I. Learn the following words. Borrow–заимствовать

debt-долг

launch-вводить

dismiss–смещать

rate-уровень

borrow–заимствовать

swap-замена

tap–удаление

II. Answer the following questions:

1. What does the author say about the euro's performance on the foreign exchange markets?

2. What are the most popular currencies, according to the text?

3. How do specialists account for the dollar's popularity in the financial markets over the last 30 years?

4. What are the possible reasons for the fact that the volume of bonds launched by US companies in euros has outweighed those issued by European companies?

5. How do analysts account for the euro’s weakness against the dollar?

6. Why did European investors decide to diversify away from domestic government bond markets?

7. How many markets do borrowers have now? What will their decision depend on?

III. Complete the sentences with suitable word combinations from the box:

the foreign exchange market; the international bond markets; the single currency; the debt markets; domestic currency; foreign exchange reserves.

1. The euro has proved the most popular currency on the … .

2. The … pipped dollar to the post as the denomination of choice for borrowers.

3. Economists attribute the euro’s success on the … to the growth of liquid capital markets.

4. Great Britain doesn’t refuse of its ….

5. Non-European central banks are expected to step up their purchase of euro-denominated securities to rebalance ….

6. The situation with the euro on the … is very complicated nowadays.

IV. Translate the following sentences into Russian, explain the italicized grammar constructions:

1. With the equivalent of almost $600bn worth of bonds launched in euros during the past 12 months, the single currency pipped the US dollar to the post as the denomination of choice for borrowers.

2. Both currencies accounted for about 45 per cent of all bond issuance in 2009, compared with less than 10 per cent for sterling, the third most popular currency.

3. The euro's weakness against the dollar may also have been helped by the fact that US borrowers will swap the proceeds of their issues by selling euros for dollars.

4. Economists attribute the euro's success on the debt markets to the growth of liquid capital markets in Europe.

5. The trend has been boosted by the decision of European investors to diversify away from domestic government bond markets.

V. Fill in the blanks with the articles if needed:

Investors, it seems, cannot have too little of …euro. On May 3rd the currency fell below 90 cents for … first time, nearly a quarter below … rate at which it was launched at … beginning of last year. Pessimism about … Europe's economic performance compared with … America's is partly to blame. But many also blame the woeful performance of the euro on its … guardian, the European Central Bank (ECB).

The ECB, critics allege, lacks … transparency both in its policy goals and in … way it makes interest-rate decisions. Many claim that conflicting statements by officials, either on the euro or on … interest rates, have confused financial markets and undermined the ECB'S credibility. America's Federal Reserve, in contrast, is much more transparent and knows exactly what it is doing.

Yet this is all a bit odd. The ECB has had some communication problems, certainly. But the charges against it - … lack of transparency, unclear goals and internal divisions - apply as much, if not more, to the Fed.

VI. Summarise the text, using the words and phrases given below:

To prove the most popular currency in the international bond markets; to launch bonds; to pip the US dollar; to establish a benchmark in the euro for public relations purposes; to step up the purchase of euro-denominated securities; to increase borrowing costs; to tap the euro.

VII. Translate into English:

1. Объем еврооблигаций, выпущенных американскими компаниями, намного превосходит количество таких облигаций, эмитированных в Европе.

2. Данная ситуация в некоторой степени определяется уровнем процентных ставок в еврозоне, где американские компании имеют возможность осуществлять займы в евро под меньший процент.

3. Причина роста популярности евро заключается в том, что новая валюта позволит многим инвесторам диверсифицировать свои вложения, не ограничиваясь государственными ценными бумагами.

VIII. Work in several groups. Supply details to support the following statement: "euro proves top currency".

IX. Explain the meaning of the following statement:

There is a connection between the weakness of the euro and its popularity among borrowers - namely, low interest rates.

X. Dwell upon the current performance of the euro.