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INTRODUCTION

1. Theoretical foundations of foreign exchange transactions by commercial banks

2. Analysis of foreign exchange transactions using the example of Absolutbank CJSC

2.1 Analysis of currency transactions of Absolutbank CJSC with the participation of individuals.

2.2 Analysis of the profitability of foreign exchange transactions of Absolutbank CJSC

3. Main directions for improving the mechanism for conducting cash foreign exchange transactions

3.2 Ways to increase the economic efficiency of using software for accounting foreign exchange transactions

CONCLUSION

LIST OF SOURCES USED

APPENDIX A

APPENDIX B

INTRODUCTION

Banks are a necessary financial institution at this stage of development. They help make the production process continuous, concentrating temporarily free funds for this purpose and directing them to where they are currently needed. The specificity of the activities of banks is that, unlike ordinary enterprises, they operate mainly with other people's (raised) funds and therefore they bear a huge responsibility for the safety of the money entrusted to them.

It is also characteristic of modern banking that not only the “traditional” monetary instruments are constantly being improved, but new forms and methods of banking influence on the economic life of society are constantly emerging. All of them are aimed, explicitly or implicitly, at maintaining economic equilibrium. However, other economic regulators should also be focused on this. Ignoring this circumstance has led and continues to lead to the most severe consequences for the economy of states with any social structure. This applies, for example, to the phenomenon of excess money supply, to long-term directive fixation of the exchange rate of the national currency, as well as other attempts to forcefully regulate the monetary sphere.

The banking system is the most important component of a market economy. A modern state with a market economy, using various monetary instruments, can influence almost all parameters of social production, therefore the study of the problems of foreign exchange transactions of commercial banks is relevant.

Each of the subjects of a market economy is indirectly or directly interested in the reliability and profitability of a commercial bank. The solution to this problem can be planning and effective management of the financial resources of a commercial bank, and in particular, conducting foreign exchange transactions with the participation of individuals and legal entities.

Thus, the relevance of the chosen topic is beyond doubt. This study is also significant because in Belarusian banking practice there is still no clearly developed planning methodology. Implementing activity planning in practice allows you to clearly formulate the goals on the basis of which the further activities of the credit institution will be built, and also makes it possible to consider probable scenarios for the development of the bank.

The purpose of the thesis research is to develop proposals for improving the conduct of foreign exchange transactions by commercial banks using the example of Absolutbank CJSC.

The object of the study is Absolutbank CJSC. The subject of the study is the problem of conducting foreign exchange transactions.

To achieve this goal, the following tasks must be solved in the thesis:

Consider the theoretical aspects of the formation of foreign exchange transactions of a commercial bank;

Conduct a meaningful analysis of the currency transactions of Absolutbank CJSC for 3 years;

Make proposals for improving the conduct of foreign exchange transactions of Absolutbank CJSC.

The following methods of analysis were used in the work: horizontal, vertical, comparative.

The first chapter of the thesis provides the economic content of foreign exchange transactions, their classification, features of foreign exchange regulation and foreign exchange control in the Republic of Belarus.

In the second chapter, using the example of the branch of Absolutbank CJSC, an analysis of the conduct of foreign exchange transactions and an analysis of the profitability of foreign exchange transactions are provided, and conclusions based on the results of the analysis are given.

The third chapter of the thesis examines areas for improving the mechanism of foreign exchange transactions and the economic efficiency of using software, and gives specific proposals for improving the conduct of foreign exchange transactions.

The main sources of information for writing the thesis were literary sources of Belarusian and Russian publishing houses on monetary and banking problems, as well as regulatory documents in force in the Republic of Belarus relating to banking activities, practical material provided by the branch of Absolutbank CJSC. Particular attention is paid to the scientific works of S.I. Puplikova, M.A. Konoplitskaya, S.S. Shmarlovskaya, N.P. Belyatsky, E.F. Zhukov, V.N. Kostyuk, I.N. Lemeshevsky.

1. THEORETICAL ASPECTS OF ORGANIZING AND CONDUCTING CURRENCY OPERATIONS IN THE REPUBLIC OF BELARUS

bank commercial operation foreign exchange

1.1 Economic content and principles of organizing foreign exchange transactions

The legislation of the Republic of Belarus in the field of foreign exchange transactions began to take shape in 1992. It should be noted that the legislative framework is undergoing significant changes, therefore Decrees of the President of the Republic of Belarus, Laws and regulatory by-laws are regularly published, which introduce new, clarify or cancel old rules for conducting foreign exchange transactions . The main legislative documents regulating the conduct of foreign exchange transactions, including operations on the domestic foreign exchange market of the Republic of Belarus, at this stage are: Law of the Republic of Belarus “On Currency Regulation and Currency Control” No. 226-3 dated July 22, 2003, Banking Code of the Republic of Belarus, Rules for conducting currency transactions, approved by the Resolution of the Board of the National Bank of the Republic of Belarus dated April 30, 2005 No. 72, Decree of the President of the Republic of Belarus dated July 17, 2006 No. 452 “On the mandatory sale of foreign currency” and other documents.

The modern foreign exchange market is a complex and dynamic economic system that operates within the entire world economy. The foreign exchange market has continuously developed, become more complex and adapted to new conditions, having gone from local centers for trading bills in foreign currencies to virtually the only truly international market, the economic role of which is difficult to overestimate. Along with the development and improvement of the foreign exchange market, foreign exchange transactions were improved, new types of them appeared, and the technology for conducting them was improved.

Banks and non-banking institutions carry out their activities in the foreign exchange market by conducting foreign exchange transactions.

In the foreign exchange market, the national currency is exchanged for the currencies of other countries through purchase and sale. The purchase of foreign currency is necessary both for export-import operations and for operations related to the movement of capital. An efficiently operating foreign exchange market serves domestic and international payment turnover. It is of no small importance for maintaining liquidity during periods of high inflation by insuring risks against possible changes in exchange rates.

The foreign exchange market is a sphere of economic relations manifested in the implementation of transactions for the purchase and sale of foreign currency and securities in foreign currency, as well as transactions for the investment of foreign currency capital.

The main reason for the need for foreign exchange transactions is associated with the lack of a universal means of payment, acting as a single means of payment and allowing for international payments in foreign trade, investing foreign capital in the economy, and making interstate payments. Buying and selling currencies can also be used by both banks and their clients to receive differences in exchange rates.

In order to reveal the essence and content of the concept of “currency transactions”, it is necessary to define the main, key terms of this topic. First of all, it is a currency.

It should be emphasized that this concept can be used in three meanings:

As the monetary unit of a given country (Belarusian ruble, US dollar, Italian lira, Polish zloty, etc.);

As banknotes of foreign countries, credit and payment documents expressed in monetary units and used in international payments - foreign currency;

As an international (regional) monetary unit of account and means of payment (SDR, euro, Arabic dollar).

However, some scientists believe that only an international (regional) monetary unit should be considered a pure currency.

From theoretical and practical points of view, one should distinguish between the concepts of “currency” and “currency values”. The latter include:

Foreign currency;

Payment documents in foreign currency, which are such in accordance with the legislation of the Republic of Belarus;

Securities in foreign currency;

Belarusian rubles when making transactions between residents and non-residents, between non-residents on the territory of the Republic of Belarus, their import and shipment to the Republic of Belarus, export and shipment from the Republic of Belarus, international bank transfers, transactions by non-residents that do not entail the transfer of ownership of Belarusian rubles, according to deposit accounts (deposits) in banks and non-bank financial institutions of the Republic of Belarus;

Securities in Belarusian rubles when making transactions between residents and non-residents, between non-residents on the territory of the Republic of Belarus, their import and shipment to the Republic of Belarus, export and shipment from the Republic of Belarus.

In turn, “foreign currency” includes;

Banknotes in the form of banknotes, treasury notes, coins that are in circulation and are legal tender in the relevant foreign state or group of states, as well as withdrawn or withdrawn from circulation. But subject to exchange;

Funds in monetary units of foreign states and international monetary or settlement units held in accounts in banks and non-bank financial institutions of the Republic of Belarus, banks and other financial institutions outside the Republic of Belarus;

Funds in accounts in foreign monetary units and international monetary or account units.

“Foreign currency securities” include the following:

Securities that are such in accordance with the legislation of the Republic of Belarus, the nominal value of which is expressed in foreign currency;

Securities that are such in accordance with the legislation of the Republic of Belarus, have no par value and are denominated in foreign currency;

Securities issued by non-residents and being such in accordance with the legislation of foreign states, the nominal value of which is expressed in foreign currency;

Securities issued by non-residents and being such in accordance with the laws of foreign states, having no par value and denominated in foreign currency.

Securities denominated in Belarusian rubles include:

Securities that are such in accordance with the legislation of the Republic of Belarus, the nominal value of which is expressed in Belarusian rubles;

Securities that are such in accordance with the legislation of the Republic of Belarus, have no par value and are denominated in Belarusian rubles;

Securities issued by non-residents and being such in accordance with the legislation of foreign states, the nominal value of which is expressed in Belarusian rubles;

Securities issued by non-residents and being such in accordance with the legislation of foreign states, having no par value and denominated in Belarusian rubles.

For a correct understanding of all types of foreign economic activities of business entities, including foreign exchange transactions, the concepts of “resident” and “non-resident” are of particular importance in Belarusian legislation.

Residents mean:

Individuals - citizens of the Republic of Belarus, as well as foreign citizens and stateless persons who have a residence permit (or a substitute document issued by competent legal entities and government bodies of the Republic of Belarus);

Legal entities created in accordance with the legislation of the Republic of Belarus, with their location in the Republic of Belarus;

Branches and representative offices of residents located outside the Republic of Belarus;

Diplomatic and other official missions, consular offices of the Republic of Belarus located outside the Republic of Belarus;

The Republic of Belarus, its administrative-territorial units participating in relations regulated by the legislation of the Republic of Belarus in accordance with the legislation of the Republic of Belarus.

Individuals - foreign citizens and stateless persons, with the exception of foreign persons and stateless persons who have a residence permit (or a substitute document issued by the competent state bodies of the Republic of Belarus);

Branches and representative offices of non-residents located in the Republic of Belarus and abroad;

Foreign states, their administrative-territorial units participating in relations regulated by the legislation of the Republic of Belarus in accordance with the legislation of the Republic of Belarus.

Non-residents:

Individuals - foreign citizens and stateless persons, with the exception of foreign citizens and stateless persons;

Legal entities created in accordance with the legislation of foreign states, with a location outside the Republic of Belarus;

Organizations that are not legal entities, created in accordance with the laws of foreign states, with a location outside the Republic of Belarus;

Diplomatic and other official missions, consular offices of foreign states located in the Republic of Belarus and abroad;

International organizations, their branches and representative offices;

Branches and representative offices of non-residents located in the Republic of Belarus and abroad;

Foreign states, their administrative-territorial units participating in relations regulated by the currency legislation of the Republic of Belarus.

A very important characteristic of a currency is its convertibility, that is, the level of legal currency restrictions when exchanging for other currencies. According to the degree of convertibility, the currency is divided into:

Freely convertible;

Limited convertibility;

Closed;

Clearing.

Freely convertible currency is a currency that can be freely and unrestrictedly exchanged for the currencies of other countries and is used in all types of international payment transactions. Currently, only a few countries have a freely convertible national currency - the United States of America, England, Austria, Canada, Japan, etc.

Limited convertible currency is a currency exchanged for a limited number of foreign currencies and used with restrictions in international payments. The presence of restrictions is due to the instability of the country's economic situation and the imbalance of the balance of payments. Most countries in the world have a limited convertible national currency.

A closed (non-convertible) currency is a currency that is not exchangeable for other foreign currencies and is used only within the country. Closed currencies are those that are subject to restrictions on import, export, purchase, sale and to which various methods of currency regulation are applied.

Clearing currency - settlement currency units that exist only as money of account in the form of accounting records of banking transactions for the mutual supply of goods and provision of services between countries participating in clearing settlements.

The official quotation of the exchange rate of the Belarusian ruble against the US dollar and against the Russian ruble is established by the National Bank of the Republic of Belarus based on the results of trading at the Belarusian Currency and Stock Exchange CJSC.

The ratio of the Belarusian ruble to other foreign currencies, with the exception of the national currencies of the countries participating in the Economic and Monetary Union (EMU), is determined on the basis of the cross rate of the US dollar to these currencies.

Cross rate is a quotation of foreign currencies, none of which is the national currency of the party to the transaction that set the rate. Cross rates of the US dollar to foreign currencies are calculated using information provided by the Central banks of states to the National Bank of the Republic of Belarus, or information from Reuters. Official quotes for the exchange rates of the national currencies of the participating countries of the Economic and Monetary Union to the Belarusian ruble are established on the basis of the official exchange rate of the euro to the Belarusian ruble by recalculation at the conversion rates of each of the national currencies into euros. When carrying out the official quotation of the Belarusian ruble exchange rate, the National Bank of the Republic of Belarus carries out grouping of foreign currencies and division:

For the first group or freely convertible currencies;

The second group or limited convertible currencies.

Each currency has an alphabetic and numerical designation. The official quotation of the Belarusian ruble against foreign currencies is carried out by the National Bank of the Republic of Belarus daily on the day of trading. For certain types of currencies it is carried out only once a month - on the first day of each month based on the results of the latest trading. The list of foreign currencies that can be used in payments by business entities and the service sector of the Republic of Belarus, their classification into groups, alphabetic and digital designations, and the frequency of establishing official quotation is given in Appendix A.

The rates are established without the obligation of the National Bank of the Republic of Belarus to buy or sell the specified currencies at the established official rates.

Most commercial banks conduct transactions with a limited range of foreign currencies. Of the 37 foreign currencies quoted daily by the National Bank of the Republic of Belarus, it is realistically possible to carry out foreign exchange transactions only with no more than 20 currencies, and even then in large commercial banks. Medium and small banks conduct transactions mainly with US dollars, euros and Russian rubles.

Payment for foreign currency can be carried out:

In cash rubles;

In non-cash rubles.

All foreign exchange transactions involving the transfer of funds by bank transfer are carried out only at bank cash desks, with the exception of the purchase of cash foreign currency for non-cash Belarusian rubles, which can be made both at cash desks and at exchange offices.

Currency exchange transactions of purchase, sale, conversion, exchange, exchange, carried out at exchange offices or bank cash desks and related to the receipt from individuals or payment to individuals of cash rubles or cash foreign currency, as well as the issuance of payment documents in foreign currency, are processed documents using cash registers or computer systems.

Thus, having familiarized ourselves with the basic terms related to this topic, let us turn to the Law “On Currency Regulation and Control,” which provides the most complete definition of foreign exchange transactions. So, foreign exchange transactions are considered:

Transactions involving the use of foreign currency, securities in foreign currency, payment documents in foreign currency;

Transactions between residents and non-residents involving the use of Belarusian rubles, securities in Belarusian rubles;

Transactions between non-residents involving the use of Belarusian rubles, securities in Belarusian rubles, carried out on the territory of the Republic of Belarus;

Import and shipment to the Republic of Belarus, as well as export and shipment from the Republic of Belarus of currency values;

International bank transfers;

Transactions of non-residents with Belarusian rubles on accounts and contributions (deposits) in banks and non-bank financial institutions of the Republic of Belarus, which do not entail the transfer of ownership of these Belarusian rubles;

Transactions with foreign currency on accounts and deposits in banks and non-bank financial institutions of the Republic of Belarus, banks and other credit organizations outside the Republic of Belarus, which do not entail a transfer of ownership of this foreign currency.

All currency transactions in the Republic of Belarus are carried out through authorized banks and authorized enterprises of the Republic of Belarus. Authorized banks are considered to be banks and other credit institutions that have received a license from the National Bank of the Republic of Belarus to conduct currency transactions. Authorized enterprises are business entities (except for authorized banks) that have received permission (license) from the National Bank of the Republic of Belarus to conduct currency transactions and operate within the limits of the rights granted by these permissions (licenses).

Licensing of foreign exchange transactions of banks takes place on the basis of the “Rules for issuing licenses to banks for the right to carry out transactions in foreign currency” No. 33 dated March 10, 1993 (as amended and supplemented by letters of the National Bank of the Republic of Belarus).

Licenses for banks, including foreign banks, branches of foreign banks with legal personality and banks with foreign capital, to carry out operations with foreign currency on the territory of the Republic of Belarus and abroad are issued by the national bank of the Republic of Belarus.

Licenses are divided into general, internal and one-time licenses. A general license gives banks the right to carry out a full or limited range of banking operations in foreign currency both on the territory of the Republic of Belarus and abroad. An internal license gives banks the right to carry out a full or limited range of banking operations in foreign currency only on the territory of the Republic of Belarus. A one-time license is the right to conduct a specific transaction in foreign currency on a one-time basis. Banks have the right to apply for additional rights to carry out transactions in foreign currency.

The general license to carry out transactions in foreign currency includes the following:

2. carrying out non-trading operations;

3. carrying out settlements related to export-import operations of bank clients in foreign currency;

4. carrying out, at one’s own expense or on behalf of bank clients of resident legal entities, transactions for the purchase and sale of foreign currency in the form of bilateral transactions, as well as on currency exchanges;

5. carrying out transactions for the purchase and sale of cash foreign currency to individuals;

6. opening and maintaining correspondent accounts of a commercial bank in foreign banks (Nostro accounts), as well as accounts of foreign correspondent banks in a commercial bank (Loro accounts);

7. attraction and placement on the territory of the Republic of Belarus and abroad of funds in foreign currency in the form of loans, deposits, deposits and other forms accepted in international banking practice, issuance of sureties, guarantees and other monetary obligations in favor of third parties;

8. other operations accepted in international practice and not prohibited by current legislation in agreement with the National Bank of the Republic of Belarus.

The domestic license to transact in foreign currency includes the following:

1. opening and maintaining accounts in foreign currency of Belarusian, foreign and international organizations, joint ventures, Belarusian and foreign citizens;

2. carrying out transactions for the purchase and sale of cash foreign currency to individuals;

3. opening and maintaining a correspondent bank account with an authorized resident bank that has a general license of the National Bank of the Republic of Belarus to carry out the following:

3.1. maintaining the bank's foreign exchange position;

3.2. non-trading transactions;

3.3. carrying out settlements related to export-import operations of bank clients in foreign currency;

3.4. Carrying out, at one’s own expense or on behalf of bank clients of resident legal entities, transactions for the purchase and sale of foreign currency in the form of bilateral transactions on the Interbank Currency Exchange.

A bank that has received a general or internal license to carry out transactions in foreign currency is an authorized representative of the National Bank and acts as a currency control agent for the transactions of its clients.

Licenses issued by the National Bank of the Republic of Belarus are not the basis for conducting foreign trade operations of any kind that are not directly related to banking activities.

Banks are required to provide the National Bank of the Republic of Belarus with statistical reporting on their transactions in foreign currency in the forms and within the time limits established by the National Bank of the Republic of Belarus, as well as information on the opening of correspondent accounts in foreign banks. When conducting transactions with foreign currency, banks are guided by national legislation and regulations of the National Bank.

The National Bank of the Republic of Belarus supervises the compliance of the bank's operations permitted by the license and conducts audits and thematic inspections of foreign exchange transactions.

Resident legal entities store their foreign currency in accounts in authorized banks of the Republic of Belarus and in their foreign exchange offices. In cases permitted by the National Bank of the Republic of Belarus, funds of legal entities-residents of the Republic of Belarus may be located in their accounts in foreign banks outside the Republic of Belarus.

To carry out banking operations in Belarusian rubles and foreign currency, the bank must have the following technical capabilities:

Cash units that comply with the regulatory legal acts of the National Bank regulating the organization of cash work in banks, and the current building codes and regulations, as well as state standards of the Republic of Belarus;

Information for clients (board of foreign currency purchase and sale rates, announcements, rules, etc.);

Equipment with counting, computer and organizational equipment;

Necessary strict reporting forms, stamps, seals and seals;

Technical means to determine the authenticity of cash currency;

Information security tools;

Document control system.

The unified procedure for carrying out currency transactions by legal entities, as well as currency transactions with the participation of individuals, is determined by the Rules for conducting currency transactions, approved by Resolution of the Board of the National Bank of the Republic of Belarus dated April 30, 2004 No. 72 and which came into force on July 1, 2004.

Rules No. 72 define a list of cases in which it is possible to use foreign currency, securities in foreign currency and payment documents in foreign currency when conducting foreign exchange transactions between foreign currency transaction entities - residents, as:

Settlements with transport and (or) forwarding organizations for transportation and (or) forwarding of goods to and from outside the Republic of Belarus, outside the Republic of Belarus, during transit through the territory of the Republic of Belarus;

Conducting foreign exchange transactions with banks by organizations;

Payment of taxes, fees (duties) and obligatory payments to the budget (republican, local), state target budget and extra-budgetary funds if the possibility of their payment in foreign currency is provided for by legislative acts, etc.

A list of cases in which it is possible to use foreign currency, securities in foreign currency and (or) payment documents in foreign currency in relations between a subject of foreign exchange transactions and an individual on the territory of the Republic of Belarus is separately defined. Among such cases:

Carrying out retail trade in duty-free stores opened in accordance with the legislation of the Republic of Belarus;

Carrying out retail trade and (or) provision of services on highways numbered “M” and at border crossings (indicating a specific list of goods sold and (or) services provided;

Sales of insurance services;

Sales of tourism services;

Receiving payment under contracts for the transportation of individuals and their luggage by air and rail transport to and from the Republic of Belarus;

Providing services to non-resident individuals for training, internships and advanced training.

To carry out settlements in foreign currency with an individual in the above cases, a resident legal entity must have permission from the National Bank to carry out such transactions for foreign currency. The legislation also provides for the possibility of using foreign currency with the participation of individuals without obtaining permission from the National Bank when:

Carrying out retail trade on board aircraft of Belarusian airlines operating flights to and from outside the Republic of Belarus;

Charging for bedding, watching videos, using mobile communications, excess hand luggage, fines for ticketless travel, charging fares for travel and surcharges for transferring passengers to carriages of the highest category, for trade services in restaurant cars, retail trade of goods by conductors in on trains of the Belarusian Railway traveling to and from the Republic of Belarus;

Carrying out currency transactions between a non-resident and a resident individual, between a resident and a non-resident individual for the provision of loans, repayment of loans and interest for their use;

Conducting foreign exchange transactions with banks by individuals;

Carrying out currency transactions between the subject of currency transactions - a non-resident and an individual - a non-resident;

Payments for legal assistance provided by colleges of lawyers outside the Republic of Belarus to individuals, as well as reimbursement of expenses associated with its provision, and payment of sums of money in foreign currency due to the relevant individuals and credited to the accounts of the said colleges of lawyers;

Donation, donation, in case of cancellation of the donation;

Sale to non-resident individuals of shares of resident legal entities;

Making contributions by an individual to the authorized funds of resident legal entities (including joint stock companies), as well as in the event of the return of these funds upon withdrawal or exclusion of this individual from the membership;

Return of foreign currency, securities in foreign currency in cases of change or termination of contracts, erroneously and (or) excessively transferred (transferred), for transactions that are invalid in accordance with the law;

Payment of taxes, fees (duties) and obligatory payments to the budget (republican, local), state target budget and extra-budgetary funds if the possibility of their payment in foreign currency is provided for by legislative acts;

Collection by the bodies of the Ministry of Foreign Affairs of the Republic of Belarus (including checkpoints on the state border) of consular and other fees;

Acceptance by the subject of currency transactions from individuals of foreign currency to pay diplomatic and other official missions of foreign states consular and other fees for processing documents of these individuals;

Acceptance of foreign currency by diplomatic and other official missions of foreign states;

Depositing by an individual debtor of foreign currency, securities in foreign currency due from him under an agreement into a notary deposit or a court deposit in cases established by law, if the use of foreign currency, securities in foreign currency in relations between an individual debtor and a creditor is provided for legislation, as well as payment from a notary’s deposit or a court deposit to the person to whose address the above-mentioned funds were previously received;

Transfer of the remaining property of a liquidated legal entity after satisfaction of the creditors' claims to the founders (participants) who have proprietary rights to this property or obligatory rights in relation to this legal entity, unless otherwise provided by law or the constituent documents of the legal entity;

Payment to individuals of funds due to them and other persons received to the accounts of a resident currency transaction entity from a non-resident for non-trade transactions;

Payment of funds to individuals involved in currency transactions to pay travel expenses for employees abroad, as well as other expenses incurred by them in foreign currency, if the possibility of payment in foreign currency is provided for by the legislation of the Republic of Belarus;

Conducting non-trading currency transactions between subjects of currency transactions - non-residents and individuals - residents, between subjects of currency transactions - residents and individuals - non-residents;

In other cases, based on the permission of the National Bank and cases established by acts of currency legislation.

To summarize all of the above, it can be noted that the order and efficiency of all foreign exchange transactions is directly related to the development of the national economy. For example, let's take the exchange rate. It is a fairly effective tool for influencing inflationary processes in the economy, which is primarily explained by the stable connection between its dynamics and the formation of inflation expectations of the population and enterprises. In this regard, the main task of monetary policy is to ensure exchange rate stability.

1.2 Classification of foreign exchange transactions

Classification of banking foreign exchange operations can be carried out both according to criteria common to all banking operations (passive, active operations), and according to special classification criteria characteristic only of foreign exchange operations. The fundamental version of the classification of foreign exchange transactions follows from the Law of the Republic of Belarus No. 226-3 dated July 22, 2003 “On Currency Regulation and Currency Control” as amended July 12, 2013 No. 51-Z. According to this Law, foreign exchange transactions carried out between residents and non-residents are divided into current foreign exchange transactions and foreign exchange transactions related to the movement of capital.

Current foreign exchange transactions are foreign exchange transactions carried out between residents and non-residents and providing for:

Carrying out settlements for transactions involving the export and (or) import of goods (work, services), protected information, exclusive rights to the results of intellectual activity, if the period between the date of receipt of funds (payment) and the date of shipment (receipt) of the goods (performance of work, provision of services), transfer of protected information, exclusive rights to the results of intellectual activity does not exceed 180 days, including the implementation of such settlements using securities that perform the functions of settlement documents, if the payment period for the security ensures the receipt (payment) of funds on time, not exceeding 180 days from (until) the date of shipment (receipt) of goods (performance of work, provision of services), transfer of protected information, exclusive rights to the results of intellectual activity;

Providing and receiving credits and (or) loans for a period not exceeding 180 days;

Transfer and receipt of interest, dividends and other income on deposits, investments, borrowing and credit operations;

Non-trading transactions.

Basic principles for conducting current foreign exchange transactions:

Current currency transactions are carried out only through the accounts of authorized banks of the Republic of Belarus and authorized enterprises;

Business entities of the Republic of Belarus, including entrepreneurs without the right to form a legal entity, are required to store foreign currency in authorized banks of the Republic of Belarus or in their current, special, current, deposit, and other accounts in authorized banks of the Republic of Belarus;

Settlements in foreign currency are carried out by resident business entities within the limits of the credit balance on the current foreign exchange account or within the limits of the funds at their disposal, for example, within the limit of an open credit line;

If the terms of foreign economic contracts between a resident and a non-resident do not contradict the rules for conducting foreign exchange transactions, foreign currency is transferred in favor of the non-resident in accordance with the terms of the “Payment” section of the contract in the presence of such commercial documents as bills of lading, invoices, invoices;

Payment of funds in national currency, provision of services and sale of inventory items in the Republic of Belarus with subsequent receipt of hard currency or hard currency abroad is not permitted;

Authorized banks and authorized enterprises perform the function of an agent of the state for currency control and have the right to refuse the subject of a currency transaction to carry it out if it contradicts the norms of currency regulation;

All settlements between residents and non-residents are carried out in freely convertible currency and other foreign currencies, if this is provided for by intergovernmental agreements and agreements between the Central banks of states;

In relations between residents, the currency of the Republic of Belarus is accepted without restrictions in payment of any claims and obligations expressed in it, and can also be accepted in payment of claims and obligations expressed in foreign currency.

Foreign exchange transactions related to the movement of capital are the following foreign exchange transactions carried out between residents and non-residents:

Acquisition of shares during their distribution among the founders, as well as shares in the authorized capital or a share in the property of non-residents;

Acquisition of securities issued by residents or non-residents, with the exception of the acquisition of shares when they are distributed among the founders;

Transfers for settlements under obligations involving the transfer of property classified by the legislation of the Republic of Belarus as real estate, or rights to it;

Settlements for transactions involving the export and (or) import of goods (work, services), protected information, exclusive rights to the results of intellectual activity, if the period between the date of receipt of funds (payment) and the date of shipment (receipt) of the goods (performance of work, provision of services), transfer of protected information, exclusive rights to the results of intellectual activity exceeds 180 days, including the implementation of such settlements using securities that perform the functions of settlement documents, if the payment period for the security ensures the receipt (payment) of funds within a period exceeding 180 days from (until) the date of shipment (receipt) of goods (performance of work, provision of services), transfer of protected information, exclusive rights to the results of intellectual activity;

Providing and receiving loans and (or) loans for a period exceeding 180 days;

Other currency transactions not classified as current currency transactions.

The fundamental principle of organizing foreign exchange transactions related to the movement of capital can be defined as follows: everything that is not permitted is prohibited.

Non-trading operations are a type of bank's foreign exchange operations. These include customer service operations not related to settlements for export-import transactions and capital movements. If they have a license to conduct foreign exchange transactions, banks can conduct the following types of non-trading transactions:

Purchase and sale of foreign currency;

Acceptance of foreign currency for collection;

Acceptance of checks from foreign banks for collection;

Collection of proceeds in cash foreign currency;

Purchase and sale of traveler's checks;

Sale of commercial checks;

Operations for the issuance and sale of plastic cards in foreign currency;

Other transactions with cash foreign currency.

Currency exchange transactions involving individuals are the main of all non-trade transactions. They are carried out by commercial banks at the bank's cash desks (foreign exchange office) and at exchange offices.

According to Article 14 of the Banking Code of the Republic of Belarus, foreign exchange transactions represent one of the types of banking operations that banks and non-bank financial institutions have the right to carry out. By their legal nature, currency exchange transactions are more related to currency legislation than to banking legislation, representing a banking operation associated with the transfer of ownership and other rights to currency values. The subject of foreign exchange transactions, along with the official monetary unit of the Republic of Belarus, is foreign currency, which is covered by the concept of “currency values”.

Transactions on the exchange of foreign currency for the official monetary unit of the Republic of Belarus and (or) the exchange of the official monetary unit of the Republic of Belarus for foreign currency at established exchange rates (purchase and sale of foreign currency);

Transactions involving the exchange of one type of foreign currency for another type of foreign currency at established exchange rates (foreign currency conversion):

Other operations determined by the National Bank.

According to Article 14 of the Code, the right to carry out foreign exchange transactions belongs exclusively to banks and non-bank financial institutions (hereinafter referred to as authorized banks). The term “authorized bank” used in the context of the article also includes the central office of the National Bank, the Main Directorates and branches of the National Bank.

The purchase and sale of foreign currency is carried out at rates set by banks, which are constantly monitored by them and brought into line with market developments. The rate of purchase of foreign currency and payment documents in foreign currency with payment in Belarusian rubles, the rate of sale of foreign currency and payment documents in foreign currency with payment in Belarusian rubles, the conversion rate of foreign currency are established and issued by order (instruction) at the bank before the start of the working day of the exchange point or cash register. During business hours, banks may change the established exchange rates. The establishment or change of exchange rates is recorded in a special journal for establishing exchange rates. This journal must be laced, numbered, sealed and certified by an authorized person of the commercial bank. The cashier records information about the exchange rates received in the exchange rate journal.

Prices for cash currency can be indicated both per unit of currency (US dollar, euro), and for every 10 units of foreign currency (Japanese yen), for every 100 units of foreign currency (Romanian leu, Iranian real, Mongolian tugrik, Lebanese pound), as well as for 10,000 units of foreign currency (Turkish lira).

In world practice, there are two types of quotes: direct and indirect.

In most countries, foreign exchange rates are expressed in national currency, that is, they indicate how much a unit of foreign currency will cost in national currency. This form of price indication is called direct quotation.

Example of a direct quote (conditional data):

In the Republic of Belarus, 1 US dollar costs 9940 rubles;

The opposite is the concept of indirect quotation. In this case, it is not the price per unit of foreign currency that is indicated, but the foreign equivalent per unit of national currency. A similar system is used in a small number of countries, in particular in England.

Example of indirect quotation: in London, 1.7 US dollars will be quoted to one pound sterling.

When clients purchase foreign currency in cash through banks, the lower purchase price (buyer's rate) is taken as the basis; when selling, a higher price (seller's rate) is taken as the basis. To cover the costs of servicing operations and make a profit, there is a difference between these rates, called margin. As a rule, the difference between the purchase and sale prices of cash currency is higher than the difference between the purchase and sale rates of non-cash currency. Since the costs associated with transactions with cash foreign currency are also much higher (transporting money, purchasing devices for checking banknotes for authenticity - catalogs of distinctive features, a detector for the presence of magnetic additives in dyes, an ultraviolet lamp, a magnifying glass, etc.).

When buying and selling payment documents in foreign currency (these are traveller's checks, bank checks or other checks denominated in foreign currency, issued by banks and other credit institutions, as well as Tax-free checks), banks may charge a commission in Belarusian rubles. Recently, banks of the Republic of Belarus have not provided commissions for the purchase and sale of foreign currency.

Operations of purchase and sale of foreign currency by banks are carried out only with those currencies for which exchange rates have been established.

Currently, current foreign exchange transactions have acquired wider significance. In this case, deferred payment is provided for a minimum period. The limited range of foreign exchange transactions related to the movement of capital is justified by the greater risks involved in their implementation, as well as more complex registration (obtaining permission from the National Bank for these transactions).

Thus, the range of services provided by banks for foreign currency transactions is wide and expanding every year. Banks quickly respond to changes in demand for certain types of services, which is especially important in the competition of commercial banks to attract clientele. Without such operations as the purchase and sale of cash foreign currency with the participation of individuals, the implementation of transfers abroad, the purchase and sale of traveler's checks, the issuance of cash foreign currency for travel expenses to corporate clients, the daily work of any bank with clients is practically impossible.

2. ANALYSIS OF CURRENCY OPERATIONS ON THE EXAMPLE OF ABSOLUTEBANK CJSC

2.1 Analysis of foreign exchange transactions of Absolutbank CJSC

An analysis of foreign exchange transactions of Absolutbank CJSC was carried out for 2011, 2012 and 2013. The volumes of purchase and sale of foreign currency by currency for 3 years are presented in Table 2.1.

Table 2.1 - Volumes of foreign currency purchased and sold by Absolutbank CJSC for 3 years

It is necessary to briefly consider the breakdown of income items attributed to certain types of transactions. Income from foreign currency accounts clients include commissions for issuing transaction passports, as well as a commission for cashing out foreign currency (since maintaining a clients’ foreign currency account consists of commissions for each transaction, which relate to different types of foreign exchange transactions). This constitutes the main income from this operation. To income from placement of funds include: interest on loans issued (short-term, long-term), deposits placed; placement of funds in foreign currency securities and income from them. To income from international payments include: commission for transfers, collection of payment documents in foreign currency, opening and issuance of letters of credit. Income from conversion operations includes:

Income from an open currency position;

Income from operations on the MICEX on futures and forward contracts.

To income from non-trading operations include: commission charged to clients for servicing plastic cards, income from the purchase and sale of cash foreign currency.

However, it is possible to evaluate the bank’s foreign exchange transactions not only from the point of view of income and expenses, but also to analyze the structure of the bank’s personnel, as well as to carry out relative timing of the work process, and take into account how the payroll fund is distributed across the main departments. If the table for analyzing the profitability of foreign exchange transactions is correlated with the turnover for these types of operations, and all analytical calculations are grouped for clarity into one table and the final results are expressed as a percentage, then the following table will be obtained, which clearly expresses the value for the bank of the main foreign exchange transactions (Table 2.3 .3).

All calculations are based on data from the Federal Depository

bank for the first quarter of 1998. For 100% in table. 2.3.3 takes the profitable work of the foreign exchange department in the first quarter of 1998. From here it is necessary to explain that this structure of foreign exchange operations is still individual in percentage terms for a given bank. Although the general trend in the importance of the above types of foreign exchange transactions, the structure of foreign exchange transactions remains the same in all banks. That is The main operations in terms of profitability, labor intensity, and total costs are:

1) attracting and placing funds that the bank has at its disposal in a given period;

2) conversion operations;

3) non-trading operations.

2.4. Currency risks and methods of their regulation

Currency risk, or exchange rate risk, associated with the internationalization of the banking market, the creation of transnational (joint) ventures and banking institutions and the diversification of their activities and represents the possibility of monetary losses as a result of exchange rate fluctuations.

International banking covers:

currency operations;

foreign lending;

investment activities;

international payments;

international payments;

foreign trade financing;

insurance of currency and credit risks;

international guarantees.

Foreign exchange markets exist to service financial transactions between countries that need to settle trade transactions.

Its participants are market makers, banks, industrial and insurance companies, investment funds, private clients, central banks, and brokers. Market makers quote exchange rates for all other market participants on a regular basis. Banks quote currencies for their clients, but not for other banks. Industrial, insurance companies, investment funds carry out their own foreign exchange transactions and hedging operations through the above-mentioned counterparties. Private clients diversify their investments into different currencies to minimize risks and maximize returns. Central banks are involved in foreign exchange regulation, supervision and foreign exchange intervention. Brokers are engaged in intermediary activities between banks, both national and foreign.

THE CURRENCY MARKET is not only a relationship between banks and their clients. The main characteristic feature of the foreign exchange market is that on it monetary units confront each other only in the form of entries in correspondent accounts. The foreign exchange market is predominantly an interbank market, since it is during interbank transactions that the exchange rate is directly formed. Operations are carried out using various means of communication and communication.

Functions of the foreign exchange market:

Servicing the international circulation of goods, services and capital;

Formation of the exchange rate under the influence of supply and demand;

Mechanism for protection against currency risks and the application of speculative capital;

An instrument of the state for monetary and economic policy purposes.

To serve the foreign exchange market, the concept is introduced exchange rate- the value of one currency expressed in a certain amount of another. To express it accurately, direct and indirect quotes are used.

At direct quotation the variable number of units of national currency expresses the value of foreign currency.

Example: Switzerland: 100 DEM = 85.20 CHF

1 USD == 1.4750 CHF.

At indirect quotation the variable number of foreign currency units expresses the value of the national currency:

Example: UK: IGBP = 1.4900 USD

1 GBP = 2.5600 DEM.

In this case, the transaction currency is always foreign currency, and the estimated currency is the country’s currency.

Currency quotation for commercial and industrial clients who are interested in the quotation of foreign currencies in relation to the national one is based on the cross rate. Cross course- a relationship between two currencies that results in relation to a third currency (usually the US dollar).

Conversion transactions are associated with the emergence of currency risk, which can lead banks to both additional income and losses.

For its part, currency risks are structured as follows: commercial, conversion, translation, forfeiting risks (Fig. 2.4.1 and Fig. 2.4.2).

Commercial risks are associated with the reluctance or inability of the debtor (guarantor) to pay off his obligations.

Conversion risks- these are the risks of currency losses for specific transactions. These risks are in turn divided into: economic risk, translation risk, transaction risk.

Economic risk for a firm is that the value of its assets and liabilities may change up or down (in national currency) due to future changes in the exchange rate.

For a bank, investing in foreign assets will affect the size of the future flow of payments denominated in domestic currency. In addition, the very size of payments to be repaid on these loans will change when converting the value of the foreign currency of the loan into the equivalent in national currency.

Translation risk is associated with differences in the accounting of assets and liabilities in foreign currency. If the currency in which these assets are denominated falls, the value of the assets falls: as the value of assets decreases, the size of the share capital of the company or bank decreases. More important from an economic point of view is transaction risk, which considers the impact of changes in exchange rates on the future flow of payments, and therefore on the future profitability of the firm or bank.

Transaction risk arises from the uncertainty of the local currency value of a foreign exchange transaction in the future. Changes and profitability of a firm mean a change in its creditworthiness and therefore it is very important for the bank to be aware of the clients' foreign exchange transactions. In an environment of high instability of exchange rates, one of the ways to protect against currency risks is to choose the contract currency that is most acceptable to counterparties. For the exporter and lender, it is preferable to use a relatively more stable currency. The choice of currency can have a significant impact on the efficiency of trading and credit operations.

When choosing a contract currency, the following factors must be taken into account: forecast of trends in the exchange rate of a given currency in the period between the moment of conclusion of the contract and the timing of payment obligations; the nature of the goods and services sold; traditions established in the commodity market; form of trade organization (one-time transaction, long-term contract, intergovernmental agreement).

Currency conversion risk can be reduced by also applying protective clauses, gold clauses, and currency clauses.

Protective clauses- contractual terms included by agreement of the parties in interstate economic agreements, providing for the possibility of changing or revising the original terms of the contract in the process of its execution.

Golden clause acquired importance during and after the First World War in connection with the abolition of the gold standard in some countries and its virtual disappearance in others. The currencies of these countries began to depreciate both in relation to gold and in relation to the currencies of other countries in which the gold standard continued to function. The reservations were based on the gold parity of currencies, which is the ratio of their gold content. Reservations based on parity were valid both in conditions of free exchange of monetary units for gold, and under reduced (gold - motto and gold - dollar) standards. Gold clauses were widely used as long as the governments of capitalist countries took measures to maintain the market price of gold at the official level. The collapse of the gold pool in 1868 created a double market for gold, making the official price of gold unrealistic and ending the use of the gold clause.

Currency clause- this is the inclusion in a credit or commercial contract of a contractual condition, according to which the amount of payment of the contractual condition is made dependent on changes in the exchange rate

the relationship between the currency of the price of the product (loan currency) and another, more stable currency (reservations). The establishment of different currencies of price and payment in a contract is in fact the simplest form of a currency clause. In this case, the price currency is chosen to be a more stable currency. In the case of a regular currency clause, the amount to be paid is made dependent on the change in the exchange rate of the currency of the clause in relation to the currency of the price. In both cases, the payment amount will change to the same extent as the exchange rate of the reservation currency. For example, the price of goods under the contract is 1 million francs. francs The currency of the reservation is the US dollar. The dollar to franc exchange rate on the date of conclusion of the contract is 10.00 francs, then the amount to be paid will have to increase by 10% and amount to 1.1 million francs, i.e. per 100 thousand francs. more. A currency clause based on a market rate provides for determining the relationship between currencies based on the current quote on the foreign exchange markets. The difference between the seller's and buyer's rates is margin- is a source of income for the bank, through which it covers the costs of the transaction and, to a certain extent, serves to insure currency risk.

For example:

1. New York to London (direct quote);

1 f.st. - $1.6427 - buyer's rate

1 f.st. - $1.6437 - seller's rate.

A bank in New York seeks to sell pounds sterling after receiving

this is more than the national currency (1.6437), and when buying them, you pay less (1.6427).

2. New York at Frankfurt am Main (indirect quotation);

1 dollar - 1.7973 DM - seller's rate

1 dollar - 1.7983 DM - buyer's rate.

A bank in New York, selling stamps, wants to pay fewer stamps for each dollar (1.7973) and receive more stamps upon purchase (1.7983). However, since the exchange rates of individual currencies often experience acute short-term fluctuations, tying the currency clause to any one currency cannot satisfactorily ensure the interests of both exporters and importers. These shortcomings were overcome with the development multi-currency clause, which provides for the recalculation of a monetary liability depending on changes in the exchange rate

the relationship between the payment currency and the basket of currencies selected by agreement of the parties.

The use of a weighted average exchange rate of the payment currency in relation to a set of other currencies reduces the likelihood of sudden changes in payment amounts. Including currencies with different degrees of stability in the basket helps to ensure the interests of both counterparties. The compilation of the basket should be based on an analysis of the past dynamics of the exchange rates of the relevant currencies, their current state and prospects for the period coinciding with the term of the contract. In addition to multi-currency security clauses, there are a number of clauses that are similar to them in their economic content. Thus, an action similar to a multi-currency clause with a corresponding basket of currencies will have concluding an export contract with the condition of payment in several currencies of an agreed set. For example, maybe The contract amount was agreed to be 60% in US dollars and 40% in German marks.

Broadcast(accounting) risks arise when revaluing assets and liabilities of balance sheets and the “Profit and Loss” account of foreign branches of clients and counterparties. These risks, in turn, depend on the choice of conversion currency, its stability and a number of other factors (see Fig. 17.2). Recalculation can be carried out using the translation method (at the current rate on the date of recalculation) or using the historical method (at the rate on the date of a specific transaction). Some banks take into account all current transactions at the current rate, and long-term ones at the historical rate; others analyze the level of risk of financial transactions at the current exchange rate, and others at the historical rate; still others choose one of two accounting methods and use it to control the entire range of their risky transactions.

Strategically, protection against currency risk is closely is associated with an active pricing policy, types and costs of insurance, the degree of reliability of insurance companies of both the bank itself and its counterparties and clients.

In addition, almost all large banks are trying to form portfolio of its foreign exchange transactions, balancing assets and liabilities by type of currency and maturity. Basically everything external methods Currency risk management is focused on their diversification. For this purpose, the most widely used are forward currency transactions such as forwards, futures, options(both on interbank markets and on exchanges). Currency is sold on a spot basis (with immediate or two-day settlement), swap (spot/forward, spot between different banks) or forward (outright between the bank and the client).

Risks of forfeiting arise when the forfeiter (often a bank) assumes all the risks of the exporter without recourse. But at the same time forfeiting(commercial risk refinancing method) has its advantages, with the help of which the level of risk can be reduced by:

Simplification of balance sheet relationships of possible liabilities;

Improving (at least temporarily) the liquidity situation, which makes it possible to further strengthen financial stability;

Reducing the likelihood and possibility of losses by insuring possible difficulties that almost inevitably arise during the period of presentation of previously insured claims;

Reduction or even absence of risks associated with fluctuations in interest rates;

A sharp reduction in the level of risks associated with exchange rate fluctuations and changes in the financial stability of the debtor;

Absence of risks and costs associated with the activities of credit

authorities for collecting money on bills of exchange and other payment documents.

But, naturally, forfeiting cannot be used always and everywhere. This is one way to reduce risks.

Currently, the Central Bank of the Russian Federation regularly publishes the so-called "currency basket"- a method of measuring the weighted average exchange rate of the ruble against a certain set of other currencies.

The most common methods of insuring currency risks are

hedging, those. creation of a compensating currency position for each risky transaction. In other words, compensation occurs

one currency risk - profit or loss - another corresponding risk;

currency swap, which has two varieties. The first is reminiscent of parallel loans, when two parties in two different countries provide loans of different sizes with the same terms and methods of repayment, but denominated in different currencies. The second option is simply an agreement between two banks to buy or sell currency at the spot rate and reverse the transaction at a predetermined date (in the future) at a certain spot rate. Unlike parallel loans, swaps do not include interest payments;

mutual offset of risks on assets and liabilities, the so-called “matching” method, where by subtracting currency receipts from the value

its outflow, the bank management has the opportunity to influence their size.

Other transnational (joint) banks (SBs) use the netting method(netting), which is expressed in the maximum reduction of foreign exchange transactions through their consolidation. For this purpose, coordination

The activities of all divisions of a banking institution must be at a high level.

Hedging involves the creation of counterclaims and obligations in foreign currency. Most common type hedging - concluding forward currency transactions. For example, an English trading firm expecting a US dollar receipt in 6 months' time would hedge by selling those future receipts into pounds sterling at the 6-month forward rate. By entering into a forward foreign exchange transaction, a firm creates US dollar liabilities to balance its existing dollar claims. If the dollar exchange rate declines against the pound sterling, losses on the trading contract will be compensated by profits on the forward currency transaction.

The basis for spot transactions, which have an exceptional impact on the currency position, are correspondent relationships between banks. Spot foreign exchange transactions account for approximately 90% of all foreign exchange transactions. The main goals of their implementation are:

Meeting the needs of bank clients in foreign currency;

Transfer of funds from one currency to another;

Carrying out speculative operations.

Banks use spot transactions to maintain minimum required working balances with foreign banks in Nostro accounts to reduce surpluses in one currency and cover requirements for another currency. With this, banks regulate their foreign exchange position in order to avoid the formation of uncovered account balances. Despite the short delivery time of foreign currency, counterparties bear the currency risk for this transaction, since under the conditions of “floating” exchange rates the rate can change within two business days. Conducting foreign exchange transactions and minimizing risks requires certain preparation. At the preparatory stage, an analysis of the state of foreign exchange markets is carried out, trends in the movement of exchange rates of various currencies are identified, and the reasons for their changes are studied. Based on this information, dealers, taking into account their existing currency position, use computer technology to determine the average exchange rate of the national currency against foreign currency. The analysis carried out makes it possible to develop the direction of foreign exchange transactions, i.e. secure a long or short position in the specific currency in which they transact. It should be noted that in large banks, special groups of economists and analysts analyze the position of currencies in the markets, and dealers, based on their information, independently choose the direction of conducting foreign exchange transactions. In smaller banks, the analyst functions are performed by the dealers themselves; They directly carry out currency transactions: using communication means (telephone, telex) they negotiate the purchase and sale of currencies and conclude transactions. The procedure for concluding a transaction includes: selection of exchanged currencies; fixation of rates; establishing the transaction amount;

value transfer of funds; indication of the currency delivery address.

At the final stage, the transaction is carried out on the accounts and its documentary confirmation.

During transactions "spot" The day on which settlements for a particular currency transaction are completed is called the “value date” and is used as protection against risk. International payments cannot be made on a Sunday, holiday or non-working day. That is, calculations must be made on a working day in both countries (Table 17.10).

In Russian banks, the open currency position is determined separately for each foreign currency. For this purpose, the currency positions of the authorized bank are translated into the ruble equivalent at the official ruble exchange rates in effect on the reporting date, which are established by the Central Bank of the Russian Federation. The passive balance is indicated with a minus sign, indicating a short open currency position; The active balance is indicated with a plus sign, indicating a long open currency position. Moreover, in the case of the formation of the authorized bank’s authorized capital in foreign currency, when calculating the open currency position for a given foreign currency, the amount of the passive balance increases by the corresponding amount.

To calculate an open currency position in rubles, the difference between the absolute value of the sum of all long open currency positions in rubles and the absolute value of the sum of all short open currency positions in rubles is determined.

The total value of all long and the total value of all short open currency positions in foreign currencies and rubles must be equal.

In order to limit the currency risk of authorized banks TSB RF The following limits of open currency positions are established:

At the end of each operating day, the total value of all long (short) open currency positions should not exceed 30% of the authorized bank’s own funds (capital);

At the end of each operating day, long (short) open currency positions in certain foreign currencies and Russian rubles should not exceed 15% of the authorized bank’s own funds (capital).

Authorized banks with branches independently set sublimits for open currency positions of the head bank and branches. At the same time, the share distribution of sublimits is carried out by them within the limits provided for by the authorized bank. At the end of each operating day, open currency [positions separately for the head bank and branches of the authorized bank must not exceed the sublimits established by it during the share distribution, and in a consolidated form must be within the limits established as a whole for the authorized bank. Redistribution by the authorized bank sublimits on open; currency positions of its head bank and branches can be made by the authorized bank at the beginning of each reporting month.

Financial instruments as a method of insurance

currency risks

Methods of insuring currency risks are financial transactions that allow either to completely or partially avoid the risk of losses arising in connection with an expected change in the exchange rate, or to obtain speculative profit based on on such a change.

Methods of insuring currency risks include:

Structural balancing (assets and liabilities, accounts payable and receivable);

Changing the payment term;

Forward transactions;

Operations such as "swap";

Financial futures;

Lending and investing in foreign currency;

Restructuring of foreign currency debt;

Parallel loans;

Discounting claims in foreign currency;

"currency baskets";

Making payments by branches in a “growing” currency;

Self-insurance.

It should be borne in mind that the methods are: changing the payment term; forward transactions; "swap" type operations; option transactions; Financial futures and discounting of claims in foreign currency are used for short-term hedging, while methods of lending and investing in foreign currency; restructuring of foreign currency debt; parallel loans; making payments to branches in a “growing” currency; self-insurance are used for long-term risk insurance. Methods of structural balancing (assets and liabilities, accounts payable and receivable) and "currency baskets" can be successfully used in all cases. It should be noted that the methods of parallel loans and making payments by branches in a "growing" currency are, in principle, available only to those companies or banks who have

foreign branches. Some of these methods are difficult to apply.

The essence of the main hedging methods is to carry out foreign exchange transactions before an unfavorable change in the exchange rate occurs, or to compensate for losses from such a change through parallel transactions with a currency whose rate changes in the opposite direction.

Structural balancing is the desire to maintain a structure of assets and liabilities that will allow losses from changes in the exchange rate to be covered by profits received from the same changes in other balance sheet items. In other words, such tactics boil down to the desire to have the maximum possible number of “closed” positions, thus minimizing currency risks. But since it is not always possible or reasonable to have all positions “closed,” you should be prepared for immediate structural balancing actions. For example, if a company or bank expects significant changes in exchange rates as a result of ruble devaluation, then it should immediately convert available cash into the payment currency. In relation to the ruble, this, naturally, can be done only if there is such a right (expressed by entries in an off-balance sheet account or in some other way) or after the creation of a domestic foreign exchange market. If we talk about the relationship between various foreign currencies, then in such a situation, in addition to conversion and a falling currency into a more reliable one, it is possible to carry out, say, the replacement of securities denominated in a “sick” currency with more reliable stock values.

One of the simplest and at the same time most common balancing methods is reconciliation of currency flows reflecting income and expenses. In other words, every time concluding a contract providing for the receipt or, conversely, payment of foreign currency, an enterprise or bank should strive to choose the currency that will help it close, in whole or in part, the existing “open” currency positions.

Change payment deadline, usually called the “leads and lags” tactic, is the manipulation of the timing of settlements, used in anticipation of sharp changes in the exchange rates of the price or payment currency. The most commonly used forms of such tactics include: early payment for goods and services (in case of expected depreciation, i.e., depreciation); acceleration or deceleration of repatriation of profits, repayment of loan principal and payment of interest and dividends; regulation by the recipient of foreign currency funds of the timing of conversion of proceeds into national currency, etc. The use of this tactic allows you to close short positions in foreign currency before the exchange rate rises and, accordingly, long positions before it falls. The possibility of using such a method, however, is largely determined by the financial conditions of foreign trade contracts. In other words, contracts should provide in advance for the possibility of early payment and clearly stipulate the amount of penalties for timely payment. In the latter case, a delay in payment due to an expected change in the exchange rate will be justified only if the savings resulting from payment at the new rate exceed the amount of the accrued penalty.

Since 1975, banks have been used in mainly new methods for regulating currency risks. For this purpose, three new instruments were created: swaps, derivatives contracts for financial instruments (forwards and futures) and options, which we will consider in detail.

Forward operations to insure currency risks are used to avoid risks in foreign currency purchase and sale transactions. A forward foreign exchange contract is an irrevocable and binding contract between a bank and its client to buy or sell a specified quantity of a specified foreign currency at an exchange rate fixed at the time the contract is entered into, for execution (i.e. delivery of the currency and its payment) at a future time, specified in the contract. This time represents a specific date, or a period between two specific dates.

An English exporter issues an invoice under a foreign trade contract, which provides for payment 6 months after shipment of the goods. Moreover, if the exporter does not enter into a forward contract, he receives the currency within the period specified in the spot contract and sells the currency to his bank at the current spot price against GBP. However, the spot has changed since the conclusion of the contract and now, depending on the market situation, the exporter will receive more or less in exchange for foreign currency. Therefore, the exporter bears currency risk. But, if the exporter enters into a forward contract, then the bank agrees to buy foreign currency from the exporter for GBP in 6 months. The bank agrees to do this at a fixed rate, so there is no risk for the exporter and he sells the currency to his bank at the current forward rate against GBP. So, for example, in a spot operation, the amount of coverage for 180 days at the spot rate is 1.7400, and taking into account the premium on the forward contract (premium for 180 days 171 points -0.0171) at the forward rate - 1.7571, provided that The forward rate is higher than the spot rate.

Features of forward transactions include:

The existence of a time interval between the moment of conclusion and execution of the transaction;

The exchange rate is determined at the time the transaction is concluded. Exchange quotation bulletins publish the rate for spot transactions and premiums or discounts to determine the rate for forward transactions for different periods, usually 1, 3 or 6 months. If a currency in a forward transaction is quoted at a higher price than for immediate delivery on spot terms, then it is quoted at a premium. A discount or discount means the opposite. A fixed-term rate that takes into account a premium or discount is called an outright rate. With a premium, the currency is for a period more expensive than the cash rate, with a discount it is cheaper. Having the value of the premium and discount, the outright rate is calculated.

A forward foreign exchange contract can be either fixed or optional.

Fixed forward foreign exchange outright contract is a contract that must be performed on a specific date in the future. For example, a two-month forward fixed contract entered into on September 1st must be executed on November 1st, i.e. after two months.

In accordance with by letter of the Central Bank of the Russian Federation dated December 23, 1996 No. 382 a settlement forward is defined as a combination of two transactions - the purchase and sale of foreign currency for a period with a pre-fixed rate and the simultaneous acceptance of an obligation to sell and buy the same amount of foreign currency on the date of execution of the forward transaction at a rate that is subject to determination in a future period (for example, it will be fixed on the MICEX on a predetermined day). These contracts do not actually involve the conduct of foreign exchange transactions, since their conclusion does not initially involve the delivery of the underlying foreign currency asset. Settlements under these contracts are carried out exclusively in rubles in an amount that represents the difference between the value of the underlying currency asset at the initially fixed rate and its value at the rate determined in the future period. However, due to the fact that by concluding such contracts, banks assume exchange rate risks, these contracts are taken into account when calculating the open currency position. According to letter of the Central Bank of the Russian Federation dated December 23, 1996 No. 382 An open currency position at the time of concluding a contract is created by a forward transaction for the purchase and sale of foreign currency with a fixed rate. The forward transaction is accounted for in off-balance sheet accounts in accordance with Instructions of the Central Bank of the Russian Federation dated June 10, 1996 No. 290. At the same time, the obligation for a counter transaction on the date of conclusion of the derivatives contract does not have independent significance from the standpoint of determining the open currency position of the counterparties. Its functional role in a settlement forward is reduced to the formation of a mechanism for playing on exchange rate fluctuations, which is, in essence, a settlement forward. At the same time, when executed, the counter transaction affects the size of the open currency position, like any conversion operation.

The exchange rate for futures transactions differs from the corresponding rate for cash transactions. When the rate for a futures transaction is higher than the cash currency rate, the corresponding premium to the cash rate is called a bonus. If the rate for a futures transaction is lower, then the discount from the cash rate is called discount.

The option forward contract, at the client's option, can be

done either:

At any time, from the date of conclusion of the contract to the specific date of its implementation;

During the period between two specific dates.

The purpose of an options contract is to avoid the need to renew a forward foreign exchange contract and extend it over several days, as this can be quite expensive in terms of costs per day.

A currency option gives the buyer the right (not the obligation) to buy

or sell: at a certain, pre-agreed date in the future, a certain amount of currency in exchange for another. An option can be compared to insurance - it is used only in unfavorable circumstances.

Unlike a forward transaction, an option is used to protect against high-cost risks with an imprecise basis for calculation of a standard amount, value date, up to 2 years for major currencies only.

Depending on which of the participants and how has the right to change the terms of the transaction, there are: a buyer's option or a transaction with a preliminary premium, a seller's option or a transaction with a reverse premium, a temporary option.

In the case of a call option or a premium transaction, the option holder has the right to receive the currency on a specified date By stipulated rate. The buyer reserves the right to refuse to accept currency by paying the seller a premium for this as compensation. In a put option or reverse premium transaction, the option holder can deliver the currency on a specified date at a specified rate. The right to refuse the transaction belongs to the seller, and he pays a premium to the buyer as compensation.

Variety option transactions is a time option, which historically was preceded by a rack transaction with the purpose of simultaneously conducting speculative transactions in anticipation of an increase and decrease in the exchange rate of a currency. Such an option provided by the bank to the client is an option (from English - the right or subject of choice) in relation to the period of time when the currency exhibition will be carried out, and such a transaction must be executed before the agreed date. For this operation, the premium payer has the right to demand execution of the transaction at any time during the option period at a previously fixed rate. Thus, the participant in the transaction pays a premium for the right to choose the most favorable current exchange rate for the conversion of the currency received as a result of the option transaction. In this case, the premium does not play the role of compensation, since during the option period it is impossible to refuse to execute the transaction. When executing a transaction, counterparties specify which of them will act as a seller and which will act as a buyer. Then one of them, having paid a premium to the other, either buys the currency or sells it. This transaction is more profitable for the participants, the greater the fluctuations in the exchange rate.

So, currency option are not the same thing as forward foreign exchange option contracts. Unlike a forward foreign exchange contract, an option does not have to be exercised. Instead, when the currency option's exercise date arrives, the owner can either exercise the right to exercise the option or allow it to expire by avoiding the transaction, i.e. simply by refusing the option.

In accordance with Instruction of the Central Bank of the Russian Federation dated May 22, 1996 No. 42“tomorrow” and “spot” transactions refer to transactions with immediate delivery of funds. These transactions are carried out according to the bank's balance sheet on the date of delivery of funds for them. The inclusion of these transactions in the reporting of open currency positions is carried out in accordance with off-system accounting data (depending on the internal accounting rules in force in the bank) at the time of the transaction. In reports on open currency positions, “tomorrow” and “spot” transactions are reflected in the “Balance” column.

A “swap” transaction consists of two transactions:

Cash transaction (with immediate delivery of funds), which is taken into account off-system until the execution date (valuation) and in the balance sheet on the corresponding value date;

A forward transaction, which until the moment of movement of funds is accounted for on off-balance sheet accounts, and on the date of execution - in the balance sheet.

Classic currency swap transaction i.e., a “spot” + “forward” transaction is a foreign exchange transaction that combines the purchase or sale of a currency on the terms of a cash “slot” transaction with the simultaneous sale or purchase of the same currency for a period at the forward rate, adjusted to take into account the premium or discount depending on exchange rate movements. Thus, a swap transaction is a combination of a spot transaction and a reverse forward transaction, with both transactions executed with the same counterparty at the same time; both transactions have the same transaction currency; For both transactions, the transaction currency amount is the same.

When comparing swap transactions and transactions with a temporary option, it should be noted that transactions with a temporary option provide complete protection against currency risks, while swap transactions only partially insure against them. This is due to the fact that when conducting swap transactions, a currency risk arises due to a change in the opposite direction of the discount or premium in the period between the day the transaction is concluded and the day the currency is delivered.

Swap operation with interest rates involves an agreement between two parties on mutual interest payments for a certain amount in one currency, for example, when one party pays the other interest at the floating interbank interbank rate LIBOR, and receives interest at a fixed rate. Operation "swap" from currencies oi means an agreement to exchange fixed amounts of currencies, i.e. both parties exchange loan obligations. The last two operations can be combined, i.e. represent “swap” with currency and interest rates at the same time. This means that one party pays principal in one currency and interest at a floating rate of LIBOR in exchange for receiving the equivalent amount in another currency and interest at a fixed rate.

Interest rates on loans provided on the European market may be based on the opening bank's interest rate, or LIBOR.

LIBOR is the rate for placing three-month deposits on the London interbank market. The main interest rates for large banks on the London interbank market are announced every day at 11.00 local time 2 working days before funds are disbursed. LIBOR rates are fixed by the British Bankers Association based on quotes from 16 international banks. A margin is added to it, depending on the financial condition of the borrower, market situation, and loan repayment period.

LIBID is the rate for attracting deposits on the London interbank market. This is the prime rate of interest on deposits of London prime banks for banks of the same class. LIBID rates are not fixed; they are 1/8% lower than LIBOR.

A swap can be used to prolong a forward contract, to cover currency risk by carrying out spot and swap transactions as an investment of liquid funds.

A transaction in which a foreign currency is sold on a spot basis with its simultaneous purchase on a forward basis is called a report. A transaction where there is a purchase of foreign currency on a “spot” basis and its simultaneous sale on a “forward” basis - deport.

Swap transactions are carried out by agreement between two banks, usually for a period of one day to 6 months. These transactions can be carried out between commercial banks; commercial and central banks and the central banks themselves. In the latter case, they represent mutual lending agreements in national currencies. Since 1969, a multilateral system of mutual currency exchange has been created through the Bank for International Settlements in Basel based on the use of swap operations.

Sometimes swap operations are carried out with gold. Their goal is to retain ownership of it and at the same time acquire the necessary foreign brand for a period.

Swap transactions are convenient for banks: they do not create an open position (a purchase is covered by a sale), and they temporarily provide the necessary currency without the risk associated with changes in its exchange rate. Swap operations are used for:

Conducting commercial transactions: the bank sells foreign currency on the terms of immediate delivery and at the same time buys it for a period. For example, a commercial bank, having excess dollars for a period of 6 months, sells them into national currency on a spot basis. At the same time, taking into account the need for dollars in 6 months, the bank buys them at the forward rate. In this case, a loss on the exchange rate difference is possible, but in the end the bank makes a profit by providing national currency on credit;

Acquisition by the bank of the necessary currency without currency risk (based on coverage by a counter-transaction) to ensure international settlements and diversify foreign exchange reserves. Currency futures are also used to insure currency risk.

Futures at exchange rates- These are contracts to buy or sell a certain amount of currency at some date in the future. In this they are similar to forward foreign exchange contracts, but, unlike forward contracts, they:

Very easy to cancel;

They are concluded for a fixed amount,

Sold on official exchanges (for example, the London International Financial Futures Exchange - LIFFE was opened in 1992);

Provides that futures traders must pay “cash margin” (i.e., pay “money in advance”) to exchange dealers to ensure that futures obligations are met.

Exchange rate futures traders on LIFFE are called dealers (usually banks). They operate with large sums of money and are looking for a way to avoid currency risks.

Conclusions on the second chapter:

The economic foundations of foreign exchange transactions and the problems of their regulation are considered. As for the experience of currency regulation, we can confidently note that the current system of currency regulation and currency control is still very imperfect in its level. To form a complete working system, it is necessary to complete a number of strategic tasks. This includes the formation of a clear legislative framework for currency regulation, a clear distribution of responsibilities of all currency control bodies and agents, and improved information support for the work of currency control bodies and agents, as well as the implementation of centralized investment programs, primarily in the production sector.

With all the significance of these measures in the field of currency regulation, only a fundamental change in the situation, strengthening the economic security of the country, ensuring its worthy place in the world economic system, implementing a decisive structural restructuring of the economy, a major redistribution of resources into the most efficient areas and branches of modern production, creating an adequate financial -technical base can ensure the functioning of a full-scale modern foreign exchange market.

The classification of foreign exchange transactions is considered. In accordance with the law “On Currency Regulation and Currency Control,” all currency transactions are divided into: current and transactions related to the movement of capital. Currently, current foreign exchange transactions have acquired wider significance. In this case, deferred payment is provided for a minimum period. The limited range of foreign exchange transactions related to the movement of capital is justified by the greater risks involved in their implementation, as well as more complex registration (obtaining permission from the Central Bank of the Russian Federation for these transactions). It is necessary to clarify that all foreign exchange transactions are closely interrelated, so it is very difficult to clearly classify all transactions with foreign currency. Moreover, operations can be classified into several main types of foreign exchange transactions.

As a result of the internationalization of the banking market, the creation of transnational enterprises and banking institutions and the diversification of their activities, banks are constantly exposed to currency risks, which represent the possibility of monetary losses as a result of exchange rate fluctuations.

Ultimately, the new financial instruments considered, which are forward contracts, swaps, options and futures, allow you, first of all, to protect yourself from currency risks, as well as to finance your activities at lower costs, and to have certain types of resources that would otherwise be unavailable. Finally, these are instruments of speculation. In addition, financial instruments are a powerful factor in global financial integration: they establish a direct link between the international market and the domestic markets of various countries. This integration provides many benefits, but does not come without inconveniences and risks. This explains the fact that monetary authorities and governments of leading industrialized countries are concerned about ensuring certain regulation of international markets and foreign exchange risks.

Basic concepts of currency settlements

During periods of economic instability and high inflation, many citizens prefer to keep their savings in freely convertible currency (FCC) or in foreign currency deposits.

Currency is bought and sold like any other commodity, based on supply and demand. The final price of foreign currency obtained as a result of trading is expressed in exchange rate. The exchange rate is the price of a monetary unit of the national currency, expressed in the monetary units of another country. Setting the foreign exchange rate is called quotation.

Distinguish direct and indirect currency quotation, With a direct quotation, the exchange rate shows how many units of national currency must be paid for one or 100 units of foreign currency. With indirect quotation - how many units of foreign currency can be obtained for one or 100 units of national currency.

The prices for selling and buying currencies differ in size. The difference between the selling rate and the buying rate of a currency is called spread. Due to the difference in supply and demand rates, the bank has the opportunity to cover the costs of transactions, take into account the possible risk associated with foreign exchange transactions, and receive a certain profit.

Let's consider how the profitability of a financial transaction of purchasing currency is assessed. Let's assume that a certain amount of PV rubles is exchanged for foreign currency. Then, after a period of n years, it was exchanged for rubles.

Let us denote the amount in rubles at the beginning of the operation;

Amount in rubles at the end of the transaction;

and - the exchange rate at the beginning and at the end of the transaction, respectively, having a dimension, for example, in rubles/dollars. or in rubles/euro. In other words, - the bank rate for selling currency, - the bank rate for buying currency.

The amount received as a result of the transaction can be determined by the formula:

Where

Since over the course of n years, as a result of inflation, the purchasing power of the amount received has decreased to a certain extent, its real purchasing power can be determined by the formula:

Here is the price index for a period of n years.

Where is the average annual inflation rate.

Let us determine the profitability of the financial transaction under consideration in the form of a complex annual interest rate from the equality:

Expressing from this equality , we find a formula for determining the profitability of a currency purchase operation:

The profitability of such an operation is zero if the condition is met. When the operation is profitable, and when it is unprofitable.

Example. An entrepreneur, having a free amount of 500 thousand rubles, plans to purchase currency with it in order to save funds from inflation, so that after 1.5 years he can again exchange the currency for rubles and purchase the necessary equipment with these funds. At the beginning of the financial transaction, the purchase price of a dollar by the bank is 24.15 rubles, and the selling price is 24.20 rubles. For the euro, these figures are respectively 34, 65 rubles. and 34.75 rub. It is assumed that at the end of the term the purchase price of dollars by the bank will be 24.75 rubles, and the selling price will be 24.85 rubles. Similar indicators for the euro at the end of the operation are 36.50 rubles. and 36, 60 rub. The average annual inflation rate is projected at 7.5%.

Define:

a) the amount in rubles received as a result of the purchase and sale of dollars and euros;

b) the purchasing power of the amounts received taking into account inflation:

c) profitability of financial transactions;

d) the rate of purchase of currency by the bank at the end of the operation, which would ensure complete preservation of funds from inflation.

Thus, in 1.5 years prices will increase by 11.46%,

A)

From the calculations made, it is clear that the operation with euros in this case gives the best result.

b) Let's adjust this result to adjust for inflation.

1.1 Bank’s foreign exchange policy at the present stage

The foreign exchange policy of Prominvestbank of Ukraine is aimed primarily at providing services to large, medium and small businesses, on which the prosperity of the domestic economy largely depends. The bank's clients include public sector enterprises, business structures, public organizations and institutions. There are no restrictions or obstacles to becoming a client of Prominvestbank.

Prominvestbank of Ukraine is the largest commercial bank in Ukraine; it has license No. 1 of the National Bank of Ukraine, which allows it to carry out the entire range of foreign exchange transactions both on the domestic and global currency markets. It finances key sectors of the economy, serves more than 108 thousand legal entities and 1.842 million individuals. Today, the bank has everything necessary to ensure that its clients feel confident when carrying out their foreign trade transactions. Having experience in converting all major types of currencies and having a developed network of correspondent banks, the bank provides clients with the opportunity to make payments in any currency and in any country.

To provide quality customer service, the bank concentrated foreign currency accounts on 196 NOSTRO correspondent accounts in 67 foreign countries. Among them: Bank Of New York, Bankers Trust Co, Deutsche Bank AG, Commers Bank AG, etc. In turn, 24 banks of these countries have opened 36 LORO accounts in Prominvestbank for carrying out transactions in hryvnia. It is planned to further expand the network of LORO correspondent accounts. The bank is a member of the international payment systems VISA, EUROPAY, MASTERCARD INTERNATIONAL.

Particular mention must be made of Prominvestbank conducting interstate settlements between Ukraine and Russia. In order to protect the funds of its clients, in 1994 Prominvestbank became the founder of the first Russian-Ukrainian CB “Creditimpexbank” - one of the most progressive banks in Moscow. Representing the interests of Ukraine in Russia, CB Kreditimpexbank conducts about 80% of all settlements between Ukraine and Russia. The technology for making payments, developed and implemented by specialists from Prominvestbank and Kreditimpexbank, made it possible to reduce the processing time by 3 times, the period for converting Russian rubles into Ukrainian hryvnia was reduced to 2 days.

The bank constantly cooperates with foreign banks that have opened credit lines in favor of Prominvestbank clients, including: CREDIT SUISSE (FIRST BOSTON) (Switzerland), VSEOBECNA UVEROVA BANKA (Slovenia). With banks: DUETSCHE BANK AG, COMMERZBANK AG, DRESDNER BANK, BANK OF NEW YORK, work was carried out to confirm letters of credit and guarantees.

In 1999, Prominvestbank was designated as an agent bank for servicing foreign credit lines, which are attracted under the guarantee of the Cabinet of Ministers of Ukraine. The bank's branches provide active financial support to 1,166 subjects of foreign economic activity. Foreign currency loans are issued to enterprises in key sectors of the Ukrainian economy.

In 1999, the bank successfully pursued a credit policy to support national producers. The bank's institutions issued loans in all types of currencies in the amount of UAH 3,655.1 million, which is 4% more than in 1998.

The structure of loans issued in 1999 is presented in Figures 1.1-1.3.

Loans for production purposes amounted to -49%, for export-import operations -38%, for domestic trade operations -12%, for discounted bills -1%.

In the structure of issued loans, loans to industrial enterprises traditionally have an advantage - 68.2%, of which to basic industries: metallurgy - 28.9%, coal - 4.6%, fuel - 6.2%.

Figure 1.2 - Structure of loans issued by intended use

By type of ownership, in the structure of loans issued in 1999, loans to non-state-owned enterprises had a large predominance - 67.5%, loans issued to state-owned enterprises amounted to -32.5%.

As for business entities, the predominant role in the structure of loans for 1999 was given to legal entities; they accounted for 98.4% of the total amount of loans; it is planned to expand the range of services for lending to individuals; in 1999, loans to individuals amounted to 1.6 %.

Figure 1.3 - Structure of loans issued by business entity

To ensure lending activities, the bank is constantly working to increase its resource base. In 1999, the total volume of credit resources increased by UAH 94.8 million. The bank has a fairly high level of solvency and ensures timely payments to clients. The significant capital of the bank guarantees depositors the savings of their funds and indicates the reliability of the bank. During the year, the bank supported the implementation of economic standards established by the National Bank of Ukraine. The bank's economic indicators as of January 1, 2000 are shown in Table 1.1.

Table 1.1 - Economic standards of the bank

	Name of economic standard	Standard	Actual figure
			in million ECU	in million UAH
	Minimum bank capital (N1) ECU at the current exchange rate	Not me 2 million.
	Minimum amount of authorized capital (N2) ECU at the current exchange rate	Not me 1 million.
	Solvency standard (N3),%
	Capital adequacy ratio (N4), %
	Instant liquidity ratio (N5), %
	General liquidity ratio (N6), %
	Standard ratio of highly liquid assets and working capital (N7), %
	Maximum size of Drawing per depositor (H8), %	No more than 25
	Standard for “large” credit figures (N9), %	No more than 800
	Standard for the maximum amount of loans, guarantees and sureties given to one insider (N10), %	No more than 5
	Standard for the maximum total amount of loans, guarantees given to insiders (N11), %	No more than 40
	Standard for the maximum size of these interbank loans (N12), %	No more than 200
	Refinancing ratio (N13), %	No more than 300
	Investment standard (N14), %	No more than 50

Today, the basic principles of Prominvestbank's activities remain unchanged: a high degree of trust in working with any clients and the desire to provide all types of services that are possible today in the foreign exchange market of Ukraine.

Main foreign exchange services of Prominvestbank:

1) Cash settlement services for legal entities

• Opening and re-registration of various types of accounts in national and foreign currencies.
• Carrying out transactions on accounts. Debiting and crediting funds using electronic payment systems.
• Issuance of certificates of accounts, statements, duplicates, forms of various financial documents.
• Registration and issuance of check books, operations with checks.

2) Cash service.

• Search for incorrectly listed funds.
• Collection and letter of credit operations for international payments.
• Execution of collection orders.
• Installation of ATMs, salary projects.

3) Credit operations.

• Overdraft . A loan provided to the current account of a client with good financial condition within a certain limit, calculated on the basis of data on receipts to the client’s current account, for a certain period of time to finance payment gaps in his current activities.
• Credit lines . Targeted lending of commercial transactions of legal entities using the loan amount in installments over a period of time determined by the agreement. The line of credit can be either revolving or non-revolving.
• Urgent loan . Short-term targeted lending of commercial transactions designed for the client to quickly receive profit from the loaned transaction.
• Aval loan . A short-term loan provided by a bank through the avalization of bills of exchange issued by a client, or the domiciliation of a client's bill of exchange using loan proceeds.
• Factoring. A short-term trade commission operation consisting of the bank’s repurchase of its client’s unpaid payment claims for goods delivered, work performed, services rendered. The bank purchases short-term accounts payable, providing a guarantee of sale to customers with a stable financial position. Factoring includes collection of client's receivables, lending and guarantees from credit and currency figures.
• Forfeiting. Short- or medium-term trade and commission operation for export, combined with lending to the client’s working capital.
• Leasing loan. Client financing by long-term lease of fixed assets with the right to purchase.
• Investment loan. Long-term foreign currency loan provided to clients for a period of 1 to 5 years for the purchase of imported fixed assets under credit lines for small and medium-sized enterprises.
• 4) Services to the public
• Deposits of various types: urgent, on demand, winning. Namely:

a) agreements on a current deposit account - free handling of the balance of funds in the deposit account (through additional deposits and partial withdrawals), compound interest is accrued on the account balance;

b) agreement on a fixed-term deposit account - placement of funds for a fixed period, accrual and payment of interest is made both at the end of the contract and on a monthly basis;

c) agreement on a demand account " - the terms of the agreement provide for the free withdrawal of funds upon request, the minimum placement period is one day, excluding the day of receipt and withdrawal of funds.

• Transfer of funds from the accounts of individuals to the accounts of legal entities.
• Transfer of funds, incl. abroad.
• Payments to ostarworkers.
• Making payments and crediting receipts in “hard” and “soft” currencies.
• Conversion of cash and non-cash currency. Authentication check, replacement of worn-out banknotes.
• Issuance of permits for the export of currency.
• Purchase and sale of traveler's and commercial checks, payments by international plastic cards.
• Servicing international credit lines.
• Currency dealing.

5) Transactions with VISA cards

• Issuance of plastic payment cards of the international payment system VISA to individuals and legal entities.
• Settlement services for trade and service (hotels, tourism agencies, auto companies, etc.) enterprises for transactions carried out using VISA cards.
• Issuance of cash to VISA cardholders.

6) Other services

• Preservation and transportation of valuables.
• Individual safes.
• Implementation of the "Client-Bank" and "Voice Communication" systems.
• Consulting services.

1.2 Analysis of the bank’s foreign exchange transactions

The analysis of foreign exchange transactions of a commercial bank is carried out on the basis of the work of the foreign exchange department of the Alexandria branch of Prominvestbank of Ukraine.

Each bank, taking into account the peculiarities of its structure, can determine its own internal classification of foreign exchange transactions.

Let us analyze the structure of foreign exchange transactions carried out by the foreign exchange department of the Alexandria branch of Prominvestbank of Ukraine.

Throughout 2000, the department carried out work to attract clients and open accounts in foreign currency. At this time, 584 foreign currency accounts have been opened in the Alexandria branch of PIB, which is 14% more than in 1999, and 523 foreign currency accounts have been opened for individuals.

There are 4 bank currency exchange points (BPOs) in the city. The profit from the first BPOV amounted to 14,980 hryvnia, from the second - 16,158 hryvnia, from the third - 15,450 hryvnia, and from the fourth - a loss of 2,972 hryvnia. Thus, the average profitability of one bank currency exchange office was (14980+16158+15450-2972)/4 = 10904 hryvnia. During this period, 1 exchange office operated under agency agreements, the profit was 7,456 hryvnia. Permits for the export of currency are being issued, 62 permits have been issued - the profit amounted to about 2,586 hryvnia. Income from issuing currency for travel expenses amounted to 2,988 hryvnia. The non-trading operations department sells “TOMAS COOK” checks; checks were sold in the amount of $34,500, the profit was 800 hryvnia. An agreement on the sale of traveler's checks was signed with AMECICAN EXPRESS COMPANY.

In 2000, enterprises actually received loans for 280 thousand US dollars and 15 thousand German marks. As of January 1, 2001, the loan debt is 10.5 thousand US dollars and 8 thousand marks. An analysis of the state of international payments showed that for several years there has been a downward trend in export supplies. Thus, in 2000, the volume of export earnings amounted to 5.6 million US dollars, which is 19% less than in 1999. Due to a decrease in export earnings, the volume of exchange transactions decreased by 1.8% compared to 1998.

The most popular form of payment remains a bank transfer, both in freely convertible currency and in non-convertible currency. In the total volume of export transactions it is 98.8%, in import transactions - 95.6%. However, compared to 1998, settlements on import letters of credit increased by 0.76% (0.87 million US dollars). In 2000, from currency transactions the department received UAH 320 thousand. income, including commissions 76 thousand UAH, which is 10% and 2.38% of total income. The profit amounted to 297.5 thousand UAH. or 85% of total profit. Profit from foreign exchange transactions amounted to UAH 17,850. or 6% of profit from foreign exchange transactions and 5.1% of total profit.

According to the bank’s tariffs, for each currency transaction carried out, the bank charges the client a commission, both in the national currency of Ukraine and in hard currency.

All foreign exchange transactions are associated with both income and expense items.

1.2.1 ANALYSIS OF THE BANK’S OPEN CURRENCY POSITION STANDARDS

One of the indicators of a bank’s reliability and stability when working with foreign currency is compliance with open currency position standards.

The standards for the open currency position of an authorized bank are divided into:

Standards for the bank's open currency position;

Standards for the bank's weighted open currency position.

The standard for the bank's total open currency position (N16) is calculated as the ratio of the total value of the bank's open currency position to the bank's capital:

Н16=х100%, (1.1)

where Вп is the bank’s total open currency position for all on-balance sheet and off-balance sheet assets and liabilities of the bank for each foreign currency in hryvnia equivalent;

K is the bank's capital.

The standard value of the bank's total open currency position can be no more than 40%.

The standard for long (short) open currency position for each foreign currency (N17) is calculated as the ratio of the long (short) open currency position for each foreign currency in hryvnia equivalent to the bank’s capital:

Н17=х 100%, (1.2)

where Vin is a long (short) currency position for each foreign currency in hryvnia equivalent;

K is the bank's capital.

The standard value of a bank's long (short) open currency position for each foreign currency can be no more than 20%.

The standard for long (short) open currency position in all banking metals (N18) is calculated as the ratio of long (short) open currency position in all banking metals in hryvnia equivalent to the bank's capital:

Н18=х100%, (1.3)

where Вм - long (short) currency position in all banking metals in hryvnia equivalent;

K is the bank's capital.

The standard value of a bank's long (short) open currency position in all banking metals can be no more than 10%.

The standard for the weighted open foreign exchange position (N19) is calculated as the ratio of the weighted open foreign exchange position to the bank's capital:

H19 = x 100%, (1.4)

where Вз is an open currency position for assets and liabilities for each foreign currency, weighted by a coefficient that is determined by the period that remains calculated;

K is the bank's capital.

The coefficients that are set taking into account the period that remains before the calculation are shown in Table 1.2.

Table 1.2 - Coefficients established taking into account the period remaining until the final settlement.

For permanent deposits, current and current accounts, the settlement period for which is not provided, a coefficient of 1.2 is used.

The standard value of the bank's weighted open currency position should be no more than 50%. The standard for a bank's long (short) weighted open currency position in freely convertible currency (N20) is calculated as the ratio of the bank's long (short) weighted open position in freely convertible currency to the bank's capital

H20= x 100%, (1.5)

where Вв - long (short) weighted open currency position of the bank in freely convertible currency;

K is the bank's capital.

The standard value of the bank's long (short) weighted open currency position in freely convertible currency should be no more than 30%.

The standard for a bank's long (short) weighted open currency position in non-freely convertible currency (N21) is calculated as the ratio of the bank's long (short) weighted open position in non-freely convertible currency to the bank's capital

Н21= x 100%, (1.6)

where Вн - long (short) weighted open currency position of the bank in a non-freely convertible currency;

K is the capital of the tank.

The standard value of a bank's long (short) weighted open currency position in a non-freely converted currency can be no more than 15%.

Reports on open and weighted open currency positions are provided in Form N540 and N541.

An authorized bank, which has a network of branches (directorates, branches, etc.) that have permission to conduct foreign exchange transactions, independently sets sublimits for open currency positions of the head office of the bank and branches (directorates, branches). In this case, the reciprocal distribution of sublimits is carried out by authorized banks within the limits of the general standard for the bank’s currency position.

The authorized bank, no later than the day following the day the sublimits were established, informs the relevant regional department of the NBU about the established sublimits. The currency position of the authorized bank is determined daily and separately for each foreign currency.

Operations affecting the open currency position of the authorized bank:

Purchase (sale) of cash and non-cash foreign currency, both current and urgent transactions (on swap, forward, option and other terms), for which claims and obligations arise in foreign currencies, regardless of the methods and forms of settlements for them;

Receipt (payment) of foreign currency in the form of income or expenses and accrual of income or expenses, which are accounted for in hryvnia accounts;

Purchase (sale) of basic methods and inventory items for foreign currency;

Receipt of funds in foreign currency to the authorized capital;

Repayment by the bank of bad debts in foreign currency (write-off, which is carried out from the hryvnia expense account);

Other exchange transactions with foreign currency (the emergence of claims in one currency when making payments for them in another currency, including national).

The currency position arises on the date of the transaction from the purchase (sale) of foreign currency, as well as the accrual of income (costs), crediting to (debiting from accounts) other income (costs) and in accordance with recalculated transactions.

An authorized bank receives the right to an open currency position from the date it receives a banking license from the National Bank of Ukraine for the right to conduct transactions with currency assets and loses this right from the date of its revocation by the National Bank of Ukraine.

The total value of the open currency position in the hryvnia equivalent is calculated using the official hryvnia exchange rate in effect on the reporting date, established by the National Bank of Ukraine. In this case, a long open currency position is shown with a plus sign, and a short open currency position is shown with a minus sign.

The total value of the open currency position as a whole for the authorized bank is determined as the sum of the absolute values ​​of all long open currency positions and all short open currency positions in the hryvnia equivalent (without taking into account the sign) for all currencies.

An example of calculating the bank's total open currency position.

Primary data:

a) bank capital as of the first day of the reporting month - 5,000,000 UAH. The bank's assets and liabilities on balance sheet and off-balance sheet accounts for each foreign currency, which are displayed on the balance sheet according to the list of transactions that affect the bank's open currency position, are shown in Table 1.3.

Table 1.3 - Bank assets and liabilities by types of foreign currencies

Foreign currency	Bank assets by score. and extra-balance Accounts for each foreign currency	The bank's liability on the balance sheet. and extra-balance accounts for each foreign currency	Open currency position for each foreign currency
U.S. dollar
German mark
French franc
Russian ruble

Long and short open currency positions for each foreign currency are converted into hryvnia equivalent at the official NBU exchange rate and added up.

b) the rates established by the National Bank of Ukraine are summarized in table 1.4.

Table 1.4 - Rates established by the National Bank of Ukraine

The total value of the bank's open currency position is equal to the sum of the absolute values ​​of the bank's long and short open currency position for each foreign currency. Calculation of the established standard for the total amount of the bank's open currency position:

(960,687: 5,000,000) x 100% = 19.2%

Table 1.5 - Bank assets and liabilities by types of foreign currencies in hryvnia equivalent as of the reporting date

Foreign currency	Long open currency position	Short open currency position	Total open currency position
U.S. dollar
Table 1.5 (continued)
German mark
French franc
Russian ruble

When calculating the bank's weighted open currency position of assets and liabilities on the bank's balance sheet and off-balance sheet accounts, attention is paid to the coefficients taking into account the period remaining until the final settlement. The mechanism for calculating the weighted open currency position is the same as when calculating the total open currency position.

1.2.2 STRUCTURAL ANALYSIS OF THE DYNAMICS AND VOLUME OF INCOME FROM CURRENCY OPERATIONS

Bank income is the amount of money received from the results of active operations. In accordance with the developed accounting policy, the bank's income includes income directly related to banking activities and not related to the main activities of the bank, but providing for general banking activities. All income items can be divided into interest income and non-interest income, depending on the type of income transaction. When accounting for interest and commission income in bank institutions, the accrual principle is used. All transactions performed are recorded when they took place, regardless of the time of receipt or payment of funds. Revenues are considered earned in the period in which the related transaction occurs, and not when the funds are actually received. Interest income is accrued on balances on correspondent accounts opened with other banks, as well as on deposit accounts and on transactions with securities. The amount of interest rates, the procedure for calculating interest, the procedure for their payment are determined in agreements between the bank and the client. Revenues from the last day are in some cases taken into account in the following month, when the reporting date is the end date of the transaction. This situation also arises when it is impossible to determine the amount of income due to the lack of necessary data to determine it, despite the fact that the service was provided in the previous month. Interest is calculated using the “fact/fact” method (the actual number of calendar days in a month and year is taken into account).

Accounting for income received in foreign currency is carried out using technical accounts 3800 “Bank position in foreign currency and banking metals” and 3801 “Equivalent of the bank’s position in foreign currency and banking metals”.

In accordance with the Accounting Rules, interest and commission income are divided into: income for one-time services, income for services with a mandatory result, income for continuous services, income for services that are carried out in stages.

Figure - 1.4 The share of income from foreign exchange transactions in the total amount of income.

A quantitative analysis of the bank's income structure is considered in determining the share of income items in the total amount. A comparative analysis of both total income and each of their items is carried out for the corresponding time period. The analysis of the structure is based on the percentage values ​​of each to the total amount. Changes in percentage indicators indicate changes in the share of articles in the overall indicators.

In 1998, income from foreign exchange transactions amounted to 18.2 million UAH, which accounted for 13.7% of total income; in 1999, income from foreign exchange transactions increased by 3.8 million UAH. and amounted to 22 million UAH, which amounted to 14.6% of total income. This is clearly depicted in Figure 1.4.

All income items can be divided into interest income and non-interest income, depending on the type of income transaction. This is clearly depicted in Table 1.6.

Table 1.6 - Structure of income and profitability from foreign exchange transactions for the analyzed period.

interest	Total amount, UAH.	Share in income, %
1. Interest on balances on NOSTRO accounts
2.Interest on interbank loans of non-resident banks in hryvnia
3.Interest on interbank loans in hard currency
4. Income from conversion operations
5.Commission from funds transfers on behalf of clients
6. Income from permits to export currency
7. Income from the sale of foreign currency for travel expenses

Foreign exchange transactions are transactions related to the export and import of goods, works, services, settlements for which are carried out both in foreign currency and in national currencies, as well as the purchase and sale of foreign currencies.

An exchange rate is the rate at which the currency of one country can be sold in exchange for the currency of another country.

There are 2 ways to buy and sell foreign currency:

1) spot, i.e. immediate delivery;

2) forward, i.e. delivery associated with a specific date in the future.

Spot foreign exchange transactions account for about 90% of all foreign exchange transactions.

The state sells foreign currency to purchase national currency when it seeks to prevent the depreciation of its currency. And, conversely, to curb the exchange rate of the national currency, the state buys foreign currency, replenishing official reserves.

There are two methods of quoting foreign currency against national currency - direct and reverse. Most countries use direct quotation, in which the value of a unit of foreign currency is expressed in national currency. At indirect quotation The unit is the national monetary unit, the exchange rate of which is expressed in a certain amount of foreign currency. In transactions on the interbank foreign exchange market, quotes are made primarily against the US dollar, since it is an international means of payment and reserve.

In the process of making transactions with currencies, the bank receives one currency for another. At the same time, the ratio of the bank's claims and obligations in foreign currency determines its currency position. If the requirements and obligations coincide, then the currency position is considered closed; if they do not match, it is considered open. An open currency position can be of two types: short and long. A position in which the obligations for the currency sold exceed the requirements is called short, but if the requirements exceed the obligations, it is called long.

The analysis of foreign exchange transactions of a commercial bank is carried out in the following sequence:

Stage 1. An analysis of the composition and structure of the volumes of foreign exchange transactions is carried out:

English pound sterling;

Japanese yen;

U.S. dollar;

Russian ruble.

Stage 2. An analysis of the exchange rates of the Belarusian ruble and the currencies included in the currency basket is carried out:

U.S. dollar;

Russian ruble.

The data is entered into a table, changes are found and conclusions are drawn.

Stage 3. An analysis of relative indicators characterizing the nature of the bank’s foreign exchange operations is carried out:

The share of a specific currency in the total volume of foreign exchange transactions;

Discount (premium) at the forward exchange rate, which is determined by the following formula:

Where: SPDa- interest rate on deposits in currency A (A is the quoting currency);

SPDc- interest rate on deposits in currency C (C is the quoted currency);

KS- spot rate;

PKF– approximate forward rate, calculated by the formula:

Where: HF– credit investments;

SF – the transaction term is forward.

The share of foreign exchange transactions in the total volume of banking operations;

Profitability of foreign exchange transactions.

Stage 4. A factor analysis of the change in discount is carried out using the following factor model:

Stage 5. Reserves for the growth of foreign exchange transactions are being calculated and proposals are being developed to improve the bank's foreign exchange activities.