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Money and credit - Ivanov V.М.

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Control questions

1. How did clearing banks expand their influence on international trade?

2. Definition of international credit.

3. The procedure for granting international credit.

4. The object and subjects of international credit.

5. Types of international credit.

6. Functions of the International Monetary Fund and the European Bank for Reconstruction and Development.

Tasks

1. The Ukrainian bank takes a loan from a British bank for the purchase of 20,000 Canadian dollars. The spot exchange rate is 1.8495-1.8705.

How much should I take a loan in pounds sterling, so that a British bank sells Canadian dollars?

2. On the account of "nostro" of the Ukrainian bank in the British is 14,500 pounds sterling. According to the correspondent agreement, in the event of a shortage of funds in the account, the Ukrainian bank receives an overdraft under 10% per annum.

A country

Currency

The course "spot"

One month "forward" course

Three-month "forward" course

USA

Dollar

1,5200-1,5210

0,32-0,27 cents of the premium

0.89-0.84 cents of discount

Canada

Dollar

1.8630-1.8640

0,30-0,20 cents of premium

0.90 - 0.80 cents

Awards

Switzerland

Franc

62.20 - 62.30

10-20 cents discount

45-55 cents a discount

Polscha

Zloty

12.01-12.02

4 1/4 -6 7/8 cents of discount

18 3/8 -19 3/4 cents of discount

Germany

Euro

3.06 1 / 2-3.07 1/2

2-1 3/4 cents of premium

5% -5 cents of the prize

On the basis of information on exchange rates in a British bank (see Table), make the necessary calculations:

• Buy $ 14,000 for a one-month forward contract;

• Buy $ 25,000 Canadian dollars at the spot rate;

• Buy 75,000 Swiss francs on a three-month forward contract;

• Sell 20,000 Polish zlotys on a three-month forward contract;

• sell 6000 euros on a one-month forward contract;

• determine the cost of the overdraft (if it occurred);

• determine the cost of completing all operations for customers of the Ukrainian bank, if the level of profitability for currency transactions should be 5%.


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