Visual aid 47 – Balance of Payments
Balance of Payments
- Exports of Goods and services
- Sale of existing foreign financial assets
- Foreign loans and borrowings
- Imports of goods and services
- Purchase of foreign financial assets
- Foreign lendings
- Foreign direct investment
- Private short term capital flows
- Official reserves account
- Impact of domestic savings, consumption
Faculty will need to refer extensively to the reading material provided for this learning
unit
Visual aid 48 – Monetary system
Monetary system
- IMF: Capital resources, activities, financing facilities
- System of Bretton woods
- IBRD
- Exchange rate system
- Fixed exchange rate; floating exchange
- Context of international trade with reference to liquidity, adjustment and stability
- Evaluation of international market system.
Faculty will need to refer extensively to the reading material provided for this learning
unit
Visual aid 49 – Foreign exchange market
Foreign exchange market
- Genesis of foreign exchange market
- Stakeholders in foreign exchange markets
- Quotings in foreign currencies
- Two-way quote: spread and cross rates
- Settlements: cash, spot, premium, discount