International Economics Chapter 14 Foreign Exchange Markets and Exchange Rates.pptx

International Economics Chapter 14 Foreign Exchange Markets and Exchange Rates。14.1 Introduction；14.2 Functions of the Foreign Exchange Markets；14.3 Foreign Exchange Rates；14.4 Sport and Forward Rates, and Foreign Currency Swaps, Futures and Options；14.5 Foreign Exchange Risks, Hedging, and Speculation；14.6 Interest Arbitrage and Efficiency of Foreign Exchange Markets；14.7 Eurocurrency Markets Chapter Summary Exercises Internet Materials。Case 1 The U.S. Dollar as the Major Vehicle CurrencyToday, U.S. Dollar is the dominant vehicle currency, serving as a unit of account, medium of exchange, and store of value not only for domestic transactions but also for private and official international transactions.45.2% of foreign exchange trading was in dollars, 18.8% in euros, 11.4% in Japanese yen, and smaller percentage in other countries.50.3% of international bank loans, 48.4% of international bond offerings, and 47.6% of international trade invoicing were denominated in U.S. Dollars.68.3% of foreign exchange reserves were held in U.S. Dollars compared with the smaller euros and other currencies。