word "par" came to Russia from Latin and means "equality".It has many meanings in various fields of human activity, but today consider only meaningful role in financial and economic sphere.In particular, you will learn what the parity price and foreign exchange.
In the first case, it is equal to the ratio of the value of different types of products.Here the basis of a base, where the prices of goods are established on the principle of equivalence, which is identical to the rate of profit.However, this figure will be sure to continue, if the balance in the dynamics has insignificant deviations or remain unchanged.Observance of these parameters is the main economic condition for a balanced and proportionate development, ensuring comparability of the degree of efficiency in terms of profitability.In addition, knowing exactly what parity, all partners in the market believe the conditions of implementation of the expanded reproduction.
Currency parity - the ratio between two different currencies, which is set strictly by law.Equilibrium is the basis of the international exchange rate deviating from the intended balance.Until 1978, it was determined the gold content.Once there was a regular meeting of the participants of the specialized Monetary Fund, the basis of calculation declared the so-called drawing rights.This is a special type of equivalent, which is manufactured using only the IMF and central banks across the state for intergovernmental payments.
In addition, in 1979, was created a monetary union of the European countries, captures all the obligations provided for by the legislation of the EEC (European Economic Union).He should explain to all new entrants, what parity of currency transactions, save it in a strictly defined limits, as well as to avoid deviations of mutual market rates by the agreed limits.This applies to virtually all the known world currencies.For example, so-guarded parity against the dollar or the pound against the euro.
It is worth noting that the total number of factors that influence the currency parity, may reach several tens.All of them are psychological, structural, economic, legal or political.The most important of them: government regulation, interest rates, the state of the national income and the balance of trade, the expected rate of inflation and the money supply and its value.In all cases, the fundamental is the GNP (gross national product) of the States participating in the exchange of international scope.
question of what is the parity of currency transactions, are still considered to be quite interesting and open, so despite the fact that the recent developments in this regard have been made over thirty years ago, the very balance is maintained until now.Although the constant threat of the crisis may be forced to reconsider the base in the near future.
