Лекции по английскому языку для изучающих банковское и финансовое дело. Лекции по английскому языку для изучающих банковское и финансов. Составитель Н. А. Самуэльян
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HI Say ivhal is true and what is false. Correct the false sentences:
5. If Ihe market rate changes, dealers all over the world must be notified at once, b'. Spot rales of the mosl important currencies are revealed while forward rates are kept secret. iv у Answer the following questions: \
?). VVhal are banking aclivilies in foreign exchange dealings aimed al?
V' Show the relationship between pairs of the. following sentences by using a pronoun instead of a noun phrase which is repealed in the second sentence. Ex. The banks arc the natural intermediary between foreign exchange supply and demand. The banks enable their commercial or financial customers to convert assets hold in one currency inlo funds of another currency. The banks are the natural intermediary between foreign exchange supply and demand. They enable their commercial or financial customers lo convert assels held in one currency inlo funds of another. 104 105 1. Banking activities in the foreign exchange field tend to establish a uniform price range for a particular centres of the world. A uniform price range for any currency is achieved by means of arbitrage. 2. Only the big banks have a foreign exchange department with qualified dealers. Local banks do not usually employ qualified foreign exchange dealers. 3. A foreign exchange dealer acquires his professional skill largely through experience. A foreign exchange dealer works in close cooperation with other dealers. 4. When large transactions are completed the rates may change. VI Find the nouns which are qualified in the text by the phrase foreign exchange. Write them down. VII Combine the words listed below into meaningful two or three word expressions as possible. Some are used in the text (e.g.: forward market operation): forward operation spot market price system monetary . range transaction money rate
\ VIII Complete the following sentences:
106 107 Unit Eleven The Global Money Market Active Vocabulary balance of payments conversion value devalue, devaluate exchange rale explode (v) fix (v) float a currency (v) fluctuation outstanding parity profit margin rate spread revert to (v)
The Global Money Market Foreign exchange trading in Britain is centered wholly in London. The London foreign exchange market is a telephonic market consisting of 3 groups: authorized banks, 11 foreign exchange brokers and the Bank of England. British opera-lions arc lo some degree over-seen and controlled by the Bank of England, which limits outstanding positions and calls regular returns. Sterling is thereby protected against unde sirable speculations. This control has never prevented the involvement in world money operations necessary to strengthen the commercial base, and in fact it has provided protection against the vicious losses reported by some banks overseas during the past few/years. " Continuous eontacl between dealers in banks in many cities around the world is, in essence, the international market. They fix the inlernational conversion value of one currency against another and conflicting opinions are swiftly ironed out by the movement of funds. At any one moment of lime, the value of sterling against the American dollar is the same, whelher yon deal in London, Germany, Tokyo or San Francisco. The major conlrolling factors that affect exchange rates are speculation, interest rates and the balance of payments. In the past, speculalion against the dollar in favour of other currencies has led to the sale of dbllars and the consequent purchase of other currencies. Interest rates dictate the flow of money from one foreign centre to another as money seeks higher yields and Ihe conditions in local money markets plus window dressing operations at Ihe ends of mqnlhs, quarters and the year, react on money flows. So the impact.of a balance of payments surplus or deficit is quite apparent. 11 follows lhal Ihe currency of a country with a constant surplus will always be in demand. But other things quite apart from financial factors affect the foreign exchange market. Political events can move the market quite significantly. At one point exchange rates were controlled and moni-lored by the central banks under the Brellon Woods Agree-menl. This affected member countries of Ihe International Monetary Fund, which meant simply that all such countries would have a parity for their currency against the American dollar, itself lied to gold, and Iheir currency would be pro- 108 109 tected against the dollar to a maximum spread of 3/4 per cent either side of this parity. All comme'rcial companies working on a wider commercial profit margin could rely on the rate movement staying within agreed boundaries. I Using the words in brackets as a guide, explain the mean- \ ing of the following terms and phrases:
10. spread (to differ, put and call price, in which, an option) II Choose the word or phrase in brackets that would best substitute for the word or phrase in bold print in the following sentences: 1. The Bank of England limits outstanding positions at the London Foreign Exchange, (unpaid, easily noticed, well-known) 2. This control has never prevented the involvement in world money operations. (support, participation, spontaneity) 3. They fix the international conversion value of one cur rency against another. (put in order, justify, settle) 4. The factors that affect exchange rates mostly are specula- tion, interest rates and the balance of payments, (cause a change of, increase, decrease) 5. The Bank of England will promote a protection to hold the pound within the agreed rate spread. (keep a promise, announce, give support to) 6. British export proceeds were invariably received in ster ling. (debts, earnings, credits) (usually, rarely, frequently) 7. The devaluation of sterling accentuated the switch away from the pound. V (selling, buying, a move-from) 8. After sterling had been devalued, rates of exchange were relatively stable. (changeable, unchangeable, flexible) 9. During that period the pound rose against the dollar. (its value increased, stayed at the same level, fell) 10. The EEC is bent on removing fluctuations between their own currencies. (opposed to, indifferent to, determined to) III Say what is true and what is false. Correct the false sentences: 1. British operations at foreign exchange markets are free of any control. 770 HI
if you deal in London.
markets. IV Vocabulary. Opposite». Find pairs ofopposites in the following lists:
h) local money market i) demand
Collocation. Find the nouns which are qualified in the textЪy these adjectives and write one noun to each adjec tives continuous regular constant telephonic central true financial undesirable floating maximum VI operation point profit rate spread trading value world Combine the words listed below into meaningful two or three word expressions: t broker bank central commercial conversion country demand exchange export foreign interest intervention international local London margin market member money movement VII Using information from the text, write a short summary. i VIII / Demonstrate the meaning of each of the following expressions in sentences of your own:
10. the pound rose against the dollar from ..... up lo ..... 112 113 Unit Twelve \, Covering Clients ih an Exchange Contract IX In the sentences of this test every seventh word has been left out. Write in the word that Jits best: The International Monetary Fund was set by the Bretton Woods Agreement of The Fund was established to encourage cooperation in the monetary field and .'.... removal of foreign exchange restrictions, to exchange rates and to facilitate a payments system between mem ber countries. Under IMF's articles of agreement, mem ber countries required to observe an exchange rate in which should be confined to per cent of its par value member was required to consult with IMF before devaluing or revaluing its Members in deficit were obliged by terms of the agreement to consult the IMF on the procedures being to improve their balance of payments was agreed that it was essential hold discussions to consider the reform the international monetary system over long term. Active Vocabulary: be entitled to (v) capital goods commitment contractual cover (v) enter into a contract (v) entrepreneur exchange control firm forward exchange cover liquidate (v) option penalty playground rule (v) rule out (v) ruling thin market undervalue (v) whereby
— покрывать, обеспечивать, страховать
114 775 Covering Clients in an Exchange Contract The Euro-market now has become an entrepreneurial playground. Weak currencies have been borrowed by speculators, then liquidated through the exchange markets for a strong currency on a scale that has inevitably caused a dramatic downturn in the rates. For instance, sterling sold against an undervalued dollar created a pressure on the London market. The dealers were unable, by exchange control ruling, to hold the resultant shortage of dollars. They were then driven to repurchase them on a thin market. Such an accumulation of pressure through a number of London banks led to a double counting of turnover, which in turn accelerated the rate movement against the pound. So, in a floating exchange system, the quoted rates do not necessarily relied economic values. This is where the speculator steps in. The most important defence against speculation is the Forward Exchange Contract — a legally binding contract between the bank and its customer. The agreement is that one currency will be exchanged for another at some future date the exchange rate l>eing agreed at the time of the contract. Once a contract is entered into, it does not mailer how much the rale of exchange varies between Ihe lime of enlcring Ihe contract and its maturity. The customer has fixed the rale. A forward exchange conlracl may be for a fixed dale or within oplion to deliver or take delivery wilhin an agreed period. Unlike a slock exchange oplion, where Ihe facilily to deal or not at the price any lime during the period exists, the option period of a forward exchange conlracl-concerns only Ihe liming of Ihe delivery for the exchange of currencies, Ihe cus-lomer having already deal I al a fixed rale. Forward exchange conlracls are subject to relalively uncomplicated exchange control regulations. The first and most important requirement is lhal a forward exchange conlracl can only be entered into when there is a firm commercial contractual commitment expressed and payable (or rcceiv- able) in a foreign currency. This requirement therefore rules out any exchange or gold clauses which may be incorporated into a commercial conlracl whereby slerling is to he paid away at some future date, the amount of sterling to be paid out depending upon the rale of exchange ruling on thai day. For example, a customer may be importing from Germany and has agreed that he will pay in sterling, b*ut that the actual; amount of slerling to be paid will be dependent upon Ihe rale ruling for Deulschemarks against slerling on Ihe dale of payment. No forward exchange conlracl may he entered into for this type of transaction and there is no way in which the banks can protect their customers against fluctuaclions in Ihe rate of exchange. Forward exchange cover must be in the currency of the commercial conlracl, i.e. if Ihe payment is to be in dollars the customer is not permitted to purchase a stronger currency with a view to converting at a profit into dollars on maturity of the conlract. Let us look al one or two praclical examples. A customer is importing machinery from West (Germany. He signs a conlracl lhat he will receive two machines per month, delivery starling in six monlh lime and finishing in one year's lime. He is quile entitled therefore to enler into a forward contract whereby he buys forward Deulschemarks for Ihesc machines for the various periods he requires, namely from six months up to twelve months. In addition, if he so wished he can go further as he is allowed by Exchange Control Regulations up to six months after the dale of importation.'All he has to do is to produce to his bank documentary evidence lhat he is importing these goods. In other words thai Ihere is a firm commercial conlracl; that the amount to be paid out is expressed in Deutschemarks and the bank will then provide him with the forward cover. Another customer may be exporting capital goods. He enters inlo his conlracl whereby he is going to export goods and will receive x amount of American dollars. The goods 116 117 will not be exported perhaps for another twelve months, and he is giving credit to his buyer for a further six months. Therefore he may arrange now to sell to his bank dollars delivery eighteen months forward. It is important to note that whether the customer is buying or selling a foreign currency in the forward market, there must be some documentary evidence that all foreign currency is to be paid or received. There are very heavy penalties for anyone who tries to speculate. Choose the word or phrase in brackets that would best substitute for the word or phrase in bold print in the following sentences.
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