INTERNATIONAL MONETARY

SYSTEM
MUTIA ADE RACHMAYANTI (C0D016008)
MUHAMMAD RAFLY ANUGRAH (C0D016010)
WENINGDIAH N. H (CODO16018)
ARIF SEPTIAWAN (C0D0160024)
RANI ADHARI (C0D016031)
DINA LUTFI HANIFAH (C0D016041)
MULIA ORIANTI (C0D016043)
YONA AJI S
HISTORY OF THE INTERNATIONAL MONETARY
SYSTEM
1. The Gold Standard
2. The Collapse of the Gold Standard
3. The Bretton Woods Era
• The International Bank for Reconstruction and
Development
• The International Monetary Fund
• A Dollar-based Gold Standard
4. The End of the Bretton Woods System
THE BALANCE OF PAYMENTS ACCOUNTING
SYSTEM
BOP
1. A double-entry bookkeeping system designed to measure and record all
economic transactions between residents of one country and residents of all
other countries during a particular period of time.
• Helps policymakers understand the performance of each country’s
economy in international market
• Provides clear warning of the deteriorating performance of the
countries in crisis and the increasing riskiness of there overextended
external debt positions
• A careful reading of BOP could protect international bankers from bad
investment
• Provides valuable economic intelligence information
THE BALANCE OF PAYMENTS ACCOUNTING
SYSTEM
The Importance of BOP
1. Help identify emerging markets for goods and services
2. Can warn of possible new polices that may alter a
country’s business climate
• affecting the profitability of a firm’s operations in that
country
3. Can indicate reductions in a country’s foreign-exchange
reserves
4. Can signal increased riskiness of lending to particular
countries
THE MAJOR COMPONENTS OF THE BALANCE
PAYMENTS ACCOUNTING SYSTEMS

1. Current Account
2. Capital Account
• Record purchase of goods, services, and assets by the
private and public sectors
3. Official Reserves Account
4. Errors and Omissions
• Captures mistakes
THE MAJOR COMPONENTS OF THE BALANCE
PAYMENTS ACCOUNTING SYSTEMS

Current Account
1. Exports & imports of goods (merchandise)
2. Exports & imports of services
3. Investment income
• Export of the services of capital
• Export of the services of capital
4. Unilateral transfers (or Gifts)
• Gifts between residents of one country and another
 THE FOREIGN EXCHANGE MARKET

The Foreign Exchange Market is the exchange of money from different currency
values. Foreign exchange is a mechanism by which people can transfer
purchasing power between countries, obtain or provide credit for international
trade transactions, and minimize the possibility of exposure of risk due to
fluctuations in the exchange rate of a currency.
FUNCTION OF FOREIGN EXCHANGE

1. International exchange
2. International payment insurement
3. Exchange control tool
4. Tool for streamlineing international trade
THE STRUCTURE OF FOREIGN EXCHANGE MARKET

The meaning of the structure of the foreign exchange market

There are two levels in the foreign exchange market :
1.) consumer or retail market
2.) Interbank market
There are four types or four levels of participant, transactionsin the foreign
exchange market are :
1.) Eksporters, tourist, and investors
2.) Commercial Bank
3.) Brokers
4.) Central Bank
THE STRUCTURE OF FOREIGN EXCHANGE MARKET

Foreign exchange trading is divided into three major market segments

1.) Zones – Australia  Sidney, tokyo, Hong Kong, Singapore,

and Bahrain (07.00 – 14.00 WIB)
2.) Zones – europe  Zurich, Frankfurt, paris, Brussel, Amsterdam and
London (13.00 – 23.00 WIB)
3.) Zones – North America  New York, Montreal, Toronto, Chicago,
San fransisco, and Los Angeles ( 19.30 – 04.00 WIB)