Modern currency relations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

As the world economy globalizes and internationalizes, international flows of goods, capital, services and loans are growing. Currency relations are social interactions that accompany the implementation of operations related to the functioning of currencies in the course of the interstate exchange of goods, services and information.

Their subjects are:

Residents:

• natural persons (citizens of the Russian Federation);
• foreign citizens and stateless people permanently residing in the Russian Federation with a residence permit;
• legal entities created in accordance with the laws of the country;
• branches, representative offices and other subdivisions of residents located outside the Russian Federation;
• consular offices, diplomatic missions of Russia outside of Russia;
• RF, its subjects and municipalities.

Non-residents:

• non-resident individuals;
• legal entities located outside the Russian Federation;
• Diplomatic missions and consulates of foreign countries accredited in Russia;
• organizations that are not legal entities located outside the Russian Federation;
• intergovernmental and interstate associations, their representative offices;
• branches, representative offices and other structural subdivisions of non-residents located in the Russian Federation.

Currency relations are the most difficult part of interstate financial realities. They are the basis of interstate interaction itself. Currency as a general equivalent is involved in the exchange of all goods and capitals.

All ongoing currency relations are formed into a single system. It is a special form of organization of communications in the field of currency exchange, enshrined in law. In this regard, there are several types of such systems in the global economy:

1. World monetary system. The form of organization and circulation of national money on a global scale. In these relations, there is no single world currency standard.
2. National. It determines how the money equivalent will function within one country, by whom it will be issued and controlled.
3. Regional. This is a new element of the general system, which is a link between the national and the world. There are rules for the functioning of the currencies of a particular region when striving for the use of a common currency. (Example: CIS).

Today, the international monetary system is characterized by competition between the euro and the US dollar. The main settlements between countries at the same timeare carried out in the latter, and it is they that set the rules for the convertibility of other currencies. However, the euro is quite confidently approaching becoming the new equivalent of international payments.

Now the market already has a set of rules and restrictions, as well as unified forms of payment at the international level, currency trading was legalized, etc.

The leading developed countries (especially the G8), acting as rival partners, have a great influence on financial and monetary relations on an international scale. Recently, the activation of developing states in this area has also been noted.