The process of international settlement

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The process of international settlement A Nation`s National Bank B Nation`s National Bank A Nation`s Local Bank B Nation`s Local Bank A Nation`s Import Company B Nation`s Export company

The structure of foreign exchange market Interbank market Central bank Broker Bank Firm, public, government, etc

Calculation of Spot rates Condition: GBP/USD 1.5800/10; USD/EUR 0.9120/30; USD/JPY 121.45/75 Problem 1: What is the buying rates between USD/EUR 0.9120 Problem 2: What is the selling rates between USD/JPY 121.75 Problem 3:A firm would have EUR against 100 million GDP, how much can the firm get 1.5800 * 0.9120 * 100M = 1.4410 *100M EUR. Problem 4: how much can the firm get JPY against 100M EUR 121.45/0.9130 *100m = 133.13 * 100M EUO