•BANKING

 DOMESTIC BANKING

 INTERNATIONAL
BANKING
DOMESTIC BANKING
 IT INCUDES ACTIVITIES,
TRANSACTIONS AND DEALING
WITHIN THE COUNTRY AND
OBVIOUSLY IN LOCAL
CURRENCY (IN MOST OF THE
CASES)
INTERNATIONAL BANKING

IT INCLUES ACTIVITIES,
TRANSACTIONS AND DEALING :-
BETWEEN BANKS OF VARIOUS
COUNTRIES
OR
BETWEEN CUSTOMERS OF
VARIOUS COUNTRIES THROUGH
THEIR LOCAL OR OTHER
INTERNATIONAL BANKS.
ACTIVITIES
FACILITATING BUYING AND
SELLING OF GOODS AND
SERVICES OF THEIR CUSTOMERS.
INVOLVE IN PAYMENT AND
RECEIPTS ON BEHALF OF
CUSTOMERS.
BUYING AND SELLING OF
VARIOUS CURRENCIES.
IMPORTS / EXPORTS
 IMPORTER BUYS GOODS AND PAYS
MONEY, SO IT WILL DEALER’S
PAYMENT
 EXPORTER SELLS GOODS AND GETS
MONEY, SO IT WILL BE DEALER’S

RECEIPT
(IT IS VICE VERSA AT BOTH ENDS)
TRADING IN CURRENCIES

MONEY CHANGERS/EXCHANGE
DEALERS BUY AND SELL AND
KEEP ON CONVERTING THEIR
FOREIGN CURRENCIES AS THEY
ARE !

TRADING IN CURRENCIES
EXCHANGE RATE
A SPECIFIED RATE AT
WHICH ONE OR MORE
UNITS ONE CURRENCY IS
CONVERTABLE/EXCHANGE
ABLE WITH ONE OR MORE
UNITS OF OTHER
CURRENCY
NAME OF CURRENCIES
ICC (INTERNATIONAL CHAMBER
OF COMMERCE HAS GIVEN 03
ALPHABETIC DIGITS NAME TO
ALL CURRENCIES OF WORLD.
PKR
USD
EUR
(ASSIGNMENT TO BE GIVEN)
EXCHANGE RATE QUOTATION

DIRECT QUOTATION

INDIRECT QUOTATION
DIRECT QUOTATION
 WHEN UNIT/UNITS OF LOCAL
CURRENCY IS SHOWN EQUIVALENT TO
SO MANY UNIT/UINTS OF OTHER
CURRENCY.

 PKR 01 OR RS. 100=*GBP

 PKR 01 OR RS. 100=*USD

INDIERCT QUOTATION
WHEN UNIT/UNITS OF OTHER
CURRENCY IS SHOWN
EQUIVALENT TO SO MANY
UNIT/UNITS OF LOCAL
CURRENCY.
USD=PKR 60
USD=PKR 70
GBP=PKR 100
RATE OFFERINGS
ALWAYS TWO RATES ARE
OFFERED SIMULTANEOUSLY.

BUYING

SELLING
RATIONALE
RATES ARE OFFERED BY MONEY
CHANGERS/EXCHANGE DEALERS
OR AUTHORISED DEALERS AND
THEIR SELLING RATE (LIKE ANY
COMMODITY) IS HIGHER THAN
THEIR BUYING RATE.
THE DIFFERNCE IS TERMED AS
SPREAD
SPOT/FORWARD RATES

 RATES OFFERED FOR A TRANSACTION

ON THE DATE OF OFFER.
SPOT

 RATES OFFERED ON A PARTICULAR

DATE BUT ACTUAL TRANSACTION TO
BE TAKEN ON ANY FUTURE DATE.

FORWARD
FORWARD RATES
ITS OFFER DEPEND UPON THE
NATURE/TREND OF THE
CURRENCY TO BE DEALT.

BULL

BEER
BULL/ BEER
 A CURRENCY WHICH HAS GOT
UPWARD TREND IN TERMS OF RATE OF
EXCHANGE IS
BULL
 A CURRENCY WHICH MIGHT GO DOWN
OR HAS DOWNWARD TREND IS

beer
NOW YOU TELL ME
 WHICH CURRENCY WILL BE DEALT IN !

FORWARD

?
EXCHANGE POSITION
LONG/OVER BOUGHT

SHORT/OVERSOLD

SQUARE UP
MECHANISM

ALWAYS PLAY SAFE

EURO DOLLOR

USD-DEPOSTS OF EUROPEAN
NATIONAL/BANKS
ORGANISATIONS KEPT IN USA
PETRO DOLLOR

USD DEPOSITS OF OIL EXPORTING

COUNTRIES/BANKS
ORGANISATION KEPT IN USA
 SWIFT
SOCIETY FOR WOLRD
WIDE INTERBANK
FINANCIAL
TELECOMMUNICATIONS.
COMMERCIAL PAPER
A MONEY MARKET INSTRUMENT
ISSUED MONEY MARKET
INSTITUTIONS EASILY AND
READILY SALEABLE LIKE
STOCKS, HAVING A FIXED RATE
OF RETURN AND FUTURE
MATURITY (UNLIKE OTHER
MONEY MARKET INSTRUMENTS)
EQUITY/ MONEY MARKET

EQUITY MONEY
 INSTITUTIONS  INSTITUTION
OFFERING OFFERING A
UNCERTAIN CERTAIN RATE
RATE OF RETURN OF RETURN ON
ON NON-
PARTICIPATION PARTICIPTION
BASIS AND ARE BASIS AND NON-
TRANSFERABLE TRANSFERABLE