Sistem Moneter Internasional dalam Mata Kuliah Bisnis Internasional

Summary

This video lecture on international business focuses on the evolution of the international monetary system, from the gold standard to the Bretton Woods Agreement, and finally, to the flexible exchange rate system. It explains the role of foreign exchange markets in facilitating international trade, the different types of exchange rates (buying, selling, and middle rates), and the various exchange rate mechanisms, including floating and fixed rates. The video also provides practical examples of currency exchange calculations, helping viewers understand how to convert currencies in real-world scenarios.

Takeaways

• 😀 The international monetary system has evolved significantly, starting with the Gold Standard, moving through the Bretton Woods system, and eventually to the modern flexible exchange rate system.
• 😀 The Gold Standard (1870-1914) was based on countries pegging their currencies to gold, ensuring stable international trade.
• 😀 World War I (1915-1945) disrupted the global monetary system, leading countries to rely on foreign currencies and exchange quotas due to economic instability.
• 😀 The Bretton Woods system (1946-1972) introduced fixed exchange rates with the US dollar as the central reserve currency, backed by gold, but it collapsed due to large US trade deficits.
• 😀 After 1972, exchange rates became more flexible, no longer tied to gold, and Special Drawing Rights (SDRs) were introduced as international reserves by the IMF.
• 😀 Foreign Exchange (Forex) markets are where currencies are traded, involving central and private banks, as well as money changers, with prices determined by supply and demand.
• 😀 Key Forex terms include 'buy rate' (price for buying foreign currency), 'sell rate' (price for selling foreign currency), and 'mid rate' (average of buy and sell rates).
• 😀 The Forex market plays a crucial role in facilitating international trade, providing credit for foreign trade, and enabling currency exchanges for businesses and individuals.
• 😀 Exchange rate mechanisms include free-floating, managed float, pegging, target zone agreements, and fixed exchange rates, each offering different levels of market intervention.
• 😀 Real-life examples demonstrate how exchange rates work in practice, showing how much currency one receives or needs based on the prevailing rates in various market scenarios.

Q & A

What is the historical basis of the international monetary system before World War I?

Before World War I, the international monetary system was based on the gold standard. Countries pegged their currencies to gold, which provided stability for international trade and economic relations.

How did World War I and II affect the international monetary system?

World War I and II caused significant disruptions to the international monetary system. Countries shifted to using foreign exchange systems and exchange quotas due to economic instability and a shortage of gold.

What was the Bretton Woods Agreement and what did it establish?

The Bretton Woods Agreement, signed in 1944, established the International Monetary Fund (IMF) and the World Bank. It also set up a fixed exchange rate system where the U.S. dollar was the main reserve currency, pegged to gold.

Why did the Bretton Woods system collapse in 1971?

The Bretton Woods system collapsed in 1971 due to large trade deficits in the United States, which put pressure on the dollar and caused a breakdown of the gold-backed system.

What is the current international monetary system after the collapse of Bretton Woods?

After the collapse of the Bretton Woods system, exchange rates became more flexible. Special Drawing Rights (SDR), issued by the IMF, were introduced as an international reserve asset, and the system has continued to evolve.

What is the role of foreign exchange markets in the global economy?

Foreign exchange markets facilitate the buying and selling of currencies. They help transfer purchasing power between countries, provide credit for international trade, and enable currency exchange for cross-border transactions.

What are the key types of exchange rates in the foreign exchange market?

The key types of exchange rates are the buy rate (when a bank buys foreign currency), the sell rate (when a bank sells foreign currency), and the mid rate (the average between the buy and sell rates).

What are the main functions of foreign exchange markets?

Foreign exchange markets perform several functions: transferring purchasing power between countries, providing credit for international trade, facilitating currency exchange, and easing international trade and payments.

What are the different mechanisms for determining exchange rates?

There are several mechanisms for determining exchange rates: free-floating (where rates are determined by market forces), managed floating (where central banks intervene to stabilize rates), pegged (where currencies are linked to another currency or standard), target zone agreements (where countries agree to maintain exchange rates within a specific range), and fixed exchange rate systems (where rates are officially maintained by a government or central bank).

Can you provide an example of how exchange rates affect currency conversion?

In the examples provided, Mr. Wong exchanged 500 Yen at the buy rate and received Rp5,384,520, and for 100 USD, he received Rp1,289,700. The exchange rate determines how much foreign currency is received when converting it into the local currency, which directly impacts international transactions.