Lecture
The most important part of international economic relations are currency relations, through which payment and settlement operations are carried out in the world economy. The form of organization and regulation of monetary relations is the monetary system. Monetary system is a set of economic relations associated with the formation of currency and forms of their organization (the presence of relevant institutions: organizations, institutions, legal norms).
The global monetary system is a form of organization of monetary relations, due to the development of the world economy, the strengthening of integration processes in the world and legally enshrined in interstate agreements.
The basis of the world monetary system are:
International monetary relations are based on national currencies. Under the currency refers to the national currency used in international payment and settlement turnover. Currency relations have a significant impact on the national reproduction process, which in turn contributes to the increase in world currency trading, the emergence of new financial instruments and institutions.
The exchange rate is determined primarily by the purchasing power of the currency, which reflects the average national price levels for goods, services, and investments, and the specific value of the exchange rate is reflected by inflation rates, differences in interest rates, and the state of the balance of payments. There are nominal and real exchange rates. The nominal rate is a certain specific “price” of the national currency, expressed in a certain amount of foreign currency, and vice versa. The real exchange rate is calculated by multiplying the nominal rate by the ratio of the price levels of the two countries.
Currency exchange at the established rate is carried out in the currency markets. The foreign exchange market is a set of relations arising between the subjects of foreign exchange transactions. It is represented by commercial banks and other financial institutions that have the right to conduct currency transactions. The formation of stable relations on the purchase and sale of currency and their legal consolidation led to the formation of national and then regional and international monetary systems.
An important characteristic of the monetary system is the degree of convertibility of currencies. According to this criterion, there is a freely convertible currency, partially convertible and non-convertible currency. Convertibility is the relationship of the domestic and world markets through the exchange rate of the national currency. The gold standard ensured absolute convertibility at the gold parity of currencies. Under all other conditions, convertibility is relative, i.e. The currency of one country is exchanged only for the currency of another country.
Relative convertibility can be full or partial, i.e. the degree of convertibility is determined by the presence of currency restrictions. These restrictions can be economic, legal and organizational. Fully convertible currencies are currently the currencies of industrialized countries. Most other countries have some restrictions. For Russia, the convertibility of the ruble has been achieved in current operations; full convertibility can be achieved with a profound restructuring and restoration of the economic potential in all defining directions of development of the national economy.
The formation of currency relations is a historically long and complex process. The first world monetary system was formed by the end of the XIX century. This process was objectively determined by the development of world economic relations. Based on the decisions of the Paris Conference in 1867, the gold (gold coin) standard was adopted. Within the gold standard, gold was used as a cash commodity. Each national currency had a gold content, in accordance with which its parity was established for other currencies. For gold, the role of world money was recognized, and free exchange of currencies for gold was made. At the end of the 19th and the beginning of the 20th century, the conditions for the development of the world economy changed, perfect competition was replaced by imperfect competition, uneven development of capitalist states intensified, contradictions sharpened, World War I led to the collapse of the former monetary system.
In 1922, the Genoa Conference was held, which approved a new system of currency relations based on the gold exchange standard, i.e. along with gold in international payments were used slogans - foreign currencies. Within this system, the gold parities and the regime of floating exchange rates were preserved, and countries such as the USA, Great Britain, France used the gold bullion standard. This standard has experienced strong shocks associated with the economic crisis of 1929-1933.
During the Second World War, fundamental changes occurred in the balance of world economic forces. The United States became a powerful world power, the positions of Britain and France were weak, and the economies of Germany and Japan were destroyed.
Under the pressure of the United States at the Bretton Woods conference in 1944, the gold dollar standard was adopted, i.e. the basis of the monetary system was the connection of the dollar with gold. The dollar became the only currency convertible into gold, while only the central banks of the countries could exchange the American dollar for gold. Within the framework of the Bretton Woods system, gold parities were preserved, a system of fixed exchange rates was adopted, that is, the limits of currency fluctuations were defined, and gold could be used as a payment and reserve tool. Two monetary and credit organizations were created: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD). The responsibilities of these organizations included:
Under this system, the United States almost completely determined the world money supply, moreover, all countries had to maintain dollar parity to gold by devaluing or revaluing their currency. After the weakening of the US economic position in the 1960s and 1970s, the Bretton Woods crisis began. In 1976, the Jamaican conference was held in Kingston, which approved the fourth global monetary system. The decisions of the Jamaica Conference came into force in 1978.
The gold exchange standard was replaced by a floating exchange rate system. The new system did not come about by chance. In the early 1960s, due to the inadequate growth in gold production, a debate arose over the increase in international liquidity. In 1967, a scheme was proposed for the use of special drawing rights (SDRs) of international assets in the form of records on special accounts with the IMF without any security. In 1969, an amendment was made to the Regulations of the IMF, allowing the use of SDRs. Their first placement took place in 1970, subsequent releases were carried out in 1971, 1972, 1979, 1980 and 1981. The cost of 1 unit of SDR was determined on the basis of the currency basket, which included the US dollar (39%), German mark (21%), Japanese yen (18%), British pound sterling (11%) and French franc (11%).
With the transition to the standard SDR, the process of demonetization of gold was legally completed, and gold parities were abolished. But the introduction of the SDR was not as successful as the supporters of this system assumed. The Jamaican Agreement revised the assessment and scope of the possible use of SDRs. The member countries of the IMF have the right to choose any exchange rate regime.
Meanwhile, since the establishment of the paper standard in the world since the 1970s, IMF reforms in the world monetary system have not limited themselves to the introduction of the SDR. In 1975, agreements were signed to increase contributions to the IMF by 32.5%, to abolish the price of gold and to revalue gold reserves. In 1978, for complete withdrawal of gold from circulation, it was necessary to switch from fixed exchange rates to flexible or multifactorial ones. And since 1992, the IMF has assumed the right to suspend the SDR of countries that do not fulfill their obligations. Consequently, the IMF, which appeared mainly to regulate the functioning of the world monetary system and to support poor countries with balance of payments problems, was reorganized depending on the problems of each stage: the fall of the Bretton Woods parity system, the oil crisis of the 1970s, the debt crisis of the 1980s , shocks in Asian young markets in the 1990s, and the transition of Eastern European economies to market relations.
Today, the IMF includes 184 countries. Despite the fact that many are asking for its abolition, the IMF continues to be indispensable in some of its original functions. For example, the IMF continues to develop international monetary cooperation, to facilitate balanced growth and development of international trade, to promote monetary stability, to help establish a multilateral payment system, and to provide member countries with difficulties in balance of payments (with appropriate guarantees) the organization’s resources.
In Western Europe, a regional European Monetary System (EMU) was legally adopted in the late 1970s, the ECU monetary unit, the value of which was determined using the currency basket method, which includes the European Union countries. In mid-December 1996, the EU countries decided to switch to a single currency, the euro, from January 1, 1999. Since 1999, the euro unit has been used in the wholesale turnover, and since 2003, and in the retail turnover. In Russia, the monetary system is at the stage of formation, after separation from the other republics of the USSR, the ruble has become a partially convertible currency on current transactions with the preservation of a number of currency restrictions.
International payments are the organization and regulation of payments for monetary claims and obligations of a country. These requirements and obligations in currency arise during the formation of economic, scientific, technical, political, cultural ties between countries. The national currency is used to repay the arising obligations of the state to foreign legal entities and individuals. Foreign currency enters the country in the form of payments according to the requirements of our state.
International payments, as a rule, are carried out non-cash through banks by establishing correspondent (contractual) relations between credit institutions of different countries. Correspondent agreements are of two types: first, nostro - accounts of this bank in other banks and, secondly, loro - accounts of other banks in this bank. These agreements specify the procedure for calculating, the amount of commission, methods of replenishing the correspondent account as funds are spent.
Depending on the degree of convertibility of currency, positions of national and foreign currencies, terms of contracts, various forms of international payments are used, which include certain methods of payment and means of payment. Payment methods include advance payments, letters of credit, encashment, open account payments, payments immediately after shipment of goods.
Settlement in the form of an advance payment - payment after the goods are shipped, which is made by the buyer (the amount can reach 1/3 of the total contract amount) after receiving a telegraph or telex message from the seller describing the goods shipped. If payment is not received from the buyer, the exporter has a certain guarantee of cargo safety, since all the documents are with him. This method of payment contains a certain risk, so it can be used between reliable partners.
A letter of credit is the instruction of the issuing bank to make, at the request of the client (buyer), the payment of documents in favor of a third party - the exporter (beneficiary) when certain conditions are met. The letter of credit form of the calculation is that the exporter and importer enter into a contract for the supply of goods or services, indicating that the calculations will be made in the form of a letter of credit. The importer applies to his bank (issuing bank) with a statement about opening a letter of credit in favor of the exporter. The issuing bank sends a letter of credit to a bank in the country of exporter, with which correspondent relations are maintained (advising bank). Having received copies of the letter of credit, the exporter ships the goods and submits the necessary documents to the advising bank. This bank sends documents to the issuing bank, which, after checking the correctness of the paperwork, makes payment.
In international practice, the most diverse types of letters of credit are used - transferable (transferable), reserve, renewable (revolving), “early opening”, letters of credit with a “red clause”, compensatory letters of credit and letters of credit of pre-emptive action, etc.
An increasingly widespread use in international practice is a transferable (transferable) letter of credit. It allows making payments from it not only in favor of the beneficiary, but also of third parties - second beneficiaries. Transfer of a letter of credit in favor of third parties is made at the request of the beneficiary in whole or in part. Transferable letter of credit is usually used in the event that the beneficiary is not a supplier of goods or delivery is carried out through an intermediary.
The disadvantage of a letter of credit is a complex document flow and delays in the movement of documents associated with the control of documents in banks and their transfer between banks.
A collection is a form of settlement whereby a bank, on behalf of the exporter, receives payments from the importer after goods are shipped and services are rendered. The payments received from the importer are credited to the account of the client (exporter) in the bank. Payments from the importer may be collected on the basis of:
The participants of the collection operation are:
Calculations in the form of collection are constructed as follows. After the conclusion of a contract in which the parties stipulate which banks will be settled, the exporter ships the goods in accordance with the terms of the contract. Having received transport documents from the transport organization, the exporter prepares a set of documents, which includes commercial documents, as well as, possibly, financial documents, and submits it to his bank (remitting bank) for a collection order.
Having received the documents from the principal, the remitting bank checks them against external signs, which are indicated in the collection order, and then acts in accordance with the principal's instructions contained in this order and the Unified Rules. The remitting bank sends the documents to the collecting bank, which is usually the bank of the importing country.
Unfortunately, such a form of non-cash payments as collection is rarely used in Russia, not to mention its use in settlements with foreign partners. Ignoring the obvious advantages of the calculations for the collection is due to the confusion and imperfection of the Russian legislation governing these relations, as well as the low legal culture of Russian entrepreneurs in the field of both international and Russian legislation.
Open account settlements are periodic payments made by the importer to the exporter after receiving the goods. Upon completion of calculations, final reconciliation and repayment of the remaining debt are carried out.The exporter with this form of calculation does not have firm guarantees in obtaining payment for the goods shipped. This form of calculation assumes a high degree of trust between business partners.
The interests of exporters and importers do not coincide, which determines the choice of forms of payment (payment methods). So, for the exporter, the most profitable form of payment is an advance payment, and unprofitable - the calculation of an open account. For the importer, the calculation in the form of collection is more profitable, since it excludes the risk of payment for goods that have not yet been shipped. The exporter seeks to receive payments from the importer as soon as possible, and the importer - to defer payment until the final sale of the goods. Forms of settlement are always a compromise, they are carefully discussed: the economic positions of partners, the economic situation, the political situation, etc. are taken into account.
К средствам расчетов относятся чек, вексель, банковская тратта, перевод в виде почтового, телеграфно/телексного платежного поручения, а также международные платежные поручения, кредитные карточки. В последние годы все шире используются в международных расчетах кредитные карточки – именные денежные документы, дающие возможность применения безналичных форм расчета. Международные расчеты и их регламентация осуществляются в соответствии с выработанными мировой практикой правилами, обычаями. Основные документы приняты Международной торговой палатой и в случае присоединения к данным правилам становятся обязательными для банков и их клиентов. При этом следует учитывать, что к основным документам присоединяются не страны, а банки. Периодически правила пересматриваются, изменяется их содержание и редакция.
По мере внедрения научно-технических достижений в практику международных расчетов возрастает роль электронных средств, что способствует снижению степени риска для участников международных сделок.
Обобщающее выражение движения валюты отражается в платежном балансе. Платежный баланс – это выраженное в валюте каждой страны соотношение между суммой платежей, полученных страной за определенный период времени, и суммой платежей, переведенных за границу за этот же период времени. Платежный баланс отражает движение товаров и капитала и показывает чистые поступления иностранной валюты от всех сделок.
Валютный рынок – это система устойчивых экономических и организационных отношений, складывающихся при проведении операций по куплепродаже иностранной валюты и платежных документов в иностранных валютах. Формирование валютных рынков относится к XIX веку. Развитие международной торговли и усиление движения капиталов между странами способствовали формированию мирового валютного рынка. Ускоренный рост валютных рынков наблюдается после крушения Бреттон-Вудской системы. Ямайская система разрешила свободу выбора режима валютного курса. С одной стороны, это дало более широкие возможности центральным банкам для маневра с валютными курсами, а с другой – усилило нестабильность валютных курсов из-за возросших масштабов валютной спекуляции. Сама валютная спекуляция оценивается двояко: она увеличивает ликвидность, и в то же время она может дестабилизировать валютные рынки. Чтобы нейтрализовать негативное воздействие валютной спекуляции, центральные банки прибегают к валютным интервенциям.
Currency intervention is the purchase and sale of foreign currency by the central bank. Its volume is determined by the value of the balance of payments and the accumulated gold and foreign exchange reserves. Currency interventions are aimed at neutralizing the impact of currency speculation on economic relations both within the country and on a global scale.
В рамках мирового валютного рынка сложилась своя внутренняя иерархическая система. Верхнюю ступень занимают три центра валютного рынка: Лондон, Нью-Йорк и Токио. Крупными региональными валютными рынками являются в Европе Франкфурт-на-Майне, Цюрих, Париж, Брюссель, в Азии – Сингапур и Гонконг. Операции в рамках мирового валютного рынка унифицированы. Но действия субъектов мирового рынка носят децентрализованный характер, связь между ними осуществляется на основе договоренностей, поэтому существует определенный риск при проведении валютных операций. В современных условиях с развитием электронной аппаратуры сокращается время проведения валютных операций, хотя это не снимает окончательно проблемы риска. Мировой валютный рынок действует круглосуточно, но расстояния играют подчас определяющую роль. Разница во времени между Нью-Йорком и Токио составляет 10 часов, между Токио и Лондоном – 9 часов, между Лондоном и Нью-Йорком – 5 часов. В ряде стран важную роль играют валютные биржи, но по мере развития внебиржевых и межбанковских операций объем биржевых операций сокращается.
Российский валютный рынок в середине 1990-х годов оставался локальным, местным. Основными его сегментами были биржевой, внебиржевой (межбанковский) и фьючерсный рынки. Определяющую роль играл биржевой рынок по объему операций, но к концу 90-х годов ХХ века – началу XXI века внебиржевой рынок стал значительно превышать показатели биржевого сегмента.
Валютные рынки можно классифицировать по целому ряду признаков:
по сфере распространения, по отношению к валютным ограничениям, по видам валютных курсов, по степени организованности, виды валютных рынков подразделяются:
1) by area of distribution: The international currency market covers the currency markets of all countries of the world. The international currency market is understood as a chain of closely interconnected cable and satellite communications systems of world regional currency markets. Between them there is a flow of funds, depending on current information and forecasts of leading market participants regarding the possible position of individual currencies. The domestic foreign exchange market is the foreign exchange market of one state, i.e. market functioning within a given country.
2) in relation to currency restrictions, one can distinguish free and not free foreign exchange markets. The foreign exchange market with foreign exchange restrictions is called a non-free market, and in the absence of them, a free foreign exchange market.
3) by types of applied exchange rates:
Рынок с одним режимом - это валютный рынок со свободными валютными курсами, т.е. с плавающими курсами валют, котировка которых устанавливается на биржевых торгах.
В России фиксинг осуществляется Центральным банком России на Московской межбанковской валютной бирже (ММВБ) и представляет собой определение курса доллара США к рублю.
Валютный рынок с двойным режимом - это рынок с одновременным применением фиксированного и плавающего курса валюты. Введение двойного валютного рынка используется государством как мера регулирования движения капиталов между национальным и международным рынком ссудных капиталов. Эта мера призвана ограничить и контролировать влияние международного рынка ссудных капиталов на экономику данного государства.
4) по степени организованности:
Биржевой валютный рынок - это организованный рынок, который представлен валютной биржей. Валютная биржа - предприятие, организующее торги валютой и ценными бумагами в валюте. Биржа не является коммерческим предприятием. Ее основная функция заключается не в получении высокой прибыли, а в мобилизации временно свободных денежных средств через продажу валюты и ценных бумаг в валюте и в установлении курса валюты, т.е. ее рыночной стоимости.
Биржевой валютный рынок имеет ряд достоинств: является самым дешевым источником валюты и валютных средств; заявки, выставляемые на биржевые торги, обладают абсолютной ликвидностью.
Внебиржевой валютный рынок организуется дилерами, которые могут быть или не быть членами валютной биржи и ведут его по телефону, телефаксу, компьютерным сетям.
5) при классификации видов валютных рынков следует выделить рынки евровалют, еврооблигаций, евродепозитов, еврокредитов, а также “черный” и “серый” рынки.
Рынок евровалют - это международный рынок валют стран Западной Европы, где осуществляются операции в валютах этих стран. Функционирование рынка евровалют связано с использованием валют в безналичных депозитно-ссудных операциях за пределами стран-эмитентов данных валют.
Рынок еврооблигаций выражает финансовые отношения по долговым обязательствам при долгосрочных займах в евровалютах, оформляемых в виде облигаций заемщиков. Облигация содержит данные о сумме долга, условиях и сроках его погашения, порядка получения процентов в соответствии с купонами.
The eurodeposit market expresses stable financial relations on the formation of foreign currency deposits in commercial banks of foreign countries at the expense of funds circulating in the eurocurrency market.
The Eurocredit market expresses stable credit relations and financial relations in the provision of international loans in Euro-currency by commercial banks of foreign countries.
The foreign exchange market is a sphere of relations regarding the sale and purchase of goods and foreign currency by various countries and market entities located in different states. Residents have the right to buy and sell currency in the domestic foreign exchange market of Russia only through authorized banks.
Сделки купли-продажи валюты могут осуществляться непосредственно между уполномоченными банками, а также через валютные биржи. Расчеты в валюте и обслуживание международной торговли осуществляется с помощью межбанковских операций. Специфика совершения банковских операций с иностранной валютой определяет особый порядок лицензирования этой деятельности.
Основными участниками валютного рынка являются:
Центральные банки. В их функцию входит управление государственными валютными резервами и обеспечение стабильности обменного курса. Для реализации этих задач могут проводиться как прямые валютные интервенции, так и косвенное влияние - через регулирование уровня ставки рефинансирования, нормативы резервирования и т.п.
Коммерческие банки. Они проводят основной объём валютных операций. В банках держат счета другие участники рынка и осуществляют через них необходимые для своих целей конверсионные и депозитно-кредитные операции. В банках концентрируются совокупные потребности товарных и фондовых рынков в обмене валют, а также в привлечении/размещении средств. Помимо удовлетворения заявок клиентов, банки могут проводить операции и самостоятельно за счёт собственных средств. В конечном итоге, международный валютообменный рынок (форекс) представляет собой рынок межбанковских сделок. Наибольшее влияние оказывают крупные международные банки, ежедневный объём операций которых достигает миллиардов долларов. Объём одного межбанковского контракта с реальной поставкой валюты на второй рабочий день (рынок спот) обычно составляет около 5 млн. долларов США или их эквивалент. Стоимость одного конвертационного платежа составляет от 60 до 300 долларов. Кроме этого, приходится нести затраты до 6 тыс. долларов в месяц на межбанковский информационно-торговый терминал. Из-за этих условий, на Форексе не проводят конвертаций небольших сумм. Для этого дешевле обратиться к финансовым посредникам (банку или валютному брокеру), которые проведут конвертацию за определённый процент от суммы сделки. При большом количестве клиентов и разнонаправленных заявках регулярно возникает ситуация внутреннего клиринга, когда посреднику не требуется обращаться к стороннему контрагенту (не нужно проводить реальную конвертацию через Форекс). Но свои комиссионные посредники получают с клиентов всегда. Именно из-за того, что на Форекс попадают не все клиентские заявки, посредники могут предложить клиентам комиссионные, которые существенно ниже стоимости прямых операций на Форексе. В то же время, если устранить посредников, стоимость конвертации для конечного клиента неизбежно возрастёт.
Firms engaged in foreign trade operations. Total applications from importers form a steady demand for foreign currency, and from exporters - its supply, including in the form of foreign currency deposits (temporarily free balances on foreign currency accounts). As a rule, firms do not have direct access to the foreign exchange market and conduct conversion and deposit operations through commercial banks.
International investment companies, pension and hedge funds, insurance companies. Their main task is diversified portfolio management, which is achieved by placing funds in securities of governments and corporations of various countries. At the dealership slang they are simply called funds. This type can also be attributed to large transnational corporations engaged in foreign industrial investment: the creation of branches, joint ventures, etc.
Currency Exchange. In a number of countries, there are national currency exchanges, whose functions include the implementation of currency exchange for legal entities and the formation of a market exchange rate. The state usually actively regulates the level of the exchange rate, taking advantage of the compactness of the local exchange market.
Currency brokers. Their function is to reduce the buyer and seller of foreign currency and the implementation of a conversion or loan-deposit transaction between them. For their intermediation, brokerage firms charge a brokerage commission as a percentage of the transaction amount. But the amount of this commission is often less than the difference between the bank loan interest rate and the bank deposit rate. Banks can also perform this function. In this case, they do not issue a loan and do not bear the corresponding risks.
Private individuals. Citizens carry out a wide range of operations, each of which is small, but in total they can form a significant additional demand or supply: payment for foreign tourism; remittances of wages, pensions, fees; purchases / sales of cash currency as a store of value; speculative currency transactions.
Licenses to commercial banks are issued by the Central Bank of Russia and are divided into general, internal and one-time. The general license gives commercial banks the right to carry out all banking operations in foreign currency both in Russia and abroad. An internal license provides for the right of commercial banks to carry out banking operations in foreign currency in Russia. A one-time license provides the right to conduct a specific bank transaction in foreign currency. A bank that has received a general or internal license is referred to as an authorized bank and performs the functions of a currency control agent for the operations of its customers.
Different types of foreign exchange transactions are carried out in foreign exchange markets. Foreign exchange transactions are transactions for the purchase and sale of currency, as a result of which there is a change in the owner of a national or foreign currency, or two foreign currencies; this also includes operations for the provision of loans and settlements in foreign currency.
The main types of foreign exchange transactions are spot and forward. Spot - this is cash transactions with cash currency, the delivery dates of which are two working days from the moment of the transaction.
At the spot rate - the base rate of the foreign exchange market - there is a settlement of current trading and non-trading operations.
A forward is an urgent transaction in which a currency is delivered after a certain time (a month or more) on a fixed date at the rate agreed at the time of the transaction. On currency exchanges, futures transactions are used in which payments are made within a specified period (from a week to five years) at the exchange rate at the time of the conclusion of the contract. Forward (futures) operations can be carried out for speculative purposes and for the purpose of insuring currency risks in time and in different markets.
Hedging (insurance) of currency risks is aimed at preventing neither net assets, nor net liabilities, i.e., to avoid losses. In financial terms, these are actions to liquidate open positions in foreign currency. Open positions are of two types: “long” (net assets in foreign currency) - this is a situation where the requirements exceed our liabilities; “Short” (net liabilities) - when liabilities exceed the requirements in this currency. In any case, takes into account the future dynamics of exchange rates. In recent years, the volume of other types of transactions has increased.
Currency arbitrage is the purchase and sale of foreign currency with a subsequent return transaction in order to profit from the difference in exchange rates over time. This is so-called. temporary currency arbitrage. If, in this transaction, differences in the exchange rate of a given currency in different markets are used, spatial arbitration is applied. It can be carried out with two and a large number of currencies.
Outright is a simple urgent currency transaction involving payments at the rate of "forward" in terms strictly stipulated by the parties to the transaction.
An option is an urgent deal with pre-reward, giving the right to choose on an alternative basis the terms of the contract. It is obligatory for execution under the conditions of the other party.
A swap is a transaction carried out by central banks to exchange national currency for foreign currency with the obligation of reverse exchange on a mutually beneficial basis after a certain period of time on spot terms. A swap is an agreement executed in one document, according to which both parties make periodic payments to each other, taking into account the comparative advantage in the market of one of the currencies. A currency swap can be carried out in the form of two conversion transactions on the terms of both immediate delivery - spot and delivery of currency in the future - forward.
Currency intervention is a target operation for the purchase and sale of foreign currency to limit the dynamics of the national currency exchange rate by certain limits: an increase in the national currency exchange rate or its depreciation.
Currency speculation - this is the operation of banking institutions, businesses and individuals for the sake of profit from changes in exchange rates over time or in different markets.
There is also a type of currency transactions of entrepreneurs associated with the manipulation of the timing of settlements for obtaining economic benefits. This type is often used when raising or lowering exchange rates, with significant fluctuations in interest rates, to reduce the degree of risk.
In recent decades, the structure of currency transactions has changed significantly. The proportion of spot transactions decreased significantly and the level of transactions such as swaps, options, futures, currency speculation increased significantly. Such dynamics, on the one hand, characterize the desire to reduce foreign exchange risk, and on the other, it gives rise to new problems associated with the instability of the foreign exchange market. This is the main trend in the development of the currency market at the present stage.
The world credit market is a specific sphere of market relations, where the movement of money capital between countries is carried out on the terms of repayment and interest payment and supply and demand are formed. In the 1980s – 1990s, the global credit market underwent major changes related to the search for a compromise in the conditions of instability of exchange rates during this period. In addition, debt of developing countries grew at a significant pace.
Traditionally, the market for short-term loans (money market) and the market for medium- and long-term loans (capital market) were distinguished. This distinction has gradually lost its meaning, since in practice there is a mutual overflow of capital, short-term investments are transformed into medium- and long-term loans (usually with the help of bank and state guarantees).
The object of the transaction in the global credit market is capital transferred in a loan to legal entities and individuals and citizens of foreign countries. From a functional point of view, this system of market relations ensures the accumulation and redistribution of loan capital between countries in order to ensure the continuity of the reproduction process. Historically, the global credit market has emerged on the basis of the international operations of the national capital markets, then formed on the basis of their internationalization.
The attribute of the world credit market is the direction of the national loan capital abroad, at the disposal of a foreign bank or the attraction of foreign capital. Classical foreign loans and loans are based on the principle of unity of the place of borrowing and the unity of currency (usually the currency of the loan). Loan time can vary from one day to ten years, and interest rates are associated with rates in the London interbank deposit market. The gap between interest rates on deposits and loans is small, since the volume of banking operations is very large and the costs are small.
The global credit market is connected in its activities with the financial market, which specializes mainly in the issuance of securities and their circulation. The financial market issues foreign and international bonds. In recent years, the volume of purchase and sale of bonds is growing rapidly.
Integration processes, qualitative changes in the forms of economic relations led to the improvement of the forms and methods of mutual settlements, to the formation of the market of loan capital. It has become international in nature and global in scope. This increases the efficiency of transactions, on the one hand, but on the other hand, the degree of risk increases significantly. In the new conditions of development of the credit market, the importance of international monetary and financial organizations and institutions increases.
In the literature there are the following features of the global credit market:
The credit market directly affects the growth of production and commodity circulation, the movement of capital within the country, the conversion of savings into capital investment, scientific and technological progress and the renewal of fixed capital. Thus, the credit market is the so-called pillar of the financial sphere of production. Its main role is the pooling of small, scattered cash. In addition, the credit market plays a large role in the restructuring of the capitalist economy, especially in industrialized countries such as the United States, Western Europe and Japan.
There are five main functions of the credit market:
These functions of the credit market are aimed at maintaining the capitalist mode of production, ensuring the functioning of the economic system of state-monopoly capitalism.
Reflecting the accumulation and movement of money capital, the credit market is organically connected with the movement of value in its monetary form, with the formation and use of various monetary funds in the form of credit resources and securities. Through the market, it is possible to measure and determine the movement, volume, direction of monetary funds that go to the development of capitalist social reproduction, its impact on socio-economic relations.
The financial instruments of the credit market are:
The interrelation of the world credit market with the world financial market is intensifying due to the trend with securitization, i.e. the replacement of traditional forms of bank credit by issuing securities. The security of their issue is a package of liabilities of bank customers on loans received by them of a similar nature. The bank pays interest and repays these securities from funds received from borrowers in repayment of loans. In order to avoid a legal clause on the “turnover at the issuing bank” when selling securities (these assets remain on its balance sheet), banks use stand-by letters of credit.
Stand-by conditions - the bank's obligation to provide the borrower with a conditional amount for the entire contractual period of use, which is divided into short periods (3, 6, 9, 12 months). For each period, a floating interest rate is established, which is revised to reflect the dynamics of LIBOR. This makes it possible to provide medium- and even long-term credit using short-term resources.
The largest borrower is the United States and other developed countries. The main creditors in the global credit market are also industrialized countries, among which are Switzerland, the Netherlands, and Germany. In recent years, China has become one of the world's largest lenders.
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World economy
Terms: World economy