The Trade Relationship The Trade Dilemma

The Trade Relationship

The Trade Dilemma

Key Documents

Letter of Credit (L/C)

Letter of Credit (L/C)

Draft

Draft

Draft

Banker’s Acceptances

Bill of Lading

Bill of Lading

Government Programs to Help Finance Exports

Government Programs to Help Finance Exports

Trade Financing Alternatives

Forfaiting: Medium and Long Term Financing

International Parity Conditions

Prices and Exchange Rates

Prices and Exchange Rates

Purchasing Power Parity & The Law of One Price

Relative Purchasing Power Parity

Relative Purchasing Power Parity (PPP)

Relative Purchasing Power Parity

Exchange Rate Indices: Real and Nominal

Exchange Rate Indices: Real and Nominal

Exchange Rate Indices: Real and Nominal

Exchange Rate Pass-Through

Exchange Rate Pass-Through

Exchange Rate Pass-Through

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Interest Rates and Exchange Rates

Currency Yield Curves and the Forward Premium

Interest Rates and Exchange Rates

Interest Rate Parity (IRP)

Interest Rate Parity (IRP)

Covered Interest Arbitrage (CIA)

Covered Interest Arbitrage (CIA)

Covered Interest Arbitrage (CIA)

Covered Interest Arbitrage (CIA)

UIA: The Yen Carry Trade

Interest Rate Parity (IRP) and Equilibrium

Forward Rates as an Unbiased Predictor

Forward Rate as an Unbiased Predictor

Prices, Interest and Exchange Rates in Equilibrium

International Parity Conditions in Equilibrium

Foreign Exchange Markets

Geographic Extent of the Market

Geographic Extent of the Market

Functions of the FOREX Market

Market Participants

Bank and Non-bank Dealers

Individuals and Firms

Speculators and Arbitrageurs

Central Banks and Treasuries

Continuous Linked Settlement

Foreign Exchange Settlement in Europe

Transactions in the Interbank Market

Spot Transactions

Outright Forward Transactions

Swap Transactions

Swap Transactions

Swap Transactions

Size of the FOREX Market

Size of the FOREX Market

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Bid, Ask, and Mid-Point Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Exchange Rates: New York Closing Snapshot

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rate Determining/Forecasting

Foreign Exchange Rate Determining/Forecasting

Purchasing Power Parity Approach

Balance of Payments (Flows) Approach

Monetary Approaches

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Currency Market Intervention

Currency Market Intervention

Forecasting in Practice

Exchange Rate Forecasting Methods

Forecasting in Practice

Forecasting in Practice