Professional Documents
Culture Documents
Financial Strategies:
Financing and
Currencies
Chapter Outline
Nonfinancial Institutions
- Self Financing and Debt Financing
- Equity Financing
Financial Institutions
Government Agencies
Chapter Outline
International Financial
Institutions/Development Banks
– World Bank
– International Development Association (IDA)
– International Finance Corporation (IFC)
– Multilateral Investment Guarantee Agency (MIGA)
– International Centre for Settlement of Investment
Disputes (ICSID)
IMF (International Monetary Fund)
Chapter Outline
Money
Foreign Exchange
Foreign Exchange Market
Foreign Exchange Rate
- Currency Equilibrium
- Effect of Devaluation
Chapter Outline
Exchange-Rate Systems
- Gold Standard
- Par Value (Adjustable Peg)
- Crawling Peg (Sliding or Gliding Parity)
- Wide Band
- Floating (Flexible) System
Official Classification of Exchange Rate Regimes
Evaluation of Floating Rates
Chapter Outline
own capital
withholding of dividends
trade credit
joint venture partners
borrowing from affiliated firms and employee
retirement fund
issuing commercial paper or bonds
Equity Financing
Selling Stock
Venture Capital
Financial Institutions
Factoring Houses
Forfaiting
Banks
Government Agencies
Concessionary Financing
Mixed/Blended Credit
International Financial Institutions/
Development Banks
- medium of exchange
- unit of account
- store of value
Foreign Exchange Market
Credit (Financing)
Clearing
Hedging
Spot Market vs. Forward Market
Foreign Exchange Rate
Currency Equilibrium
Effect of Devaluation
- Exports and Employment
- Imports and Consumer Welfare
Exchange Rate Systems
Gold Standard
Par Value (Adjustable Peg)
Crawling Peg (Sliding or Gliding Parity)
Wide Band
Floating (Flexible) System
Official Classification of Exchange
Rate Regimes
Floating Exchange Rate Regimes
- independently floating regimes
- managed floating regimes
Intermediate Exchange Rate Regimes
- soft pegs
- tightly managed floating regimes
Hard Peg Regimes
- currency boards
- exchange rate regimes with no separate legal tender
Financial Implications
and Strategies