Officially established cash ratio. Currency quotation procedure

currency monetary Bretton Woods

The international monetary system includes a number of constructive instruments, among which are the following:

global monetary commodity and international liquidity;

exchange rate;

foreign exchange markets;

international monetary and financial organizations;

interstate agreements.

The development of foreign economic relations requires a special tool through which entities operating in the international market could maintain close financial interaction with each other. Such a tool is banking operations for exchanging foreign currency. The most important element in the system of banking transactions with foreign currency is the exchange rate.

An exchange rate is defined as the value of one country's currency expressed in another country's currency. The exchange rate is necessary for currency exchange when trading goods and services, movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for the periodic revaluation of foreign currency accounts of firms, banks, governments and individuals. The exchange rate is formed on the foreign exchange market. However, the exchange rate is not simply the “price” of one monetary unit expressed in another, but a complex synthetic indicator of the cost comparison of two national economies.

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

Exchange rates are divided into two main types: fixed and floating. The fixed exchange rate is based on currency parity, that is, the officially established ratio of monetary units of different countries. Floating exchange rates depend on market supply and demand for a currency and can fluctuate significantly in value.

Fixed exchange rate- this is an officially established ratio between national currencies, allowing a temporary deviation from it in one direction or another by no more than 2.25%.

Fixing the rate can be done in various ways:

Fixing the rate to one currency- means linking the exchange rate of the national currency to the rate of the most significant currencies of national settlements. Usually such a peg is carried out by less developed countries in relation to the currencies of more developed countries. Moreover, to countries with which there are close trade relations. The motives for implementing such a policy are quite obvious: guaranteeing the stability of trade relations, primarily for long-term contracts and preventing the influence of possible exchange rate fluctuations on changes in the price level in the country if the peg had not been implemented;

Fixing the rate to the currency composite- linking the exchange rate of the national currency to the rates of collective monetary units or to various baskets of currencies of countries that are the main trading partners. The share of currencies in baskets compiled to fix the exchange rate usually reflects the weight of countries that use this currency in foreign trade in goods and services and in the movement of capital of a given country.

It should be noted that in practice, strictly fixed exchange rates are rare. Moreover, this is a rather difficult condition to achieve.

Floating exchange rate- this is a rate that changes freely under the influence of supply and demand, which the state can, under certain circumstances, influence through foreign exchange interventions. Mechanisms of exchange rate formation with a floating exchange rate are divided into:

“pure floating” - exchange rate setting without central bank intervention in the foreign exchange market;

“dirty floating” - exchange rate formation during active interventions of the central bank in the foreign exchange market.

There are a number of factors that lead to changes in the fundamental equilibrium of the exchange rate of currencies. They are divided into structural (acting in the long term) and opportunistic (causing short-term fluctuations in the exchange rate).

TO structural factors relate:

competitiveness of the country's goods on the world market;

the state of the country's balance of payments;

purchasing power of monetary units and inflation rates;

differences in interest rates in different countries;

state regulation of the exchange rate;

degree of openness of the economy.

Market factors associated with fluctuations in business activity in the country, the political situation, rumors and forecasts. These include:

activity of foreign exchange markets;

speculative currency transactions;

crises, wars, natural disasters;

cyclical nature of business activity in the country;

forecasts

In the current conditions of economic globalization, the decisive influence on the exchange rate is exerted by capital flows between different foreign exchange and financial markets

They also play an important role political expectations. Thus, a stable political situation increases the attractiveness of investments in the country’s economy and contributes to the appreciation of the national currency. Other things being equal inflation rate in a country inversely affects the value of the national currency

Changes in interest rates affects the exchange rate in two ways. On the one hand, their nominal increase within the country causes a decrease in demand for the national currency, since it becomes expensive for entrepreneurs to take out a loan. Having taken it, entrepreneurs increase the cost of their products, which, in turn, leads to an increase in prices for goods within the country. This comparatively depreciates the national currency in relation to the foreign one. On the other hand, an increase in real interest rates (i.e., nominal interest rates adjusted for the rate of inflation) makes, other things being equal, placing funds in this country more profitable for foreigners. That is why capital flows into a country with higher interest rates, the demand for its currency increases, and it becomes more expensive

Payment balance directly affects the exchange rate. Thus, the active balance of payments contributes to the appreciation of the national currency, as the demand for it from foreign debtors increases. A passive balance of payments creates a tendency for the exchange rate to depreciate, as domestic debtors try to sell it for foreign currency to pay off their external obligations. The size of the influence of the balance of payments on the exchange rate is determined by the degree of openness of the country's economy. Thus, the higher the share of exports in the gross national product (the higher the openness of the economy), the higher the elasticity of the exchange rate to changes in the balance of payments.

National income is not an independent component that can change on its own. However, in general, those factors that cause national income to change have a great influence on the exchange rate. Thus, an increase in the supply of products increases the exchange rate, and an increase in domestic demand reduces it.

In addition, exchange rate formation factors include currency speculation markets, i.e. game on unknown (assumed) exchange rates. This operation is carried out by financial market participants in order to make a profit on differences in exchange rates.

Finally, the exchange rate of the national currency is significantly affected by seasonal peaks and valleys of business activity in the country[ibid.]

Currently, we can say with confidence that exchange rates are an important point in the entire system of international economic relations, and the entire complex of internal and external factors that determine the development of the economy of a particular country affects the dynamics of exchange rates.

Economic transactions between participants in international relations are impossible without the exchange of one national currency for another. The proportion in which the currency of one country is exchanged for the currency of another is called the exchange rate. In other words, each foreign monetary unit has an exchange rate - a price expressed in the national currency of another country.

The exchange rate is necessary for currency exchange when trading goods and services, movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for the periodic revaluation of foreign currency accounts of firms, banks, governments and individuals. The exporter exchanges the proceeds of foreign currency for national currency, since the currencies of other countries cannot circulate as a legal means of purchase and payment in the territory of a given state. The importer exchanges national currency for foreign currency to pay for goods purchased abroad.

Exchange rates are divided into two main types: fixed and floating.

The fixed exchange rate fluctuates within a narrow range. Floating exchange rates depend on market supply and demand for a currency and can fluctuate significantly in value.

The fixed exchange rate is based on currency parity, i.e. officially established ratio of currencies of different countries. Under monometallism - gold or silver - the base of the exchange rate was monetary parity - the ratio of monetary units of different countries according to their metallic content. It coincided with the concept of currency parity.

Under gold monometallism, the exchange rate was based on gold parity - the ratio of currencies according to their official gold content - and spontaneously fluctuated around it within the limits of gold points. The classic mechanism of gold points operated under two conditions: free purchase and sale of gold and its unlimited export. The limits of exchange rate fluctuations were determined by the costs associated with transporting gold abroad, and actually did not exceed +/- 1% of parity. With the abolition of the gold standard, the gold dot mechanism ceased to function.

The exchange rate with fiat credit money gradually broke away from the gold parity, as gold was forced out of circulation into treasure. This is due to the evolution of commodity production, monetary and exchange rate systems. Until the mid-70s, the exchange rate was based on the gold content of currencies - the official scale of prices - and gold parities, which were fixed by the IMF after the Second World War. The measure of the relationship between currencies was the official price of gold in credit money, which, along with commodity prices, was an indicator of the degree of depreciation of national currencies. Due to the gap between the official, state-fixed price of gold and its value for a long time, the artificial nature of gold parity has intensified.

For more than 40 years (1934-1976), the price scale and gold parity were established on the basis of the official price of gold. Under the Bretton Woods monetary system, due to the dominance of the dollar standard, the dollar served as the reference point for the exchange rates of other countries.

Cash funds formed from profits
In a market economy, the economic category “profit” occupies a central place, expressing diverse economic ties and acting as the main goal of entrepreneurial activity. Profit (positive financial result) is the main indicator of...

Direct quotation - the amount of national currency per unit of foreign currency. In most countries, foreign exchange rates are expressed in national currency. This is the so-called direct quotation system. For example, in Germany, one US dollar ($) will be equal to a certain number of German marks (DM), and in New York, one German mark will be equal to a certain number of cents (or dollars, if the mark rate is high enough).

Reverse quotation is the amount of foreign currency per unit of national currency.

The exchange rate is defined as the value of one country's currency expressed in another country's currency. The exchange rate is necessary for currency exchange when trading goods and services, movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for the periodic revaluation of foreign currency accounts of firms, banks, governments and individuals.

Exchange rates are divided into two main types: fixed and floating.

The fixed exchange rate fluctuates within a narrow range. Floating exchange rates depend on market supply and demand for a currency and can fluctuate significantly in value.

The exchange rate with fiat credit money gradually broke away from the gold parity, because gold was displaced from circulation into treasure. This is due to the evolution of commodity production, monetary and exchange rate systems. For the mid-70s, the basis of the exchange rate was the gold content of currencies - the official scale of prices - and gold parities, which were fixed by the IMF after the Second World War. The measure of the relationship between currencies was the official price of gold in credit money, which, along with commodity prices, was an indicator of the degree of depreciation of national currencies. Due to the gap between the official, state-fixed price of gold and its value for a long time, the artificial nature of gold parity has intensified.

After the end of the exchange of the dollar for gold at the official price in 1971, the gold content and gold parities of currencies became purely nominal concepts. As a result of the Jamaican currency reform, Western countries officially abandoned the gold parity as the basis of exchange rates. With the abolition of official gold parities, the concept of coinage parity also lost its meaning. In modern conditions, the exchange rate is based on currency parity - the relationship between currencies established by law, and fluctuates around it.

In accordance with the amended IMF Charter, currency parities can be established in SDR or other international currency unit. A new phenomenon since the mid-70s has been the introduction of parities based on a currency basket. This is a method of measuring the weighted average exchange rate of one currency against a specific set of other currencies. The use of a currency basket instead of the dollar reflects the trend away from the dollar to a multi-currency standard.

Thus, in a free floating system, the exchange rate is formed under the influence of market demand and supply. At the same time, the foreign exchange forex market is closest to the model of a perfect market: the number of participants, both on the demand side and on the supply side, is huge, any information is transmitted in the system instantly and is available to all market participants, the distorting role of central banks is insignificant and inconsistent.

In a managed floating system, in addition to supply and demand, the exchange rate is strongly influenced by the central banks of countries, as well as various temporary market distortions. An example of a fixed exchange rate system is the Bretton-Woods currency system of 1944-1971. The target zone system develops the idea of fixed exchange rates. This type includes the mode of functioning of exchange rates of countries participating in the European Monetary System.

Country currency is a legally established means of payment, mandatory for conducting settlement transactions on the territory of the state. Its physical carrier is paper banknotes or banknotes and metal coins issued to ensure cash circulation. The monetary unit also circulates in non-cash form for settlements between business entities and individuals.

Payment means in each of the independent states have their own names, approved, as a rule, by a special legislative act.

List of currencies of the largest countries in the world:

Australia – Australian dollar;
Argentina - Argentinean;
Brazil – Brazilian real;
Great Britain - pound sterling;
- euro;
India – ;
Canada – Canadian dollar;
People's Republic of China - yuan;
Russian Federation - ;
United States of America - dollar;
Japan - yen.

The names of national monetary units may have historical origins from the names of coins that were in circulation in a given territory. In another case, these are specially invented synthetic words. So, when the issue of a European currency was being decided, a neutral name was proposed - the euro. This name did not infringe on the national pride of the inhabitants of any of the countries that joined the union.

Monetary units of all countries of the world have three-letter designations in the form of codes established by the international standard ISO 4217:2008. They are used in official banking and legal documents for the convenience of users and allow the currency to be uniquely identified. This is especially true for means of payment that have the same name. For example, the American dollar is coded USD, the Canadian dollar is CAD, and the Australian dollar is AUD.

In the vast majority of countries, for the convenience of payments, there are exchangeable monetary units. Usually they are one hundredth of the country's main currency. Thus, the Russian ruble consists of 100 kopecks, and the American dollar – of 100 cents. The names of many small change coins have Latin roots, the basis for them is the word centum - one hundred.

In some states there are more complex systems of subordination of the main and exchange currency units:

In Saudi Arabia, one consists of 20 qirsh, which in turn is equal to 5 halalas.
In Madagascar and Mauritania, monetary circulation is based on the five-fold number system. One ariary is equal to 5 iraimbilanya, and one ougiya consists of 5 khums.
The Sovereign Military Order of Hospitallers of St. John of Jerusalem of Rhodes and Malta has a currency called the Maltese and consists of 12 tari or 240 grains.
In Libya, Tunisia, Oman, Bahrain, Iraq and Kuwait, the means of payment consists of thousands of small change coins.
In Vietnam, Hong Kong, Jordan, China and Macau, the ratio between the main currency and the exchange currency is 1 to 10.

In countries with high inflation, small coins are practically not used in cash and non-cash payments. So in our country the penny has practically gone out of circulation; a similar situation arose in Japan at one time. The return of small change usually occurs during monetary reform in the form of denomination. A recent example is the economic transformation in the Russian Federation in 1998.

The concept of monetary units of account

In some states, special means of payment are being developed and used for making payments by transferring funds between accounts. Cash units of account can only be used in the sphere of non-cash circulation. In most cases, they are entries in registers on electronic or paper media and are valid for a limited time.

In some countries, due to economic instability, surrogate means of payment or foreign currencies may be introduced. They can be used in cash circulation, for which banknotes are issued and coins are minted. Thus, on Liberty Island, in parallel with the Cuban peso, its convertible form is used, and in Myanmar, a special exchange certificate is used.

1.2. Exchange rate

The exchange rate is defined as the value of one country's currency expressed in another country's currency. The exchange rate is necessary for currency exchange when trading goods and services, movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for periodic revaluation of foreign currency accounts of firms, banks, governments and individuals.

Exchange rates are divided into two main types: fixed and floating. The fixed exchange rate is based on currency parity, i.e. officially established ratio of currencies of different countries. Floating exchange rates depend on market demand and supply for currency and can fluctuate significantly in value.

1.3. Foreign exchange markets

The global foreign exchange (forex) market includes individual markets localized in various regions of the world, centers of international trade and monetary and financial transactions. A wide range of operations are carried out on the foreign exchange market related to foreign trade settlements, capital migration, tourism, as well as insuring currency risks and carrying out intervention activities.

On the one hand, the foreign exchange market is a special institutional mechanism that mediates relations for the purchase and sale of foreign currency between banks, brokers and other financial institutions. On the other hand, the foreign exchange market serves the relationship between banks and clients (both corporate, government and individual). Thus, participants in the foreign exchange market are commercial and central banks, government units, brokerage organizations, financial institutions, industrial trading firms and individuals dealing in foreign exchange.

The maximum weight in currency transactions belongs to large transnational banks, which widely use modern telecommunications. That is why foreign exchange markets are called a system of electronic, telephone and other contacts between banks related to transactions in foreign currency.

The international currency market is understood as a chain of regional currency markets closely interconnected by a system of cable and satellite communications. There is a flow of funds between them depending on current information and forecasts of leading market participants regarding the possible position of individual currencies. The largest regional currency markets are distinguished: European (in London, Frankfurt am Main, Paris, Zurich), American (in New York, Chicago, Los Angeles, Montreal) and Asian (in Tokyo, Hong Kong, Singapore, Bahrain ). The annual volume of transactions in these foreign exchange markets is, according to leading central banks, over 250 trillion. dollars The world's leading currencies are quoted on these markets. Since individual regional foreign exchange markets are located in different time zones, the international foreign exchange market operates around the clock.

1.4. International monetary and financial organizations

The main supranational monetary and financial institution that ensures the stability of the international monetary system is the International Monetary Fund (IMF). Its task is to counteract foreign exchange restrictions, create a multinational system of payments for foreign exchange transactions, etc.

In addition, international monetary and financial organizations include a number of international institutions whose investment and credit activities are also of a currency nature. Among them are the International Bank for Reconstruction and Development, the Bank for International Settlements in Basel, the European Investment Bank, the Asian Development Bank, the African Development Bank, the Islamic Development Bank, the Scandinavian Investment Bank, the Andean Reserve Fund, the Arab Monetary Fund, African Development Fund, East African Development Bank, International Development Association, International Fund for Agricultural Development, etc.

1.5. Interstate agreements

To carry out effective international trade and investment between countries, streamline payments and achieve uniformity in the interpretation of the rules for making payments, a number of interstate agreements have been adopted, which are adhered to by the overwhelming number of countries in the world. These include the “Uniform Rules for Documentary Letter of Credit”, “Uniform Rules for Documentary Collection”, “Uniform Bill of Exchange Law”, “Uniform Law on Checks”, “On Bank Guarantees”, SWIFT Charter, CHIPS Charter and other documents .

In general, the nature of the functioning and stability of the international financial system depend on the degree of its compliance with the structure of the world economy. When the structure of the world economy and the balance of forces on the world stage change, the existing form of the international military system is replaced by a new one. Having appeared in the 19th century, the world monetary system went through three stages of evolution: the “gold standard”, the Bretton Woods system of fixed exchange rates and the Jamaican system of floating exchange rates. Let us briefly characterize these stages of the evolution of MWS.

2. GOLD STANDARD SYSTEM

The beginning of the “gold standard” was laid by the Bank of England in 1821. This system received official recognition at a conference held in 1867 in Paris. The “gold standard” existed until the Second World War. Its basis was gold, which was legally assigned the role of the main form of money. Within this system, the exchange rate of national currencies was rigidly tied to gold and, through the gold content of the currency, correlated with each other at a fixed exchange rate. So, if 1 f. Art. was equal to 1/4 ounce of gold, and 1 dollar. USA amounted to 1/20 ounce of gold, then for 1 lb. Art. you could get 5 dollars in exchange. USA (1 troy ounce of gold is equal to 31.1 g of 999 gold). Deviations from the fixed exchange rate were extremely insignificant (no more than +/- 1%) and were within the “golden points” (the so-called maximum limits for deviation of the exchange rate from the established gold parity, which are determined by the costs of transporting gold abroad).

The need to transport gold abroad arose when a balance appeared in foreign trade, which was repaid by equivalent gold transport. At the same time, gold payments had no restrictions.

The varieties of the “gold standard” are: 1) the gold coin standard, under which banks freely minted gold coins (valid until the beginning of the 20th century); 2) the gold bullion standard, under which gold was used only in international payments (beginning of the 20th century - beginning of the First World War); 3) gold and foreign exchange (gold exchange) standard, in which, along with gold, the currencies of countries included in the “gold standard” system, which is known as the Genoese standard (1922 - the beginning of the Second World War), were also used in calculations.

During the First World War and especially during the Great Depression (1929-1934), the “gold standard” system experienced crises. The gold coin and gold bullion standards have become obsolete, as they no longer correspond to the scale of increased economic ties. Due to high inflation in most European countries, their currencies have become inconvertible. The United States became a new financial leader, and the “gold standard” was modified.

The Genoese International Economic Conference of 1922 cemented the transition to a gold exchange standard based on gold and leading currencies that were convertible into gold. Mottos appeared - means of payment in foreign currency, intended for international payments. Gold parities were maintained, but the conversion of currencies into gold could also be carried out indirectly, through foreign currencies, which allowed states that were impoverished during the First World War to save gold.

During the period between the wars, countries consistently abandoned the “gold standard”. The first to leave the “gold standard” system were agricultural and colonial countries (1929-1930), Germany, Austria and Great Britain in 1931, and the USA in April 1933 (having taken upon themselves the obligation to exchange dollars for gold at a price of 35 dollars per troy ounce for foreign central banks in order to strengthen the international position of the dollar), in 1936 - France. Many countries have introduced currency restrictions and exchange controls. At this time, on the basis of the national currency systems of leading countries, currency blocks and zones began to emerge.

A currency bloc is a grouping of countries that are economically, monetaryly and financially dependent on their leading power, which dictates a unified policy for them in the field of international relations and uses them as a privileged sales market, a source of cheap raw materials and a profitable area of application capital.

The purpose of the currency bloc is to strengthen the competitive position of the leading country in the international arena, especially in times of economic crisis. The currency bloc is characterized by the following features: the exchange rate is attached to the currency of the country leading the group; international settlements of the countries included in the bloc are carried out in the currency of the hegemonic country; foreign exchange reserves of the participating countries are stored in the hegemonic country; Treasury bills and government bonds of the hegemonic country serve as security for dependent currencies.

At this time, the sterling, dollar and gold currency blocks were formed. The sterling bloc was formed in 1931. It included the countries of the British Commonwealth of Nations (except Canada and Newfoundland), the territories of Hong Kong, Egypt, Iraq and Portugal. Later Denmark, Norway, Sweden, Finland, Japan, Greece and Iran joined it. The dollar bloc, led by the United States, was formed in 1933. It included, in addition to the United States, Canada, as well as the countries of Central and South America. The gold bloc was created in 1933 by countries that sought to maintain the gold standard - France, Belgium, the Netherlands, Switzerland, and later Italy, Czechoslovakia and Poland joined it. By 1936, due to the abolition of the gold standard system in France, the bloc collapsed. During the Second World War, all currency blocs ceased to exist.

Benefits of the gold standard:

1) ensuring stability in both domestic and foreign economic policies, which is explained by the following: transnational flows of gold stabilized exchange rates and thereby created favorable conditions for the growth and development of international trade;

2) stability of exchange rates, which ensures the reliability of the company’s cash flow forecasts, planning of expenses and profits.

Disadvantages of the gold standard:

1) the established dependence of the money supply on the extraction and production of gold (the discovery of new deposits and an increase in its production led to transnational inflation);

2) the inability to pursue an independent monetary policy aimed at solving the country’s internal problems.

The Second World War led to the crisis and collapse of the Genoese monetary system, which was replaced by the Bretton Woods system.

3. BRETTON WOODS MONETARY SYSTEM

The second monetary system was formalized at the UN International Monetary and Financial Conference, held from July 1 to July 22, 1944 in Bretton Woods (USA, New Hampshire). The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), called the International Bank, were also founded here.

The goals of creating the second MBC were:

restoration of extensive free trade;

establishing a stable equilibrium of the international exchange system based on a system of fixed exchange rates;

transferring resources to states to counter temporary difficulties in the external balance.

The second MBC was based on the following principles:

fixed exchange rates of the currencies of the participating countries to the rate of the leading currency have been established;

2) the exchange rate of the leading currency is fixed to gold;

3) central banks maintain a stable exchange rate of their currency against the leading (within +/- 1%) currency through foreign exchange interventions;

4) changes in exchange rates are carried out through devaluation and revaluation;

5) the organizational unit of the system is the IMF and the World Bank, which are designed to develop mutual monetary cooperation between countries and help reduce the balance of payments deficit.

The US dollar became the reserve currency, since only it at that time could be converted into gold (the US had 70% of the world's total gold reserves). The gold ratio of the US dollar was established: 35 dollars. for 1 troy ounce. Other countries have pegged their currencies to the US dollar. The dollar began to perform on an international scale all the functions of money: an international medium of exchange, an international unit of account, an international reserve currency and a store of value. Thus, the national currency of the United States simultaneously became world money and therefore the second IMF is often called the gold-dollar standard system.

Currency interventions were considered as a mechanism for self-adaptation of the second international financial system to changing external conditions, similar to the transportation of gold reserves to regulate the balance of payments under the “gold standard”. Exchange rates could be changed only when a fundamental imbalance in the balance sheet occurred. These changes in exchange rates within the framework of fixed parities were called revaluation* and devaluation** of currencies.

*Revaluation is an official increase in the exchange rate of the national currency against foreign currencies.

**Devaluation is an official decrease in the exchange rate of the national currency in relation to foreign currencies.

As a country with a leading currency, the USA, after the Second World War, had a constantly negative balance of payments (with the exception of the period of the Korean War in the early 50s). On average, the balance ranged from 2 to 3 billion dollars. However, this did not negatively affect the economic situation of the United States, but only contributed to the expansion of American capital to other countries. Apart from obligations to sell gold, the Bretton Woods system did not have any mechanism for sanctions in the event of the inflationary policy of the leading currency country. The weakness of the dollar only led to an expansion of the monetary base and an increase in foreign exchange reserves in a country with a strong currency, without causing any opposite effects in the United States. Under these circumstances, the United States had practically unlimited possibilities for pursuing its monetary policy based on domestic economic goals.

The second IMF could exist only as long as US gold reserves could ensure the conversion of foreign dollars into gold. However, by the beginning of the 70s. there was a redistribution of gold reserves in favor of Europe: in the 60-70s. The dollar holdings of European central banks tripled and by 1970 amounted to $47 billion. against 11.1 billion dollars. in USA. There are also significant problems with international liquidity, since in comparison with the increase in international trade volumes, gold production was small: from 1948 to 1969, gold production increased by 50%, and the volume of international trade by more than 2.5 times. Confidence in the dollar as a reserve currency is also falling due to the huge US balance of payments deficit. New financial centers are emerging (Western Europe and Japan), which leads to the US losing its absolute dominant position in the world. The paradoxical nature of this system, based on an internal contradiction known as paradox or Triffen's dilemma, is clearly manifested.

According to the Triffen dilemma, the gold-dollar standard must combine two opposing requirements:

1) the issue of a key currency must correlate with changes in the country’s gold reserves. Excessive emission of a key currency, not backed by gold reserves, can undermine the convertibility of the key currency into gold and over time will cause a crisis of confidence in it;

2) the key currency must be issued in quantities sufficient to ensure an increase in the international money supply to service the increasing number of international transactions. Therefore, its emission should far exceed the country's gold reserves.

Thus, there is a need to revise the foundations of the existing monetary system. The crisis of the second currency system lasted 10 years. The forms of its manifestation were: currency and gold rush; massive devaluations and revaluations of currencies; panic on the stock exchange in anticipation of changes in exchange rates; active intervention of central banks, including collective intervention; activation of national and interstate currency regulation.

Key stages of the crisis of the Bretton Woods monetary system:

1)March 17, 1968 A dual gold market was established. The price of gold in private markets is set freely according to supply and demand. According to official transactions for the central banks of countries, the convertibility of the dollar into gold remains at the official rate of 35 dollars. for 1 troy ounce;

2) August 15, 1971 Temporarily prohibited the convertibility of the dollar into gold for central banks;

3) December 17, 1971 Devaluation of the dollar against gold by 7.89%. The official price of gold increased from 35 to 38 dollars. for 1 troy ounce without renewing the exchange of dollars for gold at this rate; the boundaries of permissible exchange rate fluctuations expanded to +/- 2.25% of the announced dollar parity;

5) March 16, 1973 The international conference in Paris subordinated exchange rates to the laws of the market. Since that time, exchange rates are not fixed and change under the influence of supply and demand, contrary to the IMF Charter. Thus, the system of fixed exchange rates ceased to exist.

After the Second World War, six main currency zones were formed:

a) British pound sterling;

b) US dollar;

c) French franc;

d) Portuguese escudo;

d) Spanish peseta and

e) Dutch guilder.

The most stable was the currency zone of the French franc, which exists to this day, uniting a number of countries in Central Africa.

After a long transition period, during which countries could try different models of the monetary system, a new world monetary system began to emerge, which was characterized by significant fluctuations in exchange rates.

The structure of the modern world monetary system was formally agreed upon at the IMF conference in Kingston, Jamaica, in January 1976. The basis of this system is floating exchange rates and a multicurrency standard.

The transition to flexible exchange rates implied the achievement of three main goals:

1) equalization of inflation rates in different countries;

2) balancing the balance of payments;

3) expansion of opportunities for independent domestic monetary policy by individual central banks.

The main characteristics of the Jamaican currency system are as follows:

1) the system is polycentric, i.e. is based not on one, but on several key currencies;

2) the monetary parity of gold was abolished;

3) freely convertible currency, as well as SDRs and reserve positions in the IMF, became the main means of international payments;

4) there are no limits to exchange rate fluctuations. Exchange rates are formed under the influence of supply and demand;

5) central banks of countries are not obliged to interfere in the operation of foreign exchange markets to maintain a fixed parity of their currency. However, they carry out foreign exchange interventions to stabilize exchange rates;

6) the country itself chooses the exchange rate regime, but it is prohibited from expressing it through gold.

7) The IMF monitors countries' policies in the field of exchange rates; IMF member countries should avoid manipulating exchange rates in a manner that would impede effective adjustment of balances of payments or gain unilateral advantages over other IMF member countries.

According to the IMF classification, a country can choose the following exchange rate regimes: fixed, floating or mixed.

The fixed exchange rate has a number of varieties:

1) the exchange rate of the national currency is fixed in relation to one voluntarily chosen currency. The exchange rate of the national currency automatically changes in the same proportions as the base rate. Developing countries usually fix the exchange rates of their currencies against the US dollar, British pound sterling, and French franc;

2) the exchange rate of the national currency is fixed to the SDR;

3) "basket" exchange rate. The exchange rate of the national currency is tied to artificially constructed currency combinations. Typically, these combinations (or baskets of currencies) include the currencies of the main countries - trading partners of a given country;

4) rate calculated on the basis of sliding parity. A fixed exchange rate is established in relation to the base currency, but the relationship between the dynamics of the national and base exchange rates is not automatic, but is calculated using a specially specified formula that takes into account differences (for example, in the rate of price growth).

The currencies of the USA, Canada, Great Britain, Japan, Switzerland and a number of other countries are in “free float”. However, often the central banks of these countries support exchange rates when they fluctuate sharply. That is why they talk about “managed” or “dirty” floating of exchange rates. Thus, the central banks of the USA, Canada and Germany intervene to smooth out short-term fluctuations in the exchange rates of their national currencies, while others change the structure of their foreign exchange reserves.

Mixed swimming also has a number of varieties. First of all, this is group swimming. It is typical for countries that are members of the EMU. There are two exchange rate regimes for them: internal - for transactions within the Community, external - for transactions with other countries. There is a firm parity between the currencies of the EMU countries, calculated on the basis of the ratio of central rates to the ECU with a fluctuation limit of +/- 15%, established since 1993 (before that, the rate fluctuation limit was in the range of +/- 2.25 %). Exchange rates jointly “float” in relation to any other currency not included in the EMU system. In addition, the special exchange rate regime in OPEC countries belongs to this category of exchange rate regimes. Saudi Arabia, the United Arab Emirates, Bahrain and other OPEC countries have pegged their currencies to the price of oil.

In general, developed countries have exchange rates that are in pure or group float. Developing countries usually fix the exchange rate of their own currency to a stronger currency or determine it on the basis of a sliding parity (Table 1.2).

Table 1.2. Exchange Rate Regimes (1995)

Exchange rate mode	Number of countries
Fixed rates, including: To US dollar To French franc To other currencies To currency basket		Argentina, Syria, Lithuania, Iran, Panama, Turkmenistan, Venezuela, Nigeria, Oman, etc. African countries included in the franc area Namibia, Lesotho, Swaziland (South African rand), Estonia (German mark), Tajikistan (Russian ruble). Libya, Myanmar, Rwanda, Seychelles. Cyprus, Iceland, Kuwait, Czech Republic, Bangladesh, Hungary, Morocco, Thailand, etc.
Floating rates Taking into account the specified parameters		Chile, Ecuador, Nicaragua
Adjustable float Free swimming		Israel, Turkey, South Korea, Russia, China, Malaysia, Poland, Slovenia, Singapore, etc. USA, Italy, Switzerland, India, Ukraine, Canada, Philippines, Norway, UK, Azerbaijan, etc.
Mixed swimming To one currency (dollar) To currency group		Bahrain, Saudi Arabia, Qatar, United Arab Emirates Countries of the European Monetary System

Special Drawing Rights (SDRs) play an important role. They are one of the official reserve assets within the Jamaican Monetary System. The second amendment to the IMF Charter, which came into force in 1978, established the replacement of gold by the SDR as the scale of value. SDRs have become a measure of international value, an important reserve asset, and one of the means of international official settlements.

Only IMF member countries can participate in the SDR system. However, membership in the Fund does not mean automatic participation in the SDR mechanism. To carry out transactions with SDRs, the SDR Department has been established within the IMF structure. Currently, all member countries of the IMF are participants. At the same time, SDRs function only at the official, interstate level, at which they are put into circulation by central banks and international organizations.

The IMF has the authority to create “unconditional liquidity” by issuing funds denominated in SDRs for participating countries in the SDR Department. SDRs are also issued when the IMF Executive Board concludes that at this stage there is a long-term general shortage of liquid reserves and there is a need to replenish them. An assessment of this need determines the size of the SDR issue. SDRs are issued in the form of credit entries in special accounts with the IMF. SDRs are distributed among IMF member countries in proportion to the size of their quotas in the IMF at the time of issue. The quota amount for each IMF member state is established in accordance with the volume of its national income and the size of foreign trade turnover, i.e. The richer the country, the higher its quota in the Fund.

The Fund may not issue SDRs to itself or other “authorized holders.” In addition to member countries, the IMF can receive, hold and use SDRs, as well as, by decision of the IMF Board of Governors, adopted by a majority of at least 85% of the votes, countries that are not members of the Fund, and other international and regional institutions (banks, currency funds, etc.) having official status. At the same time, their holders cannot be commercial banks and individuals.

The functioning of the Jamaican currency system is inconsistent. Expectations associated with the introduction of floating exchange rates were only partially fulfilled. One reason is the variety of options available to participating countries under the system. Exchange rate regimes in their pure form are not practiced over a long period. For example, the number of countries that pegged their currencies to the dollar for the period 1982-1994 decreased from 38 to 20, and to the SDR - from 5 to 4. It should be noted that if in 1982 only 8 countries carried out independent floating, then in 1994 there were already 52 of them. Countries that announced the free floating of their currencies maintained the exchange rate through interventions, i.e. instead of pure swimming, controlled swimming was actually carried out.

Another reason is the US dollar maintaining its leading position in the Jamaican currency system. This is explained by a number of circumstances:

a) since the time of the Bretton Woods currency system, significant reserves of dollars have remained among individuals and governments around the world;

b) alternative to the dollar, universally recognized reserve and transaction currencies will be constantly in deficit as long as the balance of payments of countries whose currencies can claim this role (Germany, Switzerland, Japan) have stable surpluses;

c) Eurodollar markets create dollars regardless of the state of the US balance of payments and thereby contribute to supplying the world monetary system with the necessary means for transactions.

The Jamaican monetary system is characterized by strong fluctuations in the exchange rate for the US dollar, which is explained by the contradictory economic policies of the United States in the form of expansionary fiscal and restrictive monetary policies. This fluctuation in the dollar has been the cause of many currency crises.

Book

Semilyutina Natalya Gennadievna - Candidate of Legal Sciences, Deputy Head of the Financial Markets Development Department of the Legal Department of the Moscow Interbank Currency Exchange (MICEX) - one of the leading financial exchanges in Russia

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