Section А

Date: 2015-10-07; view: 552.

· Listen to the tape, practice the pronunciation of the following words and word combinations and quote the sentences in which they are used in the unit.

to be accounted in sterling

dollar Deutschmark market

to firm up (about the rate)

to widen the interest differential

to lend out\to borrow dollars

to square the account

to deal forward

a tom\next dollar mark

value date

to adjust the price

outright

the tom\next swap

to cover the foreign exchange exposure

A1

· Listen to the conversation and answer the questions.

1. What are the basic principles of foreign exchange dealing as explained by Alan King?

2. Is there anything that is really moving the market?

3. Did Alan King dwell upon the basic idea of spot dealing?

4. The spot market is dealing two working days forward, isn't it? Give an example of it.

5. What definitions are given by Alan King to the main forms in forward dealing such as a tom\next, a spot\next and spot dollar mark outright tomorrow?

6. What is the difference between swap and outright?

A2

· Look through the following list of currency codes. Then write the appropriate currency code next to the country to which it relates.

A3

· Listen to Alan King explain some of the basic principles of foreign exchange dealing and tick (ü) those items which he talks about

• Currency codes.

• Some terms used in foreign exchange dealing.

• Some basic principles of foreign exchange dealing.

• A big deal he did last week.

• FOREX market transactions.

A4

· Listen to the conversation again. As you do so, note down whether the following statements are true or false.

1. Most of Alan's dealings are based on sterling.

2. The previous day, dollar rates had risen by between /-§th to /-· th of a per cent.

3. A tom/next means from tomorrow to next week.

4. When someone asks ‘What is your spot dollar mark outright tomorrow?' Alan quotes them a spot rate.

5. A swap involves borrowing one currency and lending another.

6. An outright is connected to a corresponding spot transaction.

7. This conversation took place in the month of October.

A5

· Listen to Alan again and write down the words that he actually uses in place of the words printed in italics.

1. We're accounted in British pounds ...

2. So, for instance, your prices for funds which will be exchanged two working days later are dollar Deutschmark ...

3. I mean, for instance, yesterday the dollar rates increased slightly.

4. So people buy dollars because the difference in interest rates between dollars and Deutschmarks is increasing.

5. You're short of Deutschmarks that day and you have to buy, borrow those for one day ...

6. That is the basis of making a result where the income is higher than the costs.

7. Well, to make totals equal, to balance the account for that day.

8. ... and find that on the 17th that I am in a position where I have sold more Deutschmarks than I have bought, and bought more dollars than I have sold.

9. Then you have spot a week, a period of two weeks beginning two working days from now.

10. We also have deals where someone buys one currency and sells another on any particular day.

11. It's just that you're stating the price that you will charge for a spot rate …

12. ... depending what the price is for the torn/next exchange of one currency for another, for a certain period of time.

13. ... so that the relationship between the two currencies fixes, decides the forward pricing.

14. ... so they cover their foreign exchange risk or possibility of loss by buying Deutschmarks ...

A6

· It is sometimes difficult to hear words which are unstressed in spoken English. Look through the text below, which is taken from the first part of the conversation, and say what you think the missing unstressed words are. Then listen again to this part of the conversation. As you do so, write in the missing words.

We…………… accounted ………………. sterling, but generally all dealings ………………. based …………… the dollar. So, ………………. instance, ……………….. spot prices ……………… dollar Deutschmark, OK? ............... the big market really, dollar Deutschmark. And ………….. the movement in ……………. dollar which is really moving ……………… market. I mean, ……………. instance, yesterday, the dollar rates firmed up …………. little. They went up about ……………. sixteenth to ……………….. eighth of ……………… per cent. So people buy dollars ………………….. the interest differential between dollars ………………. Deutschmarks is widening. So………………. mean, if you buy dollars, OK, you, you ……………. lend them out………………..next day ……………… say eleven and ……………… half percent ………………. short …………… Deutschmarks that day, and you have ………………. purchase, borrow those …………… one day, and that's about five …………………. half per cent. So ……………. talking about six per cent difference. The basic idea ………………. spot dealing is to buy dollars low ………………. sell high. That's the basis ………………….. making …………… profit.

A7

· Act as an interpreter

Интервьюер: Почему Вам могут понадобиться немецкие марки на какую-то определенную дату? Вы сказали, что у Вас будет короткая позиция в марках и следовательно придется их занимать

Alan: Well to square the account for that day. We're dealing ahead all the time. The spot market is dealing two working days forward. So, for instance, if I bought dollars against Deutschmarks, I would come in tomorrow and find that on the seventeenth I'm short in Deutschmarks and long in dollars. So then I would go into the market and say 'What's your torn/next dollar mark?'

Интервьюер: Что это означает?

Alan: Tom/next dollar mark. They're dealing terms, OK?

Интервьюер: Да, понимаю.

Alan: We have spot which is normal buying and selling of currencies. Then we have a tom/next. Now a tom/next simply means tomorrow to the next day. Then we have spot/next which is your two days' forward dealing value date to the next day.

Интервьюер: Спасибо за разъяснение

Alan: We also have outright. So someone can ask 'What is your spot dollar mark outright tomorrow?' It's just that you're quoting a spot rate but it's from tomorrow, and you adjust the price, depending what the price is for the torn/next swap. It's always relative to the two day