Vocabulary list:

1. foreign exchange markets — валютныерынки

2. foreignbillofexchange — переводной вексель во внешнеторговых сделках

3. ...ofinternationalstanding — ...международного значения (положения)

4. totradeat (a) discount — торговать ниже номинальной цены

5. rate of interest (interest rate) — процентнаяставка

6. the exchange risk — валютный риск

7. the market’s expectation — ожидание рынка

8. appreciation—depreciation — повышение—понижение

9. gold and foreign-exchange reserves — золотовалютныерезервы

10. specialdrawingrights (SDR) — специальные права заимствования

11. reserve assets — резервныеактивыf

Notes:

1. to permit the export transaction to occur — позволитьсовершитьсяэкспортнойсделке

2. to facilitate — содействовать, способствовать

3. toeffectthetransfer — осуществить (совершить) перевод

4. internationaltradeflows — международные торговые потоки

5. the market... is dominated by financial institutions — нарынкедоминируютфинансовыеинституты

6. the divergences between the exchange rates — разницымеждукурсамивалют

7. averagedailyturnover — средний дневной оборот

8. “spot” currency market — рынокналичнойвалюты

9. “spot” transaction is a transaction with immediate delivery of currency — спот-сделка (операция) — сделкаснемедленнойпоставкойвалюты

10. “forward” market— рынок по сделкам на срок

11. government intervention — правительственная интервенция

12. ...denominated in reserve currencies — ...деноминированныеврезервныхвалютах

Ex 1. Work with a partner and discuss these comprehension questions on Text 1.

1. What feature distinguishes international and domestic payments?

2. What is the condition of an export-import transaction among the countries with different currencies?

3. In what way does the exchange (selling and buying) of currencies occur?

4. What is the function of foreign exchange markets? Which foreign exchange markets do you know?

5. What function does the foreign bill of exchange perform?

6. What organizations dominate in modem foreign exchange markets?

7. In what way do currency dealers gain their profit?

8. Do you know what the average daily turnover is in the foreign exchange dealing in London? What is the size of the “spot” transaction?

9. What is the average daily turnover in world leading markets? Find the figure in the text

10. What is the difference between “spot” and “forward” operations in the foreign exchange market?

11. How is the rate of interest determined in “spot” and “forward” transactions? Is there any difference between them?

12. What is meant by international currency liquidity?

13. What consequences may be expected due to insufficient foreign-exchange reserves of the country?

14. What preference is given to in the official foreign exchange reserves of the country?

Ex 2. Find the English equivalents in Text 1.

• международные платежи

• внутренние платежи

• различные национальные валюты

• проблема состоит в том...

• экспортная сделка

• внешнеторговые валютные рынки

• осуществить перевод валюты одной страны в валюту другой страны

• необходимость урегулировать счета

• номинальная цена

• международные торговые потоки

• разница между курсами валют

• средний дневной оборот

• ожидание рынка

• резервный актив

• деноминированные в стабильных резервных валютах

Ex 3. Explain in English the meanings of the following words and expressions.

• spot market

• forward market

• currency risk

• reserve currency

Ex 4.Check the comprehension of the text choosing the answer which, you think, is correct.

1. The basis of international liquidity is

1. Assets of single firms and bank[ing] accounts of natural persons.

2. Internal currency bonds.

3. Gold and foreign-exchange reserves of the country.

2. What is the basis of gold and foreign exchange reserves of the country?

1. Gold reserves in export bars (in a standard fineness), precious metals, and hard currency.

2. National currency and assets of the companies which hold blue chips

3. Joint obligations of the third countries.

3. What determinant can characterize the international currency liquidity?

1. It is the ratio of gold and foreign-exchange reserves of the country to the amount of annual visible exports.

2. It is the ratio of gold and foreign-exchange reserves of the country to net exports.

3. It is the ratio of gold and foreign-exchange reserves of the country to the amount of annual visible imports.

4. What does the decrease of gold and foreign-exchange reserves of the country show?

1. The growth of exports from the country.

2. The scale of deficit of the balance of payments of the country.

3. The growth of imports to the country.

5. What does the increase of gold and foreign-exchange reserves of the country show?

1. The value of the active balance of the country.

2. The deterioration of economic situation in the country.

3. Disequilibrium in trade in the country.