Kelompok 4 : Rahadian Assaf Muhammad Ramdhani Cornelia Aryanti Wahyu Murcahyati FOREIGN EXCHANGE Foreign exchange (Valuta asing) adalah sebuah komoditas yang terdiri dari mata uang yang diterbitkan oleh negara lain.
DEMAND FOR AND SUPPLY OF YEN THE MARKET FOR YEN FOREIGN-EXCHANGE RATES Direct exchange rate Indirect exchange rate
STRUKTUR DARI PASAR VALUTA ASING Pasar valuta asing terdiri dari pembeli dan penjual mata uang yang dikeluarkan oleh banyak negara.
PERAN BANK Membeli atau menjual mata uang yang utama
BANK FOREIGN EXCHANGE CLIENTS Commercial customers Speculators Arbitrageurs SPOT AND FORWARD MARKETS Spot Market: foreign exchange transactions that are consummated immediately Forward Market: foreign exchange transactions that are to occur sometime in the future
ARBITRAGE Arbitrage of Goods Arbitrage of Money
ARBITRAGE OF MONEY Two-point Covered-interest Three-point
THREE-POINT ARBITRAGE INTERNATIONAL CAPITAL MARKET Major International Banks International Bond Market Global Equity Markets Offshore Financial Centers MAJOR INTERNATIONAL BANKS Number Company Country 1 ING Group Netherlands 2 Fortis Belgium/Netherlands 3 Citigroup USA 4 Dexia Group Belgium 5 HSBC Holding UK 6 BNP Paribas France 7 Credit Agricole France 8 Deutsche Bank Netherlands 9 Bank of America Corp. USA 10 UBS Switzerland THE INTERNATIONAL BOND MARKET Major source of debt financing for: Worlds governments International organizations Larger firms Two types of bonds Foreign bonds Eurobonds
GLOBAL EQUITY MARKETS Start-up companies are no longer restricted to raising new equity only from domestic sources
OFFSHORE FINANCIAL CENTERS Focus on offering banking and other financial services to nonresident customers Locations Bahamas, Bahrain, the Cayman Islands, Bermuda, the Netherlands Antilles, Singapore, Luxembourg, Switzerland
FINANCIAL ISSUES IN INTERNATIONAL TRADE Which currency to use for the transaction When and how to check credit Which form of payment to use How to arrange financing
METHOD OF PAYMENT Payment in Advance Open Account Documentary Collection Letters of Credit Credit Cards Countertrade
FORMS OF DRAFTS USED WITH DOCUMENTARY COLLECTION Sight Draft Time Draft
ADVANTAGES/DISADVANTAGES OF DOCUMENTARY COLLECTION Advantages Reasonable fees Enforceable debt instrument Simple collections process Prompt payments Disadvantages Refusal of shipments Decline draft acceptance Potential for default
DOCUMENTATION FOR LETTERS OF CREDIT Export Licenses Certificates of Product Origin Inspection Certificates
TYPES OF LETTERS OF CREDIT Advised letter of credit Confirmed letter of credit Irrevocable letter of credit Revocable letter of credit
FORMS OF COUNTERTRADE Barter Counterpurchase Buy-back Offset purchase