Types of exchange rates, their characteristics and methods of regulation. What is currency? Currency of Russia

Term "currency" is used in three ways:

1. Currency is the monetary unit of that particular country.
2. Currency- these are foreign cash and units of account.
3. Currency- these are international units of account such as “euro”, SDR, etc.

Since the task is to promote development, any national currency must have external and internal convertibility, that is, the ability to be converted into the currencies of other states. Convertibility determines the degree of liquidity of a currency in international financial markets. Thus, currency convertibility characterizes the quality of the currency. Depending on the degree of convertibility, three groups (classes) of currencies can be distinguished.

1. Freely convertible currency(SCV). Such currency is freely and without restrictions exchanged for other foreign currencies, i.e. hard currency has full external and internal convertibility.

The scope of the exchange of hard currency applies to both current operations (operations related to the export and import of goods and services) and operations related to the movement of capital, for example, obtaining external loans or foreign investments.

Thus, we can say that the currency of a country is freely convertible if the law does not provide for any restrictions when carrying out any transactions with it.

The American dollar (USD), British pound sterling (GBF), Swiss franc (CHF), etc. are recognized as freely convertible currencies.

2. Partially convertible currency(PCI). Such currencies include the national currencies of those countries in which currency restrictions are applied for residents, as well as for certain types of exchange transactions. For example, the Russian ruble is partially convertible.

3. Non-convertible (closed-end) currency(NKV). This is a national currency that functions only within a given country and is not exchanged for foreign currencies.

The currency category is determined by the International Monetary Fund.

In addition, in international trade, currency units are used that exist only in non-cash form - clearing currencies.

Clearing currencies- these are currency units of account that exist only in non-cash form and are used only by the countries participating in the payment agreement when making mutual payments for goods and services supplied.

In the world economy there is the concept of reserve currencies.

Reserve currency— these are the national monetary funds of the leading countries participating in world trade, which are used for international settlements in foreign trade transactions and in determining world prices.

Historically, the British pound sterling initially played the role of reserve currency. This was natural, because industry and trade were actively developing in England. In addition, England had many colonial possessions, where trade exchange was based on the pound sterling. However, subsequently, due to the rapid development of the United States, its national currency (the dollar) began to rapidly displace the pound sterling, serving as the main reserve currency. The role of the reserve currency (USD) was finally assigned to the US dollar in 1944 at the Bretton Woods Conference.

Currently, the US dollar is the world's main reserve currency. Most international settlements are carried out in this currency, and world prices for many product groups are fixed. In addition, all world statistics are based on USD.

The exchange rate has a great influence on international economic relations. It should be noted that at present the exchange rate can be greatly influenced by the monetary policy of the state. In order to maintain the national currency, the central bank of any country can conduct foreign exchange interventions.

Currency interventions- this is the impact on the exchange rate of the national currency through the purchase or sale of a significant amount of foreign currency by government agencies. For example, the Central Bank of Russia (CBR), in order to strengthen the ruble, can sell part of its foreign exchange reserves on the foreign exchange market.

Exchange rate

Currency parity

Money serves as measures of value and means of circulation only within the relevant state. Outside of these functions, purchasing power is determined by comparison with foreign currencies, and the external value of money is expressed in units of foreign currencies. When determining the external value of money, the following problems arise: determination of currency parity by government agencies; formation of rates in foreign exchange markets.

Currency parity- this is a legally established relationship between two currencies, which is the basis of the exchange rate. In modern conditions, currency parity is established on the basis of special drawing rights SDR. The SDR is an international collective settlement currency used by member countries of the IMF.

- the relationship between the monetary units of different countries according to their purchasing power to a certain set of goods and services - certifies that on the world market the same product should have the same price in all countries if it is calculated in the same currency. But on the world market, goods are sold and bought for different money, so there must be a certain relationship between currencies. This relationship is expressed by the Kessel formula:

For example, 1 dollar = 1.5 euros, or 1 euro = 0.75 dollars, which means you can buy the same amount of useful products for both 1 dollar and 1.5 euros.

Both parities are used to set official exchange rates.

Exchange rate is called the ratio between two currencies or is the price of one currency expressed in terms of another currency.

The nominal exchange rate is the actual price of one currency in terms of another currency. For example, the price of 1 US dollar on the Russian market in January 2002 was equal to 30 rubles, and the price of one ruble was approximately 0.33 US dollars.

There are the following types of exchange rates:

• fixed exchange rate- this is the official relationship between two currencies, established by law;
• floating— established during trading on the foreign exchange exchange;
• cross course- this is the relationship between two currencies, which follows from their exchange rate in relation to a third currency;
• current- this is the rate of cash, i.e. cash transaction. Settlements are made on it within two days;
• forward or forward transaction rate, is the rate for settlement of a foreign exchange (forward) contract a certain time after the conclusion of the contract.

The value of a currency is expressed in price, which is determined by the value of the currency in relative units of another currency - national or foreign. The price of foreign currency is called exchange rate.

To designate currencies when concluding transactions, they are used ISO-currency codes. The code for an individual currency consists of three letters: the first two letters indicate the country, the third the currency. Examples of ISO codes for some currencies are presented in the table.

Exchange rates are displayed by the pair of currencies involved in the transaction, such as GBP/USD or USD/CHF, where GBP/USD shows how many US dollars are contained in 1 British pound (how many US dollars can be bought with 1 British pound) and USD/CHF shows , how many Swiss francs are contained in 1 US dollar (how many Swiss francs can be bought for 1 US dollar).

A currency that is bought or sold, i.e. traded, is called traded currency, and the currency that serves to evaluate the traded currency is currency quotes. Thus, when displaying a currency pair, the first of the specified currencies is the traded currency, and the second is the quote currency.

Typically, when denoting an exchange rate, the foreign currency acts as the traded currency, and the local currency acts as the quotation currency. This quote is called straight, or assessment: the price of a certain amount of foreign currency is expressed in variable units of the national currency. This quotation system is used, in particular, in Switzerland, Japan, and Canada. For example, the quote USD/JPY106.4 shows that 1 US dollar contains 106.4 Japanese yen.

Indirect (reverse) rate quote is the price of a standard unit of local currency expressed in variable units of foreign currency.

The system of indirect quotations of their currencies, in particular, is used by the UK and Australia (GBP/USD and AUD/USD). Indirect quotation is also used when calculating the euro exchange rate (EUR/USD).

For example, the quote EUR/USD1.23 shows that 1 euro contains 1.23 US dollars.

In interbank currency trading, the bank quoting the currency usually quotes the buying and selling rates. The purchase rate is designated as the Bid rate, and the selling rate is designated as Offer(Ask).

With direct quotation, the Bid rate is the rate at which banks buy the traded (foreign) currency and sell the national one. The Offer(Ask) rate is the rate at which the bank sells the traded currency and buys the national one. The amount by which the Bid rate differs from the Offer(Ask) rate is called spread.

The largest volume of transactions carried out in the foreign exchange market falls on spot transactions. Transactions spot refers to all currency transactions for which payments are made on the second banking day after the conclusion of the transaction. If this day falls on a weekend, then the execution date (value date) becomes the next business day. The rate at which spot transactions are concluded is called spot rate.

An example of calculating the value date is shown in the table.

Cross course is the ratio between two currencies, which is calculated based on their exchange rate relative to the rate of a third currency. As a rule, when calculating cross rates, the third currency is the US dollar. This is because the US dollar is not only the primary reserve currency, but also the transaction currency in most foreign exchange transactions.

As an example of using cross rates, you can calculate the EUR/YPJ rate through the EUR/USD and USD/YPJ rates:

Currency quotes

The process of setting the exchange rate is called currency quotation.

Types of quotes:

Depending on the location of the exchange and the country where the currency transaction is made, there are:

1. direct currency quote. With it, the cost of a unit of foreign currency is expressed through a certain amount of the national currency.

• 1 unit currency = to units national currency.
• 1 dollar = 31 rubles.

If the transaction is made in any country;

2. indirect currency quotation. With it, the cost of a unit (i.e. 1 piece) of the national monetary unit is expressed in a certain amount of a foreign monetary unit.

• 1 unit of national currency = X units of foreign currency.
• 1 ruble = 1/28 dollars.

The same quote, depending on the country where the transaction is made, may be direct and indirect.

The exchange rate is quoted in two directions:

• buyer's rate— in accordance with this rate, the bank will buy foreign currency in exchange for national currency;
• seller's rate— in accordance with this rate, the bank sells foreign currency in exchange for national currency.

With a direct quotation, the seller's rate is usually higher than the buyer's rate.

With an indirect quotation, the buyer's rate is higher than the seller's rate.

If the quotation of two currencies is carried out by settlement through a third currency, then such a quotation is called a cross rate.

Currency convertibility is the ability to exchange national currency for foreign currency. Happens:

• full convertibility— exchange without restrictions (dollar);
• incomplete convertibility— exchange is limited (ruble).

There are no restrictions on the domestic market (purchase of foreign currency in rubles).

When dealing with relationships outside the country, the Central Bank sets restrictions.

The Italian word "currency" came into the Russian language in the middle of the 18th century. At first it meant “payment of a bill,” but already in the middle of the 19th century it acquired a new meaning - a state backed by gold." In this article we will tell you what currency is.

General information

Banknotes, coins, treasury notes, which are legal tender and form the basis of the state's monetary system, are called currency. In everyday vocabulary, this term is most often used as banknotes of a foreign state. To distinguish these two concepts, the following designations are used:

• a closed currency operates within one state;
• convertible currency can be exchanged for the currency of another country.

Types of currencies

Every country has a national and foreign Russia- rubles that are in circulation, withdrawn from circulation, funds in accounts in banks of the Russian Federation and abroad, which are recognized as a means of payment. The national currency is used for domestic payments, and the foreign currency for international payments. The second represents money that is in free circulation or withdrawn from it, but is a means of payment in a foreign country or group of countries. For international transactions, currency exchange is required based on the established exchange rate. This is the price of one currency expressed in monetary units ah another state. The rate is set based on supply and demand in the foreign exchange market. The goods on it are monetary units: rubles, dollars, yen, and so on. The rates of national and foreign currencies change in different directions. A fall in the value of the domestic currency leads to cheaper exports and higher prices for imports.

Stability of rates

According to the degree of stability, courses are divided into strong and weak. Hard currency is backed by gold reserves and is resistant to the value of other monetary units. The strong ones are characterized by the market price exceeding the nominal value. A weak currency is less stable to the exchange rates of other countries' currencies. Its market rate is below par. In practice, the same monetary unit is strong and weak in relation to the currencies of different countries.

The official exchange rates of foreign currencies to the ruble are set by the Central Bank every working day. They come into force on the next business day after signing and are valid until the next order. These data are published on the Bank of Russia website. However, banks have no obligation to buy or sell currency at this rate. For legal entities and individuals, such information is for reference only. To find out the exact exchange rate, you will have to use a currency converter. It can be found on the website of any bank.

Characteristics of monetary units

The conditions and sales volumes largely depend on the restrictions set by the state and characterized by the convertibility parameter. This is a certain financial regime that allows, during foreign economic transactions, the exchange of a national currency for a foreign one. According to this indicator, currency in banks is divided into three groups.

Types of convertibility

Freely convertible currency (FCC) is freely exchanged for monetary units of other countries, as well as for means of payment that are used for settlements in international transactions. In world practice, the main characteristics of turnover are:

• absence of any restrictions on exchange;
• availability of a flexible course.

SVKs are used for transfers in the international payment system (CLS). This allows individuals and entrepreneurs to conduct transactions without exchanging national currency for any convertible currency.

Having dealt with the issue of SVK, we move on to the question of what a partially convertible and closed (non-convertible) currency is.

The first is a currency with certain restrictions on turnover in a particular region, for certain persons or for several types of transactions. Non-convertible is a monetary unit that, for economic or political reasons, the state has prohibited from being exchanged for banknotes of another country.

Within the framework of partially convertible currency, external and internal turnover are distinguished. The first refers to the ability of foreign countries to freely transfer national currency abroad. Domestic implies the right of citizens and enterprises to buy foreign currency for transactions. To introduce convertibility, the state must pass appropriate legislation.

Advantages of SVK

Having dealt with the question of what a freely convertible currency is, we move on to the question of what advantages this gives the state. Today, free turnover is determined by the economic power of the country. SVK allows the state to create favorable conditions for improving the balance of payments, indicates economic freedom, promotes the development of international competition, as a result of which enterprises are forced to increase production efficiency.

In such conditions, organizations can receive loans in banknotes of a foreign state. Foreign economic activity is stimulated: by reducing currency risk, exports and imports of goods increase. But at the same time, rising import prices lead to devaluation of the national currency. The introduction of an internal control system involves the state in the system of international division of labor, increases the influx of foreign capital, and also simplifies the procedure for conducting transactions.

Conditions for the formation of turnover

These include:

• meeting demand with supply in the market;
• availability of the required amount of liquid assets;
• creation of a reserve fund;
• presence of a balanced balance of payments;
• if there is one, it should not exceed 5% of GDP;
• carrying out a reasonable pricing policy without distortions, but taking into account the laws of value;
• pursuing a reasonable credit policy with a rational interest rate and targeted financing;
• introduction of effective antimonopoly laws with the aim of demonopolizing the economy.

World currencies

Due to liquidity and influence on the financial market, seven monetary units are generally classified as world currencies:

• Euro;
• U.S. dollar;
• Canadian, Austrian and Swiss dollars;
• Japanese yen;
• Swiss frank.

A larger number of contracts are concluded in these currencies and they are most often traded on the Forex market.

The main features of world banknotes:

• high liquidity;
• solvency;
• exchange rate stability.

They are used to create gold and foreign exchange reserves. World currency rates are interconnected. When the price of one falls, the value of the other increases. And vice versa.

Most European countries have their own currencies and central banks that regulate monetary policy. In 1996, a monetary union was formed, which by 2014 already unites 18 countries. In the Eurozone, control is exercised by the European Central Bank. The currency in force in this territory is the euro. Since 1999, the euro has been used for non-cash payments. Since 2002 - for cash payments. Today, the euro competes with the dollar in terms of turnover and shares in the creation of gold and foreign exchange reserves.

Another very popular world currency is the US dollar. It is a means of payment in more than twenty countries around the world. For the last half century, the dollar has been one of the sources for creating a reserve currency. Immediately after World War II it replaced

The yen is used for transactions in Asian countries. There are more payments in the national currency than in the dollar or euro.

Approximately 5% of foreign exchange reserves are formed in pounds sterling. The national currency of Great Britain is one of the most stable in the world.

The Australian dollar is very popular on the Sydney Exchange.

Most often used for settlements on commodity exchanges when trading sand, metals and energy resources.

Currency of Russia - SVK

In order for the ruble to become fully convertible, it must be backed by a material equivalent. In theory, the Russian economy, estimated independent experts at a high level, could become such an equivalent. But in practice, a more realistic option is to provide the ruble with the state. Launching a convertible currency that is not backed by government obligations, as was the case with the dollar, will no longer work. The euro as a world currency still holds a conditionally state status.

Providing the status of SVK by the state implies that Russia will have to pay with material resources upon demand. That is, the supply of rubles in the world should not exceed the material support of the country. Given the corruption at all levels of government, this is quite difficult to guarantee.

However, the Russian government is taking all steps to give the ruble the status of the SVK. Recently, the Bank of Russia announced its intention to completely switch to the ruble. Other credit institutions, including Sberbank, have also “thought about this”. Currency Russian Federation may soon be included in the list of Continuous Linked Settlement Bank. It uses SVK for calculations. The Bank of Russia has already submitted a corresponding application to CLS, but there is no response yet.

Summary

Issued by one country, but used as a means of payment in other countries, indicate a high level of development of the state. Ideally, banknotes and coins should be supported by the legal status of the country or its national wealth, and be freely exchanged for banknotes of other countries. This is what a currency is, which is freely convertible throughout the world.

Currency is a monetary unit that can perform the function of money in the exchange of goods. This is speaking in a more general sense. If we consider in a narrow sense this question, then currency in this case will be called a certain type of banknotes, which is a participant in international economic relations. The types of currencies are quite diverse.

All about currencies

There are a large number of types, because science tries to classify everything for more convenient handling of all the concepts that relate to it, and to use this knowledge in practice. After all, understanding the mechanisms of currency formation and turnover cannot be considered in isolation from the theory, of which classification is a part.

What is currency?

As mentioned earlier, currency is what participants in an economic or trade process use to pay. Each of them has its own value, which determines the success of the state’s economy. Naturally, there is no need to say that only currency does this. But it is important to understand that it is the value of the exchange rate that determines the success of the economy in the international arena.

Relationship between standard of living and currency price

However, the low value of a currency does not always have a negative impact on the standard of living. Sometimes even too much expensive currencies, such as the dollar, do not help ordinary people live. And this can be seen in the example of American society. Yes, the middle class prevails there. But this does not mean anything, since they achieve such a financial position through very intensive work.

At the same time, take such a well-known country as Belarus. This state is considered a country with a fairly high standard of living in the post-Soviet space. But if you look at the exchange rate of the Belarusian ruble, you can’t even say that they don’t have any special problems with their standard of living. Naturally, citizens of any country have their own economic problems. But the determining factor is not the exchange rate or the economic situation, but the ability of citizens to adapt even to bad conditions.

Currency functions

Regardless of what types of currencies there are, they perform the following functions:

• The currency acts as a base for the price scale. What does this mean? The point is that you need to determine the value of each product. The price for it is a value. But how can you determine what price to set? This is precisely the purpose for which currencies are used.
• Legal tender. It makes no difference what types of currencies are used on the territory of the state; each of them is a legal means of payment. As a rule, prices in other currencies are not indicated. If they are placed on price tags, then they perform an indicative function rather than a direct calculation one. As for foreign currencies, the state can independently establish the degree of turnover of a particular currency in it.
• A means of ensuring settlement between states. By understanding the value that a certain currency has, it becomes clear at what price imported goods can be sold. Its well-being depends on the export of certain goods, since import prices are usually much higher. Accordingly, it is much easier for the country exporting the goods to stabilize the economy. At the same time, a truly valuable product must be exported. Then there will be no difference which types of currencies are involved in circulation, since the economy will still be strong.

When can a currency be a player?

Everything is very clear, isn't it? It should be noted that if some function is not performed, then the currency cannot exist in the form that it can. It must be a player not only in its own market, but also in the external one. Still, the external often determines the internal. And the key to the success of any country is the correspondence of these two indicators. Because in the Soviet Union, the ruble type of currency had a very high price. But the economy still stagnated, after which it completely collapsed.

Classification of exchange rates

The exchange rate is the price at which it can be bought on an international exchange. Naturally, we need to consider the types of exchange rates. These are not types of currencies based on exchange rate stability, but a completely separate classification. Everything is clear with that parameter: currencies can be stable and unstable.

The first type is an economically profitable currency, regardless of its exchange rate, since stability is sometimes better than quantitative indicators. An unstable currency is a rather bad option, which is constantly changing. It can either jump up sharply or its quotes can fall down. And here you can never guess which option will work. Banks do not want to work with such currencies. And people somehow don’t want to pay with unstable currencies, which makes the latter become even weaker. After all, currency also depends on the trust of the population.

Types of exchange rates

Now let's move on to looking at the types of courses themselves. This classification is divorced from the currencies themselves. The concept of a course and what they are are simply considered.

1. A fixed exchange rate is one that is directly established by law. It doesn't change depending on how they want to sell it. This is the rate that is included in the country’s budget and does not change for a certain period of time. It’s not for nothing that this type of exchange rate is called fixed.
2. A floating exchange rate is one that is set directly by the foreign exchange exchange. A floating exchange rate is characterized by variability. In Russia, the floating exchange rate is set by the Moscow Currency Exchange, which is directly subordinate to the Central Bank of the Russian Federation.
3. Cross course. This is the direct relationship of one currency to another, based on a third currency. For example, at the time of writing, the cross rate for the hryvnia and the ruble is 1:3 based on the dollar. This course also has its advantages. So, you can find out what the current exchange rate is without fixing. This is an operation that is carried out by the main bank of the country to adjust the exchange rate of the currency to the dollar or to any other.
4. The current rate is the value that is used as the price of a particular currency. It lasts for two days, after which it changes. However, it may remain at the same level. It doesn't happen once at a time.

For an ordinary person, another classification is clear. This is buying and selling. But here everything is clear. One currency is bought and the other is sold. In exchange offices you need to look at the currency purchase rate. Selling is usually cheaper, although there are exceptions. In general, what is sold or bought is very relative. It all depends on what reference point is used.

There are a lot of national currencies. Some countries refused to introduce their own currencies in favor of international ones. They will not be considered here. After all, everyone already knows international currencies. One of these is the euro, which is a fairly expensive currency. But let's take a closer look at national currencies and what they are.

1. Ruble. This is a currency that is actively used in Russia and in those countries or regions whose status is uncertain. For example, rubles are used in the territories of the DPR or LPR, which show their loyalty to Russia, or the authorities that seized them at least show this.
2. Hryvnia. This is the Ukrainian currency, which was introduced in 1996 after the end of the crisis. Despite the fact that this currency was then worth as much as half a dollar at that time, the standard of living at the moment in this country is much better. However, the exchange rate is now less happy - 25 hryvnia to one dollar. Although this is not to say that everything is completely bad. As they said, the success of a country’s economy is determined not by what course it has, but by how smart the people there are. Unfortunately, this cannot be said about everyone. But those who suffer over the course and do not want to adapt to ensure the same standard of living are simply wrong.
3. Dollar. In principle, this currency can be called national, since it is used as a settlement currency only in the United States. AND this country is an example where a high exchange rate does not improve the standard of living of ordinary people. Yes, they all drive cars there. But this provoked mass obesity. What standard of living can we talk about if a huge number of people suffer from a disease that causes heart attacks, strokes and diabetes?

Naturally, national currencies much bigger. But this list is also quite good. Its value lies in the fact that, first of all, the emphasis is placed on our native currencies, which are understandable to everyone and using an example to explain what and how it works. We have already discussed what currency is - the concept and types (partially). Now we need to think about the different types of currencies that are exchanged.

Types of currencies in exchange offices

An exchange is the sale of one currency and for that money the purchase of another. Everything is very simple, this mechanism is proven. But what types of exchange currencies are there? Not everyone knows this question. Well, let's arrange a little educational program and understand what exchange currencies are. After all, nothing allows you to learn a topic like classification, right?

Freely convertible

In general, the types of currencies according to the method of exchange can be different. Which ones exactly? In particular, we will consider the types of currency convertibility that can be exchanged (that is, converted, these words are synonyms) with one another. The first type is freely convertible. As a rule, these are currencies that do not have a high enough exchange rate and cannot negatively affect the country’s economy. After all, what is bought becomes more expensive. It's clear. It turns out that if you give the opportunity to freely convert the dollar, this could end up strengthening it even more, which could worsen the economies of other countries.

Partially convertible

The dollar is a partially convertible currency due to the fact that the currency is in value, but its too active turnover can lead to a deterioration in the state of the economy of a particular country. In the case of countries with a high dollar exchange rate, this can end very sadly. To prevent this, the authorities place restrictions on certain types of foreign exchange transactions. And this is best shown with the dollar.

Non-convertible

It happens that some countries do not allow their currencies to be used in other countries at all. This is not exactly good in our globalized society, but that's what they do. An example is not far away - the Soviet Union. There, the currency was inconvertible, which negatively affected the economy of this country. That is why the ruble was then called wooden. Most likely, this may still be the case, although it is better at the moment. A fairly large number of people calmly go and exchange their rubles for dollars, and everyone does quite well.

Transactions with currency

Types of currency transactions are also quite an important topic for discussion at the end of this article. There are two types of possible operations:

• Conversion, that is, exchange. This is especially true for topics such as types of foreign exchange transactions. Exchange is the primary means by which the value of a currency can be secured. The price at which they are willing to exchange it means a lot. In this aspect, the Russian ruble is not a very good example, since to buy a dollar, you need to pay almost, and in some exchange offices, more than 70 rubles. This is quite a high price. Even Ukrainians are ready to pay three times less for a dollar. Although they are very close to Russia.
• Loans. This is what else they like to do with currency. The types and classification of currencies do not matter when making a loan. Almost. In fact, there is some role, but it is quite insignificant. After all, loans can be issued in different countries and between different states in a wide variety of currencies. But there are only three main ones: national, dollar and euro.
• Calculation. This point is also important. After all, this is the main operation that you and I perform.

We figured out what types of currencies there are and what you need to know about exchange rates and types of transactions that can be performed. This information can be used by you both for general education and to ensure a normal life. There is one tip here that you might have picked up on. He is very helpful and constructive.

An international currency is an existing monetary unit that is used to conduct most international currency transactions and payments. In addition, it can be used as a reserve monetary system, that is, it can serve as an investment asset. The presence of such monetary standards greatly simplifies the functioning of the interstate economy.

It becomes possible to carry out payments and purchases without the need to exchange currency every time. In addition, it becomes possible to establish fixed prices for goods that are produced and sold in countries belonging to the region where there is a single interstate monetary unit. Today, the main international currency options are the following:

• U.S. dollar;
• Euro;
• GBP;
• Japanese yen.

In addition, since 2009 the Swiss franc has been used as the international currency. However, it has not yet reached the level of the first four. Another concept that came into use at the same time as “international currency” is “international unit of account.” Its peculiarity is that it is an artificial supranational financial system, a form of world money. Its purpose is to measure the requirements and obligations between states. The idea of ​​​​introducing such a form of money appeared back in 1944, and the first such form of money was supposed to be the bankor. Its exchange rate was determined in relation to gold. However, this proposal was not implemented.

Today, this artificial form of money is the SDR. It acts as a settlement form for the International Monetary Fund. It is also used by various international monetary and financial organizations. The cost of such a unit is directly affected by the exchange rate of world currencies.

Existing world currencies

The world currency, the US dollar, received the status of an international and reserve unit in the middle of the 20th century. This became possible thanks to the fixed exchange rate that distinguished it at that time. This situation led to the recognition of the dollar as the global financial standard. This trend has continued to this day. An international currency transfer is easiest to perform in this currency; almost 60% of the total volume is carried out in this monetary system. The dollar exchange rate is not significantly affected by economic downturns or financial instability. The exchange of government currencies for dollars is possible in almost all corners of the world.

Since 1999, a new world unit has appeared on the world stage - the euro. It replaced the previously existing payment form of the European Union - ECU. In addition, the euro is the second most popular reserve standard in the world. The euro owes its rapid rise as a global currency to the German mark, from which it inherited a share of reserves and settlements. The euro exchange rate, like the dollar exchange rate, remains stable, which other European money cannot boast of. A significant advantage for the entry of the euro into the world market was the fact that many EU countries not only began to use it, but also assigned it state status.

International currency units such as the pound sterling and the Japanese yen are not as popular, serving as the main monetary standard for interstate payments only in a certain region. The past centuries were marked by greater importance of the yen, while the pound remained in last position.

However, recently the situation has changed dramatically. The yen practically lost its global status, and the pound sterling began to reach new levels.