Economic operations between participants in international relations are impossible without the exchange of one national currency to another. The proportions in which the currency of one country is exchanged per currency is called a currency rate. In other words, each foreign monetary unit has a foreign exchange rate, expressed in the national currency of another country.

The exchange rate is required to exchange currencies in trade in goods and services, the movement of capital and loans; To compare prices in world commodity markets, as well as the cost indicators of different countries; For periodic reassessment of accounts in foreign currency firms, banks, governments and individuals. The exporter shares the proceeded foreign currency to the national, since the currencies of other countries cannot apply as a legitimate purchasing and means of payment in the territory of this state. The importer shares the national currency for foreign goods purchased abroad.

Currency courses are divided into two main types: fixed and floating.

A fixed currency course varies in narrow framework. Floating currency courses depend on market demand and expense on the currency and can be significantly fluctuated in magnitude.

The fixed rate is based on currency parity, i.e. The officially established relationship of monetary units of different countries. With monometallism - gold or silver - the base of the currency rate was the mint parity - the ratio of monetary units of different countries by their metallic content. He coincided with the concept of currency parity.

When gold monometallism, the currency rate relied on the gold parity - the currency ratio of their official gold content - and spontaneously fluctuated around it within the golden points. The classic mechanism of golden dots acted under two conditions: free purchase - sale of gold and its unlimited export. The limits of currency exchange rate fluctuations were determined by the costs associated with the transportation of gold abroad, and were actually not exceeded +/- 1% of parity. With the cancellation of the Golden Standard, the mechanism of golden points has ceased to act.

The exchange rate with undequented credit money was gradually broken off from gold parity, as gold was displaced from handling treasure. This is due to the evolution of commodity production, monetary and currency systems. Until the mid-70s, the base of the exchange rate was the gold content of currencies - the official scale of prices - and golden parries, which IMF was recorded after the Second World War. Meril currency ratio was the official price of gold in credit money, which, along with commodity prices, was an indicator of the degree of impairment of national currencies. In connection with the separation for a long time, the official price of gold from its value, the artificial character of gold parity increased by the state-fixed state.

For more than 40 years (1934-1976), prices and gold parity were installed on the basis of the official price of gold. When the Bretton Woods Monetary System, due to the domination of the dollar, the dollar served as the point of reference of the currency of other countries.

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Topic 5. International Financial System

5.2. World monetary system

World monetary system - This is a form of organization of currency relations regulated by national currency legislation and interstate relations.

The world currency system includes items:

1. World cash product - Currency. Under the currency understand the goods capable of performing the functions of money in the world economy. National currency is a legitimate payment facility in the territory of this country. Foreign currency is a legal means of payment in other countries.

2. Exchange rate - It is defined as the value of the monetary unit of one country, expressed in the monetary units of another country. Currency exchange rates are:

Fixed - based on currency parity, i.e. The officially established relationship of monetary units * of different * countries;

Floating - depend on market demand and currency supply, it can significantly fluctuate in magnitude.

3. Foreign exchange markets - A combination of monetary requirements and obligations of non-residents to each other.

4. International Monetary and Financial Organizations .

5. Interstate agreements .

All currency transactions are divided into two types:

Current currency transactions;

Currency transactions related to the movement of capital.

The following world currency systems were peculiar to various stages of the development of the world economy.

To develop the interaction of institutional units of different countries, within the framework of the global economic community, it is necessary to have a mechanism that allows, on the one hand, the parameters of economic development on the one hand, and on the other, it is calculated for goods and services purchased abroad. Similar mechanism and is a currency course.

The exchange rate is the cost of a monetary unit of one country, expressed in monetary units of another country (for example, 32.41 of the Russian ruble for 1 US dollar).

The exchange rate is required to exchange currencies in trade in goods, services, the movement of capital, loans; To compare prices in world commodity markets, as well as the cost indicators of different countries; For periodic reassessment of accounts in foreign currency firms, banks, governments, individuals, etc.

Through the exchange rate, the national limitation of the currency is overcome and there is a transformation of its local value in the value of international. In this case, a uniform cost criterion is formed, allowing you to organize and regulate the currency and exchange process (buying-selling various currencies).

In theory, five main exchange rates are distinguished: free swimming, controlled swimming, target zones, fixed courses, hybrid exchange rate system.

Thus, in the free swimming system, the exchange rate is formed under the influence of market demand and suggestions. The currency market is most close to the model of the perfect market: the number of participants both on the demand side and on the side of the proposal is huge, any information is transmitted in the system instantly and accessible to all market participants, the distorting role of central banks is insignificant and inconstant.

In the system of controlled voyage, in addition to demand and suggestions, the central banks of countries and various other temporary market distortions have a significant impact on the value of the exchange rate.

An example of a system of fixed courses is the Bretton Woods Monetary System 1944-1971. In it, the exchange rate of all currencies was fixed to the dollar with the oscillation limit of ± 1%, and the US dollar was tightly tied to gold: $ 35 - 1 Treasted Gold Once.

The target zone system develops the idea of \u200b\u200bfixed exchange rates. Its example is the fixation of the Russian ruble to the US dollar for six months during 1995-1998.

Finally, an example of a hybrid exchange rate system is a modern currency system in which there are countries that apply the free sailing of the exchange rate, there are stability zones, etc. Detailed enumeration of exchange rates of rational exchange rates "/ Lran acting at present can be found, for example , in the IMF publication: International Financial Statistics Yearbook. Vol. Xlviii. Washington, 2000.

The basis of the modern currency rate forms a whole range of curse-forming factors. Equality of these factors is not only the price level, but also the state of the balance of payments, the cost of the loan, the scale of capital migration, the rate of economic growth, the prospects for political development, etc. - determines the value of the exchange rate at each time of time. For practical purposes, several estimates of the exchange rate are used to assess the rate of economic development, economic planning and forecasting.

Currency courses can be classified according to various features.

Currency Currency Currency Classifications Criteria Wail Current Freedom Freedom Flood Floating 0 Fixed Mixed Calculation Method Parity Actual Establishment Method Official (Exchange) Actual (Bank) Currency Parity Currency Parity Film Increased Increased Inflation Current Nominal Tourist Record (Banknote) Currency (exchange deposits) According to the degree of freedom of fluctuations, currency courses are divided into fixed, floating and mixed.

A fixed exchange rate is a unified system of exchange rates based on official currency parity, agreed by member countries, expressed in gold or in US dollars. National currency market courses are supported at ± 2.25% of oscillations in relation to parity.

The fixed rate is based on currency parity, that is, the officially established relationship of monetary units of different countries.

Currently, the concept of a tied / fixed exchange rate is more often used - the officially established relationship between national and foreign currencies, which allows for a temporary deviation from it to one direction or another to the officially established value.

The fixation / binding is usually unilateral and is obligatory only for the country who chose this currency rate mode. An exception to this rule is the EU countries that have mutual commitments to maintain their currencies.

For the options for fixing / binding a national currency rate include:

Fixation to one currency - the binding of the national currency rate to the foreign currency rate, which has the greatest value in the total volume of international settlements of the country;

Currency management - fixation of the course of the national currency to the base, which, as a rule, is the most used currency in international calculations. At the same time, a number of conditions are followed: the total coating of the monetary base in stocks of foreign currency, the automatic mechanism of the issue of money carried out only when buying a base currency, the internal loan to the government and the central bank is completely excluded;

Foreign exchange corridor - officially established limits of currency exchange rate limits when the state assumes obligations to maintain them;

Fixation to the currency composite - fixation of the course of the national currency to the courses of collective monetary units, such as the SDR, or to various "baskets" currencies of countries - the main trading partners.

Floating currency courses depend on market demand and expense on the currency and can be significantly fluctuated in magnitude. In the floating exchange rate mode, freely convertible currencies are usually located.

A floating exchange rate is a mechanism for establishing and maintaining a national currency exchange rate, in which it freely changes as a result of the interaction of supply and supply in the foreign exchange market. Most countries carrying out the free swimming policies of their currencies, nevertheless, the policies of the managed ("dirty") swimming, within which central banks of countries periodically interfere with the work of the foreign exchange market in order to maintain the course of their own currency with its strong fluctuations at a certain point in time. For this, the mechanism of currency interventions is used.

Mixed currency course combines elements of fixed and floating exchange rates. An example of such a currency course was the courses of national currencies - countries of the European Monetary Union (1979-1999), which were fixed to 1 ECU, and through it, respectively, tightly tied to each other, but in relation to the currencies of countries not included in the ESU were in free swimming.

According to the inflation, currency courses are divided into real and nominal.

The nominal currency rate shows the exchange rate of the currency currently operating in the country's foreign exchange market.

The real exchange rate is a nominal exchange rate adjusted with inflation in countries. To assess the level of inflation, use price indices that reflect the degree of change in the total price level in the country. The consumer price index is most often used, which is best reflecting the inflation rate in the country.

The course of the national currency may vary unequal in time in relation to various currencies. So, in relation to strong currencies, he may fall, and relative to the weak - to rise. For example, in 1995, the US dollar fell on the Japanese yen and the German brand, but was strengthened in relation to the Mexican Peso. In the 1980s, the course of the English pound of sterling was significantly hesitated (then grew, it fell) in relation to the US dollar, Italian Lather, French Frenal, decreased in relation to the Ien and German brand. Therefore, to determine the dynamics of the currency rate as a whole, the exchange rate index is calculated, or an effective exchange rate. With its calculation, each currency receives its own weight, depending on the share of the foreign economic transactions of this country. The sum of all scales is 1 (100%). Currency courses are multiplied by their weight, then all the values \u200b\u200bobtained are added and their average value is taken. For practical purposes, the dynamics of the currency of those countries that are the main trading partners of the country are taken into account, since their currencies are presented with national importers and their currencies receive national exporters.

Thus, the total currency rate index of Found Sterling from 1980 to 1987 showed a decrease in the course of the pound in relation to all major currencies, during 1988. Raising the course. So, in 1988, it was 95.5, and in 1981, 119.0. Over the past 30 years (from 1970 to 2000), the courses have increased only three currencies: the German brand, Japanese yen, the Swiss franc.

Allocate nominal efficient and real effective exchange rates.

The nominal effective exchange rate is the exchange rate index calculated as the ratio between the national currency and the currencies of other countries weighted in accordance with the specific weighing of these currencies in the currency transactions of this country.

In the calculation of the nominal efficient course, expert assessments play a significant role. For example, according to the IMF methodology, it is necessary to calculate it:

Choose the base year to which all exchange rates are recalculated;

Choose a method of averaging exchange rate for the year;

Determine the proportion of each of them in the trade turnover of this state;

Weigh them on the specific gravity of these countries in the trade turnover of this country.

Thus, a nominal efficient exchange rate reflects the change in not only the value of the currencies themselves, but also price levels in each of the countries. To determine the real trends of the effective exchange rate, in it, as in the case of the real exchange rate, the movement of prices or production costs of both in their own country and in all the foreign countries taken into account are taken into account.

A real effective exchange rate - a nominal effective exchange rate, adjusted to the change in price level or other production costs, which characterizes the dynamics of the real exchange rate of the country to the currencies of countries - the main trading partners.

The trend of changes in the real effective exchange rate is the main indicator characterizing the generalized dynamics and the direction of movement of core currencies, it can serve as a basis for the conclusions about the nature of their development. In addition, the real effective course of the national currency is the main indicator that characterizes the competitiveness of countries in the global market. If it rises, the competitive positions of the country in the world market deteriorate: exports are becoming more expensive and reduced its volume, import, on the contrary, will be cheaper and its volume is growing. In addition, the increase in the real effective exchange rate compared to periods when the country's economy was at a more prosperous level of development, shows the size of the national currency devaluation necessary to restore its international competitiveness and achieving balance of balance of payments.

By the method of establishing currency courses are divided into official and actual.

The official (stock exchange) exchange rate establishes the central currency exchange of the country. At this rate, all government calculations with the outside world are committed. In the Russian Federation, the official currency rate is the course of the Central Bank, established at the Moscow Interbank Currency Exchange (M & W).

The actual banking rate is a course that residents of this country can make settlements with foreign partners. Usually, such a course is offered by the main participants of the foreign exchange market - commercial banks.

In relation to a parity, the official exchange rate can be either overestimated or understated. This has a significant impact on the development of foreign trade in the country through changes in the price ratios of exports and imports, causing changes in the intracocumenic situation, as well as changing the behavior of exports or competing firms.

In general, the impairment of the national currency provides the opportunity to exporters to lower prices for their products in foreign currency, when it is met, the same amount in national monetary units. It increases the competitiveness of exported goods and creates conditions for increasing exports. Import the same thing is hampered, since to obtain the same amount in their foreign currency, foreign exporters are forced to raise prices. At the same time, the growth of import prices occurs (if the demand for imports is inelastic at prices), and after this, the growth of their general levels. Reverse phenomena are observed when strengthening the national currency.

Many countries manipulate exchange rates to ensure objectives in the field of both economic development and protection against currency risk. Manipulation includes a number of events - from artificial understatement or, on the contrary, overestimation of national currency courses, the use of tariffs and licenses to the intervention mechanism.

In relation to the purchasing power parity currency, national currency courses can be overestimated, lowered and parity.

The overseas course of the national currency is the official course set at the level above the parity course. In turn, the underestimated exchange rate is the official course set above the parity. The parity exchange rate is defined as the ratio of the values \u200b\u200bof the "baskets" of goods and services of the two countries expressed in their national currencies.

Sometimes different exchange rates are installed for various participants in the foreign exchange market, depending on the operations carried out (commercial or financial). Course for commercial operations is usually understated. First, for countries, artificially engaged in the course of their own currency, there is a revival of the economy caused by increasing export competitiveness. However, the restrictions on the intra-separable and intersectoral redistribution of resources are increasing, most of the national income is sent to the production sphere due to the reduction in consumption in it; This leads to an increase in the level of consumer prices in the country, which contributes to the deterioration of the living standards. A negative impact on the change in the proportions of the national economy can also have an artificial maintenance of a permanent exchange rate, the level of which is significantly different with parity, which leads to the consolidation of one-sided orientation in the development of certain sectors of the economy.

According to the method of selling currency distinguish tourist (banknote) and currency (exchange deposits) courses.

According to the tourist rate, cash banknotes and coins are exchanged in exchange offices, as a rule, commercial banks. Used, as a rule, in relation to individuals.

The exchange rate is used by commercial banks when conducting operations in the foreign exchange market with cashless currency, usually in the implementation of conversion operations of various urgency.

The method of establishing a foreign exchange course is called a quotation. Distinguish direct and reverse currency quotes.

Under the direct quotation is understood as the establishment of a exchange rate, in which a certain amount of national is given per unit of foreign currency. For example, for 1 US dollar, 31,256 Russian rubles are given. This is a variable quotation of the US dollar in the Russian foreign exchange market.

With a reverse quotation, a certain number of foreign currency is given for the unit of national currency. Traditionally, currencies are quoted, which are stronger than the US dollar, are, as a pound sterling (English and Irish), SDR and other currencies. For example, 1 pound sterling gives 1.4373 US dollars in the United Kingdom's foreign exchange market.

The currency is quoted to the base paragraph - 0.01%, i.e. until the fourth sign after the comma. For example, 1.6365 Swiss franc for 1 US dollar.

In the example above, the basis item is the figure "5". If the US dollar in relation to the Swiss Frank will grow by 10 points, the quotation will be 1,6375 Swiss franc for the US dollar. When falling the course of the US dollar per 100 points, the Swiss Franca rate will be 1,6265 per 1 dollar CSHA.

The currency, which is the unit of measurement in the quotation, is called basic duct. In our example, this is the USDollar. Currency, a certain amount of which is equated to a single currency unit, is called quoted. In our example, this currency is the Swiss franc.

Some currencies have a small scale, so with their quotation for the base, not one, and 100 units (for example, Japanese yen), 1000 (for example, Belarusian rubles), 10 (for example, Danish and Swedish kroons), 1000,000 units (for example, Turkish lira).

Monetary unit of the countryit is a legally enshrined payment facility, compulsory for settlement operations in the state. It is a physical carrier of it. Paper banknotes or bills and metal coins manufactured to provide cash circulation. The monetary unit has a walking and in cashless form for settlements between business entities and individuals.

Payment tools in each of the independent states have their own names, approved, as a rule, by a special legislation.

List of monetary units of the largest countries of the world:

• Australia - Australian dollar;
• Argentina - Argentinean;
• Brazil - Brazilian Real;
• United Kingdom - pound sterling;
• - Euro;
• India -;
• Canada - Canadian dollar;
• Chinese People's Republic - Yuan;
• The Russian Federation - ;
• United States of America - Dollar;
• Japan - Yen.

The names of national monetary units may have historical origin from the names of coins that had to go in this area. In another case, these are specially invented synthetic words. So, when the question of European currency was resolved, neutral name was proposed - euro. This name did not infringe upon the national pride of the inhabitants, not one of the countries included in the Union.

Monetary units of all countries of the world have three-letter designations in the form of codes established by the International Standard ISO 4217: 2008. They are used in official banking and legal documents for the convenience of users and allow you to unambiguously identify the currency. This is especially true for payment facilities having the same name. For example, the American dollar has a USD code, Canadian - CAD, Australian - AUD.

In the overwhelming majority of states, existing monetary units are existing for the convenience of calculations. They usually constitute one hundredth of the main monetary unit of the country. So, the Russian ruble consists of 100 kopecks, and the American dollar is from 100 cents. The names of many exchanged coins have Latin roots, the basis for them is the word centum - one hundred.

In individual states there are more complex systems of the cooding of the main and exchangeless monetary units:

• In Saudi Arabia, one consists of 20 chirski, which, in turn, is 5 halals.
• In Madagascar and in Mauritania, the basis of the cash circulation is made a five number system. One Ariairi is equal to 5 Irahymbilate, and one yoy consists of 5 humbles.
• The sovereign military Order of Hospitallers St. John of Jerusalem Rhodes and Malta has a monetary unit called Maltese and consisting of 12 tari or 240 grano.
• In Libya, Tunisia, Oman, Bahrain, Iraq and Kuwait, the payment facility consists of thousands of exchange coins.
• In Vietnam, Hong Kong, Jordan, China and Macau, the ratio between the main monetary unit and the exchangeless - 1 to 10.

In countries with a high level of inflation, small coins are practically not used in cash and non-cash cash payments. So in our country a penny practically came out of circulation, such a situation has developed in due time in Japan. The refund of the exchange coin is usually occurring during monetary reform in the form of a denomination. A recent example is economic transformations in the Russian Federation in 1998.

Concept of settlement monetary units

Separate countries are developed and used special payment resources for calculating the transfer of funds between accounts. Estimated monetary units can only be used in the field of non-cash circulation. In most cases, they are entries in registries on electronic or paper media and have a limited action.

In some countries, surrogate payment facilities can be introduced in economic instability or foreign currencies. They can be used in cash circulation, for which bills are issued and coins are minted. So, on the island of freedom, in parallel with the Cuban peso, its convertible shape is used, and in Myanmar, a special exchange certificate.

monetary Bretton Woods Currency

The International Monetary System includes a number of constructive tools, among which you can select the following:

world cash product and international liquidity;

exchange rate;

foreign exchange markets;

international monetary and financial organizations;

interstate agreements.

The development of foreign economic relations requires a special tool through which the subjects operating in the international market could support close financial cooperation among themselves. Such a tool is the banking operations for the exchange of foreign currency. The most important element in the system of banking operations with foreign currency is the exchange rate.

The exchange rate is defined as the value of the monetary unit of one country, expressed in the monetary units of another country. The exchange rate is required to exchange currencies in trade in goods and services, the movement of capital and loans; To compare prices in world commodity markets, as well as the cost indicators of different countries; For periodic reassessment of accounts in foreign currency firms, banks, governments and individuals. The formation of the exchange rate is carried out in the foreign exchange market. However, the exchange rate is not just the "price" of one monetary unit, expressed in another, but a complex synthetic indicator of value comparison of two national economies.

It is customary to distinguish between the nominal and real exchange rates. The nominal exchange rate is the relative price of the currency of the two countries. Real is the relative price of goods produced in two countries. In other words, the real exchange rate reports to us, in what ratio we can change the goods of one country on the goods of another.

Currency courses are divided into two main types: fixed and floating. The fixed rate is based on currency parity, that is, the officially established ratio of monetary units of different countries. Floating currency courses depend on market demand and expense on the currency and can be significantly fluctuated in magnitude.

Fixed currency course - This is the officially established relationship between national currencies, which allows temporary deviation from it to one or the other side by no more than 2.25%.

Course fixation can be carried out in various ways:

Course fixation to one currency - means binding a national currency rate to the course of the most significant currencies of national settlements. Usually such a binding is carried out by less developed countries with respect to currencies of more developed countries. Moreover, such countries with which there are close trading relationships. The motives of the implementation of such a policy are quite obvious: a guarantee of the stability of trade relations, first of all, for long-term contracts and preventing the impact of possible, in the event that the binding was not carried out, fluctuations in the exchange rate to change the price level in the country;

Course fixation to currency composite - Binding the course of the national currency to the courses of collective monetary units or to various currency baskets of countries that are the main trading partners. The proportion of currencies in baskets composed for the course fixation, usually reflects the weight of countries using this currency in foreign trade in goods and services and the movement of the capital of this country.

It should be noted that in practice, rigidly fixed exchange rates are rare. Moreover, it is quite difficult to work.

Floating currency course - This course freely changing under the influence of supply and suggestions to which the state may have an impact under certain circumstances through currency interventory. Curchase mechanisms with a floating currency course are divided into:

"Clean swimming" - cursion without the intervention of the central bank on the foreign exchange market;

"Dirty swimming" - cursoment with active interventions of the central bank in the foreign exchange market.

There are a number of factors leading to a change in the fundamental equilibrium exchange rate of the currency. They are divided into structural (valid in the long term) and conjunctural (causing short-term fluctuations in the exchange rate).

TO structural factors relate:

competitiveness of the country's goods in the global market;

state balance of the country's balance;

purchasing power of monetary units and inflation rates;

the difference in interest rates in different countries;

state regulation of the exchange rate;

the degree of openness of the economy.

Conjunctural factors associated with vibrations of business activity in the country, political situation, rumors and forecasts. These include:

activities of foreign exchange markets;

speculative currency transactions;

crises, war, natural disasters;

cyclicity of business activity in the country;

forecasts

In the current conditions of globalization of the economy, the decisive impact on the exchange rate is provided overflows of capital between different currency and financial markets

An important role is played and political expectations. Thus, the stable political situation increases the attractiveness of investment in the country's economy and contributes to the rise of the national currency. Other things being equal inflation rate In the country, inversely affects the value of the national currency

Change interest rates affects the currency rate of two. On the one hand, their nominal increase in the country causes a decrease in demand for the national currency, as entrepreneurs becomes expensive to take a loan. Taking it, entrepreneurs increase the cost of their products, which, in turn, leads to an increase in prices for goods within the country. This comparatively depreciates the national currency against foreign. On the other hand, an increase in real interest rates (i.e., nominal interest rates adjusted to the inflation rate) makes it difficult to accommodate funds in this country for foreigners more profitable. That is why capital flows into the country with higher interest rates, the demand for its currency increases, and it becomes more expensive

Payment balance directly affects the value of the exchange rate. Thus, an active balance of payments contributes to an increase in the national currency exchange rate, since the demand for it from foreign debtors is increasing. The passive balance of payments generates a tendency to reduce the exchange rate, since domestic debtors try to sell it for foreign currency to repay their external obligations. The dimensions of the effect of the balance of payments on the exchange rate are determined by the degree of openness of the country's economy. So, the higher the share of exports in the gross national product (the higher the openness of the economy), the higher the elasticity of the exchange rate for changing the balance of payments.

National incomeit is not an independent component that can change by itself. However, in general, those factors that force national income to change have a great influence on the exchange rate. So, the increase in product supply increases the course of the currency, and the increase in domestic demand reduces it.

In addition, the cursion factors include speculation on currency markets. The game on unknown (alleged) exchange rates. This operation is carried out by the participants of the financial market in order to receive profits on the difference in exchange rates.

Finally, a significant impact on the course of the national currency is provided seasonal peaks and decay of business activity in the country [Ibid]

Currently, it is safe to say that currency courses are an important point of the entire system of international economic relations, and the entire complex of internal and external factors determining the development of a particular country's economy affects the dynamics of exchange rates.