As you know, between the currencies of different countries under the influence of supply and demand sets the course of buying and selling.However, the formation of the exchange rate is carried out not only under the influence of market forces - in this case, the course would be too unstable.The base value of the currency ratio determines the so-called parity - is the rod that holds back progress in the foreign exchange market within reasonable limits.The fact that it is, we'll discuss in this article.
To get started is to say that in the understanding of non-economic parity - it is full equality of position (for example, regarding the parity of power arms, position in the international arena, and so on).It is obvious that the foreign exchange market on the concept of "parity" to mean "equivalence" can not be used, because in the world there are two currencies at the same cost.Therefore, it is assumed that the exchange parity - is defined at the legislative level the basic values of the ratio of the two currencies, which is built and the exchange rate, which, in turn, can change under the influence of market forces, but progress within established control.Identifying and legislative establishment of currency parities is one of the most important stages of the formation of the monetary system of the state and carried out under the influence of both internal and external factors.
There are various methods of forming currency parities.Previously, the basis for determining the relationship between the currencies of different countries were volumes of gold (later - zolotodollarovyh) treasury reserves.However, the crisis of the seventies showed that gold and US dollars more are unable to perform the functions of the global equivalent, as gold at that time was essentially a commodity, not a form of money, and the dollar was just do not ensure that it was clearly demonstrated during the presentation of FranceAmerican currency to be exchanged for gold.That is why today the exchange parity determined by the ratio of existing Special Drawing Rights - an artificial IMF and the World Bank Group currency, which gives the right to a State to receive credit for it.Number of SDRs owned a country is determined by its quota when joining the IMF (calculated based on the number of population, indicators of natsschetov, position on the world market, and so on), as well as an annual membership fee to the treasury of the organization.
One interesting theory, but difficult in practice feasible ways to find the relation between the currencies of different countries is to define such thing as purchasing power parity.This method is finding the ratio between the prices of identical products in the two countries.So, one of the most well-known types of PCB is the "Big Mac Index", which is as a private dividing the value of the world famous hamburger at McDonald's restaurants in different states.Thus, the purchasing power parity - a measure which, on the one hand, shows the difference in the real purchasing power of the currency, but on the other hand, does not account for these differences between national economies, as the cost of resources, wages and so on.As is known from the time of Ricardo, the difference between the real value of the goods are the basis for determining the comparative and absolute advantage, and the theory of the PCB suggests that the real value of the product is the same in different countries, that refutes the theory of Ricardo, proven in practice.Thus, today legislatively defined parity - is the only way to more or less adequate control of national monetary systems.
