and economic conflict finally led to the Second World War. 13nDegeneration: the process of declining from

15、a higher to a lower level of effective power or vitality or essential quality; the state of being degenerate in mental or moral qualitiesn退化；堕落；恶化退化；堕落；恶化nThe degeneration of sb.s charactern某人品质的堕落某人品质的堕落nThe degeneration of a political systemn政治制度的腐化政治制度的腐化nThis period witnessed the degeneration of

16、 the international monetary system.n这一时期，世界货币体系不断恶化。这一时期，世界货币体系不断恶化。14nOffset: compensate for or counterbalance; make up for; cause (printed matter) to transfer or smear onto another surfacen抵消；弥补抵消；弥补noffset printing 胶印，平版印刷；胶版印刷；平板印刷胶印，平版印刷；胶版印刷；平板印刷nfrequency offset 频率偏移；频率偏置频率偏移；频率偏置noffset pres

17、s 胶印机胶印机noffset paper 胶版纸；胶版印刷纸；平版机上浆纸胶版纸；胶版印刷纸；平版机上浆纸noffset print 胶版印刷胶版印刷n“By investing in it, we can count it as an offset,” she said. n她说：她说：“通过对其投资，我们可以把它视为一项补偿。通过对其投资，我们可以把它视为一项补偿。”15nContract: enter into a contractual arrangement; make smaller; become smaller or draw togethern收缩；感染；订约收缩；感染；订

18、约ncontract with 承包；与承包；与订有合约订有合约nlabor contract n. 劳工合同劳工合同ncontract management 合同管理合同管理nbreach of contract 违约；违反合同违约；违反合同nThey lost on the contract. n他们在合同上赔了钱。他们在合同上赔了钱。nMetals contract as they become cool.n金属冷却时就会收缩。金属冷却时就会收缩。nIn the Second World War, international trade contracted.n二战期间，世界贸易额不断缩

19、小。二战期间，世界贸易额不断缩小。16nTowards the end of the Second World War (1944) representatives of 44 countries gathered at Bretton Woods (布雷顿森林布雷顿森林) to renew(更新更新)the gold standard on a greatly modified basis(在修改较大的基础上在修改较大的基础上). One important fruit of the conference is the creation (establishment创立创立) of the

20、International Bank for Reconstruction and Development (IBRD)and the International Monetary Fund. (1944)17nThe Bretton Woods Conference established a US dollar based gold standard. Because of the dominating (主导性的主导性的) economic and political influence of the United States, the dollar replaced the ster

21、ling(英镑英镑)as the major vehicle(工具工具)for international settlement(国际结算国际结算). （由于美国由于美国在国际经济、政治中的统治性影响，美元替代英在国际经济、政治中的统治性影响，美元替代英镑成了国际结算中的主要工具。镑成了国际结算中的主要工具。）Though all the Bretton Woods participants(与会国与会国)agreed to peg their currencies to gold, only the United States pledged to redeem the dollar for

22、 gold at the request of the central bank of a foreign country. Under the new fixed exchange rate system, each participant promised to maintain the par value(面值面值)of its currency(与黄金的兑换与黄金的兑换价价), allowing a fluctuation of only one percent. 18nVehicle: a conveyance that transports people or objects; a

23、 medium for the expression or achievement of somethingn车辆；工具；交通工具；运载工具；传播媒介；媒介物车辆；工具；交通工具；运载工具；传播媒介；媒介物nmotor vehicle 汽车；机动车辆汽车；机动车辆nelectric vehicle 电动车辆电动车辆nvehicle maintenance 汽车维护，车辆保养汽车维护，车辆保养ncommercial vehicle 商用车辆商用车辆nlaunch vehicle 运载火箭运载火箭nThe red traffic light indicates that every person

24、and vehicle must stop. n红色信号灯表示人和车辆不能通行。红色信号灯表示人和车辆不能通行。nArt may be used as a vehicle for propaganda.n艺术可用作宣传工具。艺术可用作宣传工具。19nFluctuation: the quality of being unsteady and subject to changes; an instance of change; the rate or magnitude of changenn. 起伏，波动起伏，波动nIt turns out we have several readings w

25、ith a high fluctuation from their neighbors.n结果证明，我们有一些读数相对于其相邻点有大结果证明，我们有一些读数相对于其相邻点有大的波动。的波动。nEconomic fluctuations are booms and slumps when industrial activity rises and falls.n经济波动指工业活动上下变动的兴旺和衰退。经济波动指工业活动上下变动的兴旺和衰退。20nThe country concerned had to intervene(干干预预)if the market value （(有别于账面价值的有别

26、于账面价值的)市场价值，销售价格市场价值，销售价格）of its currency goes beyond the range(1%). Under special circumstances, a country was allowed to adjust the par value of its currency(与黄金的兑换价与黄金的兑换价). Thus the Bretton Woods system is said to be using an adjustable peg (可调整的固定汇率可调整的固定汇率). The new system was also called by s

27、ome people the “New Gold Standard System.” This relative stability in exchange rates facilitated(promoted促进促进) international business till the beginning of 1970s.21nUnder the Bretton Woods System, people would hold (持有持有) dollars so long as(如果如果)they trusted the convertibility(可兑换性可兑换性)of the dollar

28、 into gold. With the increase of foreign dollar holdings to finance(provide fund for)trade expansion(为贸易增长提供资金为贸易增长提供资金), the faith of dollar holders decreased in the ability of the United States to redeem the dollar for gold. (为为了给其贸易增长提供资金，外国人持有的美元了给其贸易增长提供资金，外国人持有的美元越来越多。同时，他们对美国政府把美元兑换越来越多。同时，他们

29、对美国政府把美元兑换成黄金的信心却越来越低。成黄金的信心却越来越低。)To reduce the demand for the dollar as a reserve currency(储储备货币备货币), the special drawing right(特别提款特别提款权权)was created (设立设立). 22nReserve currency 储备货币储备货币nIt refers to the currency which is held as part of their official reserves by the governments of other countri

30、es, because these governments have confidence in its value remaining high and in its usefulness in settling future international debts. The two main reserve currencies are the US dollar and the pound sterling.n它是由其他国家政府作为官方储备的一部分而持有它是由其他国家政府作为官方储备的一部分而持有的货币。因为这些政府相信这类货币的币值能维持的货币。因为这些政府相信这类货币的币值能维持在较

31、高水平，可以用来偿付未来的国际债务。两种在较高水平，可以用来偿付未来的国际债务。两种主要的货币是美元和英镑。主要的货币是美元和英镑。23nUsed to settle official transactions(结算官方交结算官方交易易)at the IMF, SDRs are sometimes called paper gold(纸黄金纸黄金). Despite the new liquidity(流动性流动性) injected by SDRs into the international monetary system, United States was still unable t

32、o meet the demands of foreign dollar holders for gold(把美元兑换成把美元兑换成黄金的需求黄金的需求). On August 15, 1971 the US Administration announced severing(sever: cut off)link between the dollar and gold, signifying (标志着标志着) the collapse of the Bretton Woods system. (marking the end to BWS)Since then, international

33、business has relied increasingly on the flexible exchange rate system. 24nMost major currencies (hard currencies)began to float (浮动浮动) in the foreign exchange market. Other currencies followed a fixed exchange rate by pegging(钉住钉住)themselves to a major currency such as the dollar, or the French Fran

34、c and float with it. From 1976 countries ceased to stipulate gold par value (金平价金平价) to their paper currencies，leaving the price of their respective(各自的各自的) currency to be decided by the interaction(相互作用相互作用)of supply and demand.25nInteraction: a mutual or reciprocal action; interactingn相互作用；交互作用相互作

35、用；交互作用ninteraction with 交往；与交往；与相互作用相互作用ninteraction design 交互设计；互动设计交互设计；互动设计nsocial interaction 社会互动社会互动nhuman-computer interaction 人机交互人机交互npositive interaction n. 正相互作用正相互作用nI have some chance for interaction with them sometimes.n有时我有跟他们交往的机会。有时我有跟他们交往的机会。26nFactors influencing the exchange rate

36、 include the following:n1.International balance of payment (BOP) (国际收支国际收支).nIt has a direct bearing(influence)on the supply and demand of foreign exchange. The value of ones own currency will go up(货货币升值币升值)with favorable balance of payment (国际收支顺差国际收支顺差) and drop with BOP deficit (国际收支逆差国际收支逆差). n

37、BOP deficit unfavorable BOPnBOP surplus favorable BOP27n2. Inflation. It is closely related to the real value of the currency and the competitiveness竞争力竞争力 of the commodity. When inflation intensifies(加剧加剧), the value of the currency will drop(其货币价值相对于外币将会下降其货币价值相对于外币将会下降)(贬贬值值)relative to foreign c

38、urrencies and vice versa.n3. Interest rate利率利率. Under specific conditions, high interest rate will attract short term international fund, increasing the exchange rate of ones own currency and vice versa. 28nvice versa: adv. with the order reversedn反之亦然反之亦然nYou hide nothing of yourself and can tell t

39、he other anything because you know they accept you just the way you are and vice versa. n你丝毫也不掩饰自己，能告诉对方任何事情你丝毫也不掩饰自己，能告诉对方任何事情，因为你知道对方接受的就是你现在的这个，因为你知道对方接受的就是你现在的这个样子，反之亦然。样子，反之亦然。n我们在背后议论他们，反过来，他们也在背我们在背后议论他们，反过来，他们也在背后议论我们。后议论我们。nWe gossip about them and vice versa.29nThe above factors may work a

40、lone or collectively (together). Sometimes their influences may offset each other. Generally speaking, however, international balance of payment is the most important factor in deciding the trend of exchange rate. In addition, foreign exchange policies, political events and speculation activities (投

41、机活动投机活动) may also have a role to play in the fluctuations of exchange rate.30nThe flexible exchange rate system has never been clean float (清洁浮动清洁浮动)or free float(自由浮动自由浮动). The central banks take various measures to intervene in the price of its currency. So the current practice is often called a m

42、anaged float管理浮动管理浮动 or dirty float(肮脏浮动肮脏浮动). The common measures taken for intervention are: 31nClean float 清洁浮动，自由浮动清洁浮动，自由浮动nClean float is also called a true free float. It refers to the float allowed to move freely. Probably the closest to this is in the U.S., where the Federal Reserve has int

43、ervened only rarely and has declare its action after the event.n清洁浮动又称完全自由浮动，指汇率完全自清洁浮动又称完全自由浮动，指汇率完全自由浮动。可能最接近自由浮动的是美国，美由浮动。可能最接近自由浮动的是美国，美联储很少干预，直到事发后才宣布其行动。联储很少干预，直到事发后才宣布其行动。32nDirty float 不自由浮动，有干预浮动或肮不自由浮动，有干预浮动或肮脏浮动脏浮动n it refers to more heavily managed float, indicating that countrys central

44、 bank intervenes regularly to influence the currencys level by buying or selling.n指严重管理的浮动，表明该国中央银行通指严重管理的浮动，表明该国中央银行通过买入或卖出进行干预从而影响其货币的过买入或卖出进行干预从而影响其货币的水平。水平。33n1. foreign exchange reserves: When the price of a foreign exchange goes too high, the central bank may increase its supply by selling it

45、out of its foreign exchange reserves. And in the opposite case, it can buy the currency in the market to increase its reserves.n2. the discount rate: When the price of a foreign exchange goes too high, the government may raise the discount rate to absorb foreign fund to increase foreign exchange inc

46、ome/earnings of the country and vice versa.34nDiscount 贴现贴现nA sum of money allowed for immediate payment of a sum due at a later daten允许为日后到期的款项立即兑现所支允许为日后到期的款项立即兑现所支付的一笔款项。付的一笔款项。35n3. foreign exchange control: In case of acute（剧烈的剧烈的） exchange rate fluctuation(波动波动), a government may have to resor

47、t to(诉诸于；使诉诸于；使用用) foreign exchange control or raise foreign loans(collect筹集外来资金筹集外来资金)to make up its balance of payment deficit(填补国际收支赤填补国际收支赤字字)and lower the demand for foreign exchange.nForeign exchange income/earningnForeign exchange reverse nForeign exchange controlnForeign exchange shortage36n

48、The two different exchange rate systems each has its own advantages. The fixed exchange rate system reduces the riskiness of international business and is also an important measure to curb (抑制抑制) inflation.However the system is vulnerable to (容易受容易受到伤害到伤害easy to be affected by) disorderly changes (无

49、无序变化序变化) in currency value. The most recent example is the Asian Financial Crisis of 19971998 when the fixed exchange rate adopted by some Southeast Asian countries like Thailand and Indonesia collapsed and dealt a heavy blow to (重创重创)the economy. 37nUnder the flexible exchange rate system fluctuati

50、ons of the exchange rate within a definite period of time will not immediately affect domestic money circulation （货币流通货币流通）and is helpful to the stability of the economy. Flexible exchange rate can also protect domestic currency from the impact of foreign idle fund（闲置资金）（游资、热钱（闲置资金）（游资、热钱hot money)a

51、nd helps to prevent the drain (流失流失) of foreign exchange reserve. But frequent wild swings (fluctuation)of the value of currencies will increase the riskiness of trade and affect international investment.38nIdle funds 游资游资nIdle funds are the money held in the form of cash or held in idle balances.n指

52、以现金形式持有或以闲置余额形式所指以现金形式持有或以闲置余额形式所持有的资金。持有的资金。39nExchange rates are published daily in two different ways. A direct exchange rate is the price of a foreign currency in terms of （根据）（根据）the home currency(用本币表示外币的价格用本币表示外币的价格). In a direct quote, an amount of foreign currency, usually one unit or one h

53、undred units is taken as the standard and the equivalent amount of home currency(等量本币等量本币)is marked after it. An indirect exchange rate is the price of home currency in terms of a foreign currency(用外币用外币表示本币的价格表示本币的价格). In an indirect quote one unit or one hundred units home currency is taken as the

54、 standard and the equivalent of foreign currency(等量外币等量外币)is given. 40nDirect quote / quotation（汇率）直（汇率）直接标价接标价: A direct exchange rate is the price of a foreign currency in terms of the home currency. n1美元美元=6.8元元 外币为基准外币为基准41nIndirect quote / quotation（汇率）间接（汇率）间接标价标价: nAn indirect exchange rate i

55、s the price of home currency in terms of a foreign currency.42nFor instance 100 USD/826.57RMB (or 826.57RMB/100USD) is direct exchange rate from the Chinese perspective and indirect exchange rate from the American perspective. The two different quotes are used in different countries or regions mainl

56、y as a tradition or for convenience. Most countries or regions including China use the direct quote, but the United States and Britain use the indirect quote.43nThere are three types of foreign exchange price. The buying rate refers to the rate by which a commercial bank buys a currency. The selling

57、 rate is the rate by which a bank sells a currency. The medial rate is the average of the two. It is used in transactions between the banks and is not applicable to common customers. The difference between the buying rate and the selling rate varies from 1 per mil (千分千分) to 5 per mil which constitut

58、es the profit of the bank. In the case of direct quote, the first figure after the fixed amount of foreign currency is the buying rate and the second figure is the selling rate. 44nBuying rate买入价买入价: nIt refers to the rate by which a commercial bank buys a currency.nSelling rate卖出价卖出价: nIt is the ra

59、te by which a bank sells a currency.nMedial rate中间价中间价 nIt is the average of the buying rate and the selling rate.45nAnd in the case of indirect quote the first figure after the fixed amount of home currency is the selling rate and the second figure is the buying rate.46Business Knowledgethe interna

60、tional monetary system: the kind of convertibility adopted by governments of the world for its currency, whether freely into gold as under the gold standard, or into paper of some kind, as under a paper standard.The gold standard: is the earliest international monetary system under which countries p