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MGC2120 (20)
Chapter 10

MGC2120 Chapter Notes - Chapter 10: Technical Analysis, Fundamental Analysis, Nominal Interest Rate


Department
Management
Course Code
MGC2120
Professor
Dr Lakmal Abeysekera
Chapter
10

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International*Business*–*Chapter*10*–*The*Foreign*Exchange*Market*
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The$functions$of$the$Foreign$Exchange$Market$
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Currency$Conversion$
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4$,#85(C/(%'2">2$8(="##"7%'&(%'("'$(*3##$'*4(7+$#$(%'/$#$8/(#,/$8(,#$(>"7?(
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Insuring$against$foreign$exchange$risk$
Spot*exchange*rates(0(%8(/+$(#,/$(,/(7+%*+(,(1"#$%&'($)*+,'&$(9$,>$#(*"'2$#/8("'$(
*3##$'*4(%'/"(,'"/+$#(*3##$'*4("'(,(<,#/%*3>,#(9,45(C/(%8("1/$'("'(,(-%'3/$:=4:
-%'3/$(=,8%85(F,>3$("1(,(*3##$'*4(%8(9$/$#-%'$9(=4(/+$(%'/$#,*/%"'(=$/7$$'(/+$(G(
,'9(H("1(/+,/(*3##$'*4(#$>,/%2$(/"(H(,'9(G("1("/+$#(*3##$'*%$85((
Forward*Exchange*rate(0("**3#8(7+$'(/7"(<,#/%$8(,&#$$(/"($)*+,'&$(*3##$'*4(,'9(
$)$*3/$(/+$(9$,>(,/(8"-$(8<$*%1%*(9,/$(%'(/+$(13/3#$5(C/(&"2$#'8(13/3#$(/#,'8,*/%"'85((
Currency*Swaps(0(%8(/+$(8%-3>/,'$"38(<3#*+,8$(,'9(8,>$("1(,(&%2$'(,-"3'/("1(
1"#$%&'($)*+,'&$(1"#(/7"(9%11$#$'/(2,>3$(9,/$85(C/(%8(/#,'8,*/$9(=$/7$$'(
%'/$#',/%"',>(=38%'$88$8(,'9(/+$%#(=,'.8?($/*5((
The$nature$of$the$Foreign$Exchange$Market$
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: @7"(1$,/3#$8("1(/+$(-,#.$/I(JK(-,#.$/('$2$#(8>$$<8(LK(/+$(%'/$&#,/%"'("1(/+$(
2,#%"38(/#,9%'&(*$'/$#85(M'"/+$#(1$,/3#$(%8(/+$(%-<"#/,'/(#">$(<>,4$9(=4(/+$(
N5H(9">>,#O(,'9(9">>,#(%8(*"'8%9$#$9(,8(/+$(2$+%*>$(1"#(*3##$'*45((
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