Banks and Foreign Exchange Market

The banks are the natural intermediary between foreign exchange supply and demand. The main task of a bank's foreign exchange department is to enable its commercial or financial customers to convert assets held in one currency into funds of another currency. This conversion can take the form of a spot transaction or a forward operation. Banking activities in the foreign exchange field tend inevitably to establish a uniform price range for a particular currency throughout the financial centers of the world. If at a given moment the market rate in one centre deviates too far from the average, a balance will soon be restored by «arbitrage», which is the process of taking advantage of price differences in different places. It can be seen that foreign exchange business acts as a very important regulator in a free monetary system.

Only the big banks and a number of local banks specializing in this kind of business have a foreign exchange department with qualified dealers. Banks which merely carry out their customers' instructions and do not business on their own ac-count do not really require the services of a foreign exchange expert. For these it will be sufficient to have to someone with a general knowledge of the subject because his role in practice will be that of an intermediary between the customer and a bank professionally in the market.

A foreign exchange dealer acquires his professional skill largely through experience. Here we should point out how important close operation is among a team of dealers. The group can work together smoothly only if each member is able to shed his individuality. We must not forget that, almost incessantly, all the dealers are doing business simultaneously on different telephones and when large transactions are completed the rates may change, whereupon the other dealers must be brought up-to-date immediately. It is essential for a dealer to have the knack of doing two things at once so that he can do business on the telephone and at the same time take note of the new prices announced by his colleagues.

Professional foreign exchange dealing requires advanced technical equipment. Business is done by telephone (with many direct lines to important names) and teleprinter depending on distance and convenience. Spot and forward rates of the most important currencies and money market rates are displayed on a big rate board, remote-controlled by the chief dealers. Electronic data processing equipment is employed to keep track instantly of the exchange positions and for the administrative handling of the business done. Cross rates are figured out with the help of electronic table calculators.

Вариант II

I. Перепишите и письменно переведите предложения на русский язык. Подчеркните в каждом из них глагол-сказуемое и определите его видо-временную форму и залог.

1. The accounts department considered the conditions of payment yesterday.

2. I have never borrowed money from anyone.

3. Employees need to feel that you are sharing what they are trying to achieve.

4. As you requested we are enclosing a copy of our latest price list of services.

5. The $ 50 will be discounted from the purchase.

6. Cash isn't allowed for foreign trade in this country.

7. The marketing program was designed to produce what the company could sell.

II. Перепишите и письменно переведите предложения на русский язык. Подчеркните Participle I, II и укажите, является ли оно определением, обстоятельством или составной частью глагола-сказуемого.

1. Dealers have displayed our brightly coloured range of goods.

2. All patterns are selling well in this region.

3. Uninsurable risks include losses resulting from price changes.

4. All payments were provided by the agreement including payments of the interest.

5. The weight and measure of goods will be checked during loading.

III. Перепишите и письменно переведите предложения на русский язык. В каждом из них подчеркните модальный глагол или его эквивалент.

1. The issuing bank must ask its correspondent bank to advise and confirm the credit.

2. You could pay your transfer in US funds.

3. The Board of Directors is to be responsible for looking after the financial interests of the company.

4. The borrower had to pay the damage which resulted from his negligence.

5. Their efforts can protect the customers from losses.

6. The legislation is to work out the freight rates and passenger fares as soon as possible.

7. The monopoly might quote the prices for oil.

IV. Прочитайте и письменно переведите текст.