A borrowing/lending medium for members of the Group of Ten. Members of the lending country deposit funds into the International Monetary Fund (IMF), which are made available to be withdrawn by the borrowing member in need. One of the advantages of this is that each country deals in their own currency, leaving all conversions to the IMF. |||The Group of Ten is comprised of Japan, France, Germany, Sweden, The United Kingdom, Japan, Italy, Belgium, the Netherlands, the United States and Canada. Switzerland is the most recent member. They meet yearly to discuss political, financial and economic situations.
The abbreviation for the British pound and U.S. dollar (GBP/USD) currency pair or cross. The currency pair tells the reader how many U.S. dollars (the quote currency) are needed to purchase one British pound (the base currency).Trading the GBP/USD currency pair is also known as trading the "Cable". |||The value of the GBP/USD pair is quoted as 1 British pound per X U.S. dollars. For example, if the pair is trading at 1.50 it means that it takes 1.5 U.S. dollar to buy 1 British pound.The GBP/USD is affected by factors that influence the value of the British pound and/or the U.S. dollar in relation to each other and other currencies. For this reason, the interest rate differential between the Bank of England (BoE) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the GBP/USD cross could decline, due to a strengthening of the U.S. dollar when compared to the British pound. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EURO/USD currency pairs. This is due to the positive correlation of the euro, Swiss franc and the British pound.
The currency being exchanged in a currency carry trade. A funding currency typically has a low interest rate. Investors borrow the funding currency and take short positions in currencies with higher interest rates. |||The Japanese yen has historically been popular as a funding currency among forex traders because of its low interest rate. For example, a trader will borrow Japanese yen and purchase a currency with a higher interest rate, such as the Swiss franc.
Monies that can be borrowed at low interest rates, making them ideal to bankroll purchases of higher yielding assets including stocks, other currencies, bonds and commodities. Speculators earn the spread or carry between the funding currency and the higher-yielding asset. Apart from the risk of a price decline in the funded asset, the biggest risk in a carry trade is that of a steep appreciation in the funding currency if it is not the speculator's home currency. |||The Japanese yen was among the most favored funding currencies in the first decade of the 2000s, due to the near-zero interest rates in Japan for most of this period. By early 2007, the yen had been used to fund an estimated US$1 trillion in carry trades. The yen carry trade unraveled spectacularly in 2008 as global financial markets crashed, as a result of which the yen surged against most major currencies.
An over-the-counter contract between parties that determines the rate of interest, or the currency exchange rate, to be paid or received on an obligation beginning at a future start date. The contract will determine the rates to be used along with the termination date and notional value. On this type of agreement, it is only the differential that is paid on the notional amount of the contract. Also known as a "future rate agreement". |||Typically, for agreements dealing with interest rates, the parties to the contract will exchange a fixed rate for a variable one. The party paying the fixed rate is usually referred to as the borrower, while the party receiving the fixed rate is referred to as the lender.For a basic example, assume Company A enters into an FRA with Company B in which Company A will receive a fixed rate of 5% for one year on a principal of $1 million in three years. In return, Company B will receive the one-year LIBOR rate, determined in three years' time, on the principal amount. The agreement will be settled in cash in three years. If, after three years' time, the LIBOR is at 5.5%, the settlement to the agreement will require that Company A pay Company B. This is because the LIBOR is higher than the fixed rate. Mathematically, $1 million at 5% generates $50,000 of interest for Company A while $1 million at 5.5% generates $55,000 in interest for Company B. Ignoring present values, the net difference between the two amounts is $5,000, which is paid to Company B.
A term used by British labor ministers during the 1964 Sterling Crisis to refer to Swiss banks. |||British labor ministers were convinced that the foreign exchange speculation activities of Swiss banks were causing the devaluation of the Sterling. Just like the gnomes of legends, who dwell underground counting their riches, Swiss bankers were known for their extremely secretive policies.
The currency abbreviation for the Guinea franc, the national currency of Guinea. The GNF is actually the second franc for the country; the first was issued in 1959 and replaced the previously used CFA franc. That franc was replaced by the Guinean syli, which was used in the country from 1971–1985. The second Guinean franc replaced the syli in 1985. |||Fourteen West African countries still use the CFA franc; together they make up the African Financial Community. Twelve of the 14 are former French colonies. The Republic of Guinea was formerly known as French Guinea; today it is often referred to as Guinea-Conakry (the name of the capital city) to distinguish it from its neighboring country Guinea-Bissau.
The ISO 4217 abbreviation for the Gambian dalasi, the official currency of the West African country of Gambia. The Gambian dalasi (GMD) was introduced in 1971 to replace the former national currency - the Gambian pound. The country gained independence from its former British ruler (which brought its currency along with its rule) in 1965. |||The symbol for the currency is "D." Coins are minted in 1, 5, 10, 25 and 50 "bututs" and 1 dalasi denominations. Banknotes are printed in 5, 10, 25, 50 and 100 dalasis denominations. The currency market, also known as the foreign exchange market, is the largest financial market in the world.
登录
工商服务
危机公关
金融律师
app开发
财税服务
金融牌照
网站建设
知识产权
企业征信
审计评估