Since the beginning of the 19th century the world exchange system has undergone a few stages

in its development. For our panel discussion let us choose the following issues:

1. What is known to you about the world exchange system?

2. What main stages has the world exchange system undergone?

3. What were the main causes for the evolution in the world exchange system?

Written Practice

Summarize the unit in a paragraph of about 300-350 words.

Unit 7. Foreign Exchange Markets.

International Currency Liquidity

Preview Basic notions

In this unit we will try to understand how

Means of payment

The currency (foreign exchange) market reserve func position

Tions, in what way export-import b a n k i liqnuidgity poosiptionerations

Are exercised and w h a t t habielity i tno ptaye (rton meaet piaoymnenats)l

Currency liquidity m gold aend foreaign exnchange sreserv.es saevrse rste

C u r r e n c y

(e x c h a n g e,

F o r e i g n

Exchange)market

Warm-up

Before you start reading the unit think and try to answer the following questions:

1. What do we know about the international currency liquidity?

2. Who keeps gold and foreign exchange reserves?

3. In what way is the foreign exchange rate determined?

Rapid Reading (skimming, scanning, reading for general understanding

Of the basic Text 7.4)

Work in pairs or small groups.

Read the text rapidly and try to understand what it is about and what information is of primary