international monetary relations transactions involve two or more countries, the main element of which is the currency that is the estimated cash flows.The government of any country is free to decide what form of cooperation with foreign countries to choose.
Functioning of funds in the global financial market is inextricably linked with this notion, as the international currency relations.They are considered depending on the national monetary system of the state, since conditions vary from aircraft.So, back to the most important elements - currency.It is of several types:
- partially convertible;
- freely convertible;
- nonconvertible.
Under current conditions for around 209 types of currencies, of which only 27 are considered to be freely convertible.That is, it can be used in absolutely all transactions in the global financial markets and exchange for another currency in any country without restriction.For example, such is, of course, the US dollar, the Japanese yen, as well as the currency of the United Kingdom, Germany and so on.
If we talk about the Russian ruble, it has a partial convertibility.That is, the government imposes a limit on the exchange of this currency, by setting a certain foreign, which you can freely change the ruble.Moreover, such restrictions are maintained and controlled by certain normative acts of the current legislation.
international monetary and settlement relations can not be carried out using non-convertible currency, as it is in free circulation only in the territory of the country, which is a national.A clear example is the domestic currency, because until 1992 the ruble can not be exchanged for foreign currency.
role of gold in the international monetary relations
As we know, at present, most countries abandoned the gold exchange standard.If earlier as a settlement agent for international agreements could act and precious metals, the current global market recognizes only hard currencies.Currently, these include the US dollar, the Japanese yen and the euro.Economists believe that in the next decade, the dollar may give way to a leading position, since the last crisis has undermined public confidence in other countries.
Despite the fact that gold is no longer directly exchanged for goods, while prices in the terms set by the government is not completely out of circulation was not pushed.Of course, consider precious metals, high-grade money is impossible, as a means of payment function is not performed.But there is the gold market, where it is possible to make its exchange for hard currency.
international monetary relations provide for a operation in which considerable importance is gold.After all, in many situations it is a guarantee of the return of international loans, a certain measure of prosperity.But as an exception, and means it performs the calculation for different States.Thus, we can say that the precious metals are taking a passive role in the movement of capital in any country, but at the same time is a reserve fund for fear of unexpected situations.
popularity of gold reserves increased during the economic crisis, especially global scale.When the exchange rate is changing quite dramatically, and projections differ from reality, the question arises of how to organize international monetary relations, so that each side was profitable.Most states are actively replenishes gold reserves, as more reliable than this extraordinary world currency does not exist.
