Economic transactions between participants in international relations are impossible without the exchange of one national currency for another. The proportion in which the currency of one country is exchanged for the currency of another is called the exchange rate. In other words, each foreign monetary unit has an exchange rate - a price expressed in the national currency of another country.

Exchange rate necessary for the exchange of currencies in the trade of goods and services, the movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators different countries; for periodic revaluation of accounts in foreign currency firms, banks, governments and individuals. The exporter exchanges the proceeds of foreign currency for the national one, since the currencies of other countries cannot circulate as legal means of purchase and payment on the territory of this state. The importer exchanges national currency for foreign currency to pay for goods purchased abroad.

Exchange rates are divided into two main types: fixed and floating.

The fixed exchange rate fluctuates within narrow limits. Floating exchange rates depend on the market supply and demand for the currency and can fluctuate significantly in value.

The fixed exchange rate is based on currency parity, i.e. officially established ratio of monetary units of different countries. Under monometallism - gold or silver - the basis of the exchange rate was monetary parity - the ratio of monetary units of different countries according to their metal content. It coincided with the concept of currency parity.

Under gold monometallism, the exchange rate was based on gold parity - the ratio of currencies according to their official gold content - and spontaneously fluctuated around it within gold points. The classical mechanism of gold dots operated under two conditions: free purchase and sale of gold and its unlimited export. The limits of exchange rate fluctuations were determined by the costs associated with the transportation of gold abroad, and in fact did not exceed +/- 1% of the parity. With the abolition of the gold standard, the mechanism of gold dots ceased to operate.

The exchange rate with fiat credit money gradually broke away from the gold parity, since gold was forced out of circulation into a treasure. This is due to the evolution of commodity production, monetary and foreign exchange systems. Until the mid-1970s, the exchange rate was based on the gold content of currencies - the official price scale - and gold parities, which were fixed by the IMF after the Second World War. The measure of the ratio of currencies was the official price of gold in credit money, which, along with commodity prices, was an indicator of the degree of depreciation. national currencies. In connection with the separation for a long time of the official, fixed by the state price of gold from its value, the artificial nature of the gold parity intensified.

For more than 40 years (1934-1976) the price scale and gold parity were set on the basis of the official gold price. Under the Bretton Woods monetary system, due to the dominance of the dollar standard, the dollar served as a reference point for the exchange rates of other countries.

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The exchange rate is defined as the value of the currency of one country, expressed in the currency of another country. The exchange rate is necessary for the exchange of currencies in the trade of goods and services, the movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for periodic revaluation of foreign currency accounts of firms, banks, governments and individuals.
Exchange rates are divided into two main types: fixed and floating.
The fixed exchange rate fluctuates within narrow limits. Floating exchange rates depend on the market supply and demand for the currency and can fluctuate significantly in value.
The fixed rate is based on currency parity, that is, the officially established ratio of monetary units of different countries. Under monometallism - gold or silver - the basis of the exchange rate was monetary parity - the ratio of monetary units of different countries according to their metal content. It coincided with the concept of currency parity.
Under gold monometallism, the exchange rate was based on gold parity - the ratio of currencies according to their official gold content - and spontaneously fluctuated around it within gold points. However, with the abolition of the gold standard, the mechanism of gold points ceased to operate.
AT modern conditions the exchange rate is based on currency parity - the ratio between currencies established by law, and fluctuates around it.
In accordance with the amended IMF Charter, currency parities can be set in SDRs or other international currency units. A new phenomenon since the mid-1970s has been the introduction of parities based on a currency basket. This is a method of comparing the weighted average exchange rate of one currency in relation to a certain set of other currencies. The use of a currency basket instead of the dollar reflects the trend away from the dollar to a multi-currency standard.
The development of foreign economic relations requires a special tool through which the entities acting on international market could maintain close financial interaction with each other. Such a tool is banking operations for the exchange of foreign currency. The most important element in the system of banking operations with foreign currency is the exchange rate, since the development of international economic relations requires the measurement of the cost ratio of the currencies of different countries.
The exchange rate is required for:

· mutual exchange of currencies in trade in goods, services, in the movement of capital and loans. The exporter exchanges the proceeds of foreign currency for the national one, since the currencies of other countries cannot circulate as legal means of purchase and payment on the territory of this state. The importer exchanges national currency for foreign currency to pay for goods purchased abroad. The debtor acquires foreign currency for national currency to pay off debt and pay interest on foreign loans;

Comparison of prices of world and national markets, as well as cost indicators of different countries, expressed in national or foreign currencies;

· Periodic revaluation of foreign currency accounts of firms and banks.
Exchange rate- this is the exchange ratio between two currencies, for example, 100 yen for 1 US dollar or 16 Russian rubles for 1 US dollar, 440 AMD for 1 dollar.
Hypothetically, there are five exchange rate systems:

Free (“clean”) swimming;

· Managed swimming;

· Fixed rates;

target areas;

· Hybrid system of exchange rates.
Thus, in a free floating system, the exchange rate is formed under the influence of market demand and supply. At the same time, the foreign exchange forex market is closest to the model of a perfect market: the number of participants, both on the demand side and on the supply side, is huge, any information is transmitted in the system instantly and is available to all market participants, the distorting role of central banks is insignificant and unstable.
In a managed float system, in addition to supply and demand, the value of the exchange rate is strongly influenced by central banks countries, as well as various temporary market distortions.
An example of a fixed rate system is the Bretton Woods currency system 1944-1971

The target zone system develops the idea of ​​fixed exchange rates. An example is fixing Russian ruble to the US dollar in the corridor 5, 6-6, 2 rubles per 1 US dollar (in pre-crisis times). In addition, this type can be attributed to the mode of functioning of the exchange rates of the countries participating in the European Monetary System.
Finally, an example of a hybrid exchange rate system is the modern currency system, in which there are countries that freely float the exchange rate, there are zones of stability, etc.

To develop the interaction of institutional units of different countries within the global economic community, it is necessary to have a mechanism that allows, on the one hand, to equalize the parameters of economic development, and on the other hand, to pay for goods and services purchased abroad. A similar mechanism is the exchange rate.

Exchange rate - the value of the monetary unit of one country, expressed in the monetary units of another country (for example, 32.41 Russian rubles for 1 US dollar).

The exchange rate is necessary for the exchange of currencies in the trade of goods, services, the movement of capital, loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for periodic revaluation of foreign currency accounts of firms, banks, governments, individuals, etc.

Through the exchange rate, the national limitation of the monetary unit is overcome and its local value is transformed into an international value. At the same time, a uniform cost criterion is formed, which makes it possible to streamline and regulate the currency exchange process (purchase and sale of various currencies).

In theory, there are five main exchange rate systems: free float, managed float, target zones, fixed rates, and a hybrid exchange rate system.

Thus, in a free floating system, the exchange rate is formed under the influence of market demand and supply. At the same time, the foreign exchange market is closest to the model of a perfect market: the number of participants both on the demand side and on the supply side is huge, any information is transmitted in the system instantly and is available to all market participants, the distorting role of central banks is insignificant and unstable.

In a managed float system, in addition to supply and demand, the value of the exchange rate is significantly influenced by the central banks of countries and various other temporary market distortions.

An example of a fixed rate system is the Bretton Woods currency system of 1944-1971. In it, the rate of all currencies was fixed against the dollar with a fluctuation limit of ± 1%, and the US dollar was rigidly pegged to gold: 35 US dollars - 1 troy ounce of gold.

The target zone system develops the idea of ​​fixed exchange rates. Its example is the fixation of the Russian ruble against the US dollar for six months during 1995-1998.

Finally, an example of a hybrid exchange rate system is the modern currency system, in which there are countries that use free float of the exchange rate, there are zones of stability, etc. , in IMF: International Financial Statistics Yearbook, Vol. XLVIII, Washington, 2000.

The basis of the modern exchange rate is formed by a whole complex of exchange rate factors. The resultant of these factors - not only the price level, but also the state of the balance of payments, the cost of credit, the scale of capital migration, the rate of economic growth, the prospects for political development, etc. - determines the value of the exchange rate at any given time. For practical purposes, to assess the pace of economic development, economic planning and forecasting, several calculated varieties of the exchange rate are used.

Exchange rates can be classified according to various criteria.

Classification of the types of exchange rates Criterion Pitchfork of the foreign exchange rate Degree of freedom of fluctuation Floating 0 Fixed Mixed Calculation method Parity Actual Method of establishment Official (exchange) Actual (bank) Relationship to purchasing parity Parity of currency power Overstated Underestimated According to inflation Real Nominal According to the method of sale Tourist (banknote) Currency (deposit exchange) According to the degree of freedom of fluctuations, exchange rates are divided into fixed, floating and mixed.

Fixed exchange rate - a unified system of exchange rates based on official, agreed by countries - members of the IMF currency parities, expressed in gold or in US dollars. Market rates of national currencies are maintained at the level of ±2.25% fluctuations in relation to parity.

The fixed rate is based on currency parity, that is, the officially established ratio of monetary units of different countries.

Currently, the concept of a pegged / fixed exchange rate is more often used - an officially established ratio between the national and foreign (s) currencies, allowing a temporary deviation from it in one direction or another by an officially established value.

Fixing/pegging is, as a rule, unilateral and is obligatory only for the country that has chosen this exchange rate regime. An exception to this rule are the EU countries, which have mutual obligations to maintain the exchange rates of their currencies.

Options for fixing/pegging the exchange rate of the national currency include:

Fixation to one currency - binding the national currency rate to the foreign currency rate, which is of the greatest importance in the total volume of international settlements of a given country;

Currency management - fixing the exchange rate of the national currency to the base, which, as a rule, is the most used currency in international settlements. At the same time, a number of conditions are observed: full coverage of the monetary base with foreign currency reserves, an automatic mechanism for issuing money, carried out only when buying the base currency, internal credit to the government and the Central Bank is completely excluded;

Currency corridor - officially established limits for fluctuations in the exchange rate, when the state assumes obligations to maintain them;

Fixing to a currency composite - fixing the exchange rate of the national currency to the rates of collective monetary units, such as SDRs, or to various "baskets" of currencies of countries - the main trading partners.

Floating exchange rates depend on the market supply and demand for the currency and can fluctuate significantly in value. In the regime of floating exchange rates are usually freely convertible currencies.

Floating exchange rate - a mechanism for establishing and maintaining the exchange rate of the national currency, in which it freely changes as a result of the interaction of supply and demand for foreign exchange market. Most countries that implement a policy of free floating of their currencies, however, adhere to a policy of managed ("dirty") floating, in which the central banks of countries periodically intervene in the foreign exchange market in order to maintain the exchange rate of their own currency with its strong fluctuations at a certain point in time. For this, the mechanism of foreign exchange interventions is used.

The mixed exchange rate combines elements of fixed and floating exchange rates. An example of such an exchange rate was the rates of national currencies - the countries of the European Monetary Union (1979-1999), which were fixed to 1 ecu, and through it, respectively, were rigidly tied to each other, but in relation to the currencies of countries that are not members of the EMU , were free-floating.

According to inflation, exchange rates are divided into real and nominal.

The nominal exchange rate shows the exchange rate currently in force in the country's foreign exchange market.

The real exchange rate is the nominal exchange rate adjusted for inflation in countries. To assess the level of inflation, price indices are used, which reflect the degree of change in the general price level in the country. The most commonly used consumer price index, which best reflects the level of inflation in the country.

The exchange rate of the national currency may vary over time in relation to different currencies. So, in relation to strong currencies, it can fall, and in relation to weak ones, it can rise. For example, in 1995 the US dollar fell against the Japanese yen and the German mark, but strengthened against the Mexican peso. In the 1980s, the exchange rate of the British pound sterling fluctuated significantly (either rose or fell) against the US dollar, the Italian lira, the French franc, and declined against the yen and the German mark. Therefore, to determine the dynamics of the exchange rate as a whole, the exchange rate index, or the effective exchange rate, is calculated. When calculating it, each currency receives its own weight depending on the share of foreign economic transactions of a given country falling on it. The sum of all weights is 1 (100%). The exchange rates are multiplied by their weights, then all the values ​​obtained are summed up and their average value is taken. For practical purposes, the dynamics of the movements of the currencies of those countries that are the main trading partners of a given country are taken into account, since national importers make the main demand for their currencies and national exporters receive payments in their currencies.

Thus, the general index of the exchange rate of the pound sterling from 1980 to 1987 showed a depreciation of the pound against all major currencies, during 1988 - an increase in the rate. So, in 1988 it was 95.5, and in 1981 - 119.0. Over the past 30 years (from 1970 to 2000), the rates of only three currencies have risen: the German mark, the Japanese yen, and the Swiss franc.

Allocate nominal effective and real effective exchange rates.

Nominal effective exchange rate - an exchange rate index calculated as the ratio between the national currency and the currencies of other countries, weighted in accordance with the share of these currencies in currency transactions of this country.

Expert assessments play a significant role in calculating the nominal effective exchange rate. For example, according to the IMF methodology, to calculate it, you need:

Select the base year for which all exchange rate indices will be recalculated;

Choose the method of averaging the exchange rate for the year;

Determine the share of each of them in the trade turnover of this state;

Weigh them by specific gravity these countries in the trade turnover of this country.

Thus, the nominal effective exchange rate reflects the change not only in the value of the currencies themselves, but also in the price levels in each of the countries. To determine the real trends of the effective exchange rate, it, as in the case of the real exchange rate, takes into account the movement of prices or indicators of production costs both in the home country and in all foreign countries taken into account.

Real effective exchange rate - the nominal effective exchange rate, adjusted for changes in the price level or other production costs, characterizing the dynamics of the real exchange rate of a given country against the currencies of the countries - the main trading partners.

The trend of change in the real effective exchange rate is the main indicator that characterizes the generalized dynamics and direction of movement of the rates of major currencies, it can serve as the basis for conclusions about the nature of their development. In addition, the real effective exchange rate of the national currency is the main indicator that characterizes the competitiveness of countries in the world market. If it rises, then the country's competitive position in the world market worsens: exports become more expensive and their volume decreases, while imports, on the contrary, will be cheaper and their volume grows. In addition, the growth rate of the real effective exchange rate compared to periods when the country's economy was at a more prosperous level of development shows the amount of devaluation of the national currency necessary to restore its international competitiveness and achieve a balance of payments.

According to the method of establishing exchange rates are divided into official and actual.

The official (exchange) exchange rate is set by the central currency exchange of the country. At this rate, all government settlements with the outside world are made. In the Russian Federation, the official exchange rate is the rate of the Central Bank, set at the Moscow Interbank Currency Exchange (M&VB).

The actual bank rate is the rate at which residents of a given country can make settlements with foreign partners. Typically, such a course is offered by the main participants in the foreign exchange market - commercial banks.

In relation to parity, the official exchange rate can be either overvalued or undervalued. This has a significant impact on the development of the country's foreign trade through changes in the price ratios of exports and imports, causing changes in the domestic economic situation, as well as changing the behavior of firms working for export or competing with imports.

In general, the depreciation of the national currency provides an opportunity for exporters to lower the prices of their products in foreign currency, receiving the same amount in national currency when it is exchanged. This increases the competitiveness of exported goods and creates conditions for increasing exports. At the same time, imports are difficult, since foreign exporters are forced to raise prices in order to receive the same amount in their own currency. Simultaneously with this, there is an increase in import prices (if the demand for imports is price inelastic), and after this, an increase in their general level. The opposite phenomena are observed when the national currency strengthens.

Many countries manipulate exchange rates to serve both economic development objectives and currency risk protection. Manipulation includes a whole range of measures - from artificial underestimation or, conversely, overestimation of national currencies, the use of tariffs and licenses to the intervention mechanism.

In relation to the purchasing power parity of the currency, the exchange rates of the national currency can be overestimated, underestimated and parity.

An overvalued national currency is an official rate set at a level above the parity rate. In turn, the undervalued exchange rate is the official rate set above parity. The parity exchange rate is defined as the ratio of the prices of similar "baskets" of goods and services of two countries expressed in their national currencies.

Sometimes installed different modes exchange rates for various participants in the foreign exchange market, depending on the transactions (commercial or financial). The rate for commercial transactions is usually undervalued. First, for countries that have artificially undervalued their own currency, there is a recovery in the economy, caused by an increase in the competitiveness of exports. However, restrictions on the intra-industry and inter-industry redistribution of resources further increase, most of the national income is directed to the sphere of production due to a decrease in the share of consumption in it; this leads to an increase in the level of consumer prices in the country, which contributes to the deterioration of the living standards of workers. The artificial maintenance of a constant exchange rate, the level of which differs significantly from the parity rate, can also have a negative impact on the change in the proportions of the national economy, which leads to the consolidation of a one-sided orientation in the development of individual sectors of the economy.

According to the method of selling currency, there are tourist (banknote) and foreign exchange (deposit exchange) rates.

At the tourist rate, cash banknotes and coins are exchanged at exchange offices, usually commercial banks. Usually used for individuals.

The exchange rate is used by commercial banks when carrying out operations on the foreign exchange market with non-cash currency, usually when performing conversion operations of various urgency.

The method of setting the exchange rate is called quotation. Distinguish between direct and reverse currency quotes.

Direct quotation is understood as such an establishment of the exchange rate, in which a certain amount of national currency is given per unit of foreign currency. For example, for 1 US dollar, 31.256 Russian rubles are given. This is a direct quotation of the US dollar on the Russian foreign exchange market.

With a reverse quote for a unit of national currency, a certain amount of foreign currency is given. Traditionally, currencies that are stronger than the US dollar are quoted back, such as the pound sterling (English and Irish), the SDR and other currencies. For example, for 1 pound sterling they give 1.4373 US dollars in the UK foreign exchange market.

The currency is quoted up to a basis point - 0.01%, i.e. up to the fourth decimal place. For example, 1.6365 Swiss francs per 1 US dollar.

In this example, the basis point is the number "5". If the US dollar appreciates by 10 points against the Swiss franc, then the quote will be 1.6375 Swiss francs per US dollar. If the US dollar falls by 100 points, the Swiss franc will be 1.6265 per US dollar.

The currency that is the unit of measure in the quote is called the base currency. In our example, this is the US dollar. A currency, a certain amount of which is equal to a unit of another currency, is called a quoted currency. In our example, this currency is the Swiss franc.

Some currencies have a small scale, so when they are quoted, not one, but 100 units (for example, Japanese yen), 1000 (for example, Belarusian rubles), 10 (for example, Danish and Swedish krona), 1000,000 units (for example, Turkish lira).

Exchange rate: concept, types and factors of its determining

The exchange rate is the price of the currency of one country expressed in the currencies of other countries. It shows how much foreign goods (assets) can be bought with a certain amount of national money.

The exchange rate is necessary for the exchange of currencies in the trade of goods and services, the movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for periodic revaluation of foreign currency accounts of firms, banks, governments and individuals.

There are four types of exchange rates:

1) fixed -it is based on currency parity - the officially established ratio of monetary units of different countries. The Central Bank sets limits on exchange rate fluctuations (currency corridor). For example, if the exchange rate of the national currency decreases, then the Central Bank buys a certain amount of it in exchange for foreign currency to maintain it. Thus, the supply of the national currency is reduced, and its rate rises, and vice versa. A decrease in the exchange rate is called a devaluation, and an increase is called a revaluation.
2) floating exchange rate - is established as a result of the interaction of supply and demand in the market. In addition to them, there are a number of intermediate options, the so-called hybrid courses. The most typical type of the latter is a managed exchange rate (managed floating). Managed swimming is the practice of managing a course with government regulation tools.
3) nominal exchange rate - the actual price of one currency in units of another currency.

4) real exchange rate - is the change in the price level in one country compared to the price level in another, measured through the nominal exchange rate (the ratio at which the goods of one country can be exchanged for the goods of another country).

The exchange rate is required for:

1. mutual exchange of currencies in trade in goods, services, in the movement of capital and credits;
2. comparison of prices of world and national markets, as well as cost indicators of different countries, expressed in national or foreign currencies;
3. periodic revaluation of foreign currency accounts of firms and banks.

A number of factors influence the exchange rate. First of all, the change in the exchange rate occurs under the influence of supply and demand in the foreign exchange market. In turn, supply and demand are influenced by numerous circumstances of an economic, political, subjective-psychological nature.

1) Trade balance.

From diversity economic indicators, at first glance, the trade balance should have the most direct and immediate relationship with the exchange rate, since it represents the difference between the country's total exports and imports.

If export prevails in the structure of the country's foreign trade, then this means an excess flow of foreign currency into the country, therefore, an increase in demand for the national currency and an increase in the exchange rate of this currency. Conversely, with a trade deficit (when the volume of imports is greater than the volume of exports), the national currency should weaken. In reality, the mutual influence of trade, exchange rates, inflation and interest rates mixes all the factors so much that the connection between them becomes completely unobvious.

2) Interest rates.

Another important indicator for tracking the dynamics of foreign exchange markets are interest rates. The interest differential, that is, the difference in interest rates for two currencies, is the main factor that directly determines the relative attractiveness of a pair of currencies, and, consequently, the possible demand for each of them.

The higher the interest rate for this currency compared to other currencies (large interest differential), the more foreign investors will be willing to buy this currency in order to deposit funds at a high interest rate. In short, high interest rates make this currency attractive as an investment tool; which means that the demand for it in the international currency market is increasing, and the rate of this currency is growing.

3) Gross domestic product.

Gross domestic product, GDP - a general indicator of the amount of value added created over a certain period by all manufacturers operating in the country. GDP is a general indicator of the strength of the economy (or vice versa, its weakness during recessions). Its connection with the exchange rate is always obvious and quite direct - the stronger the GDP grows, the stronger the national currency. The higher the GDP, the better the state of the economy. Its optimal change is up to 3% per year; if higher - reverse reaction. We will have to introduce higher rates, which will cause the appreciation of the national currency.
4) Inflation.

Inflation is the most important indicator of the development of economic processes, and for the currency markets - one of the most significant benchmarks. Currency dealers are watching inflation data very carefully.

An increase in inflation reduces the real interest rate, since some part must be deducted from the income received, which will simply go to cover the price increase and does not give any real increase in the benefits (goods or services) received. The simplest way formal accounting for inflation and lies in the fact that, as a real interest rate consider the nominal rate minus the inflation rate (also given as a percentage), in addition, the inflation rate is the most important indicator of the "health" of the economy, and therefore it is carefully monitored by central banks. The only way to fight inflation is to raise interest rates.

5) Actions of central banks.

All actions of state regulatory bodies, and in particular, central banks that affect finance and money circulation, are important factors for exchange rates. The price of a currency is determined primarily by the supply and demand associated with that currency on the international market. Therefore, the exchange rates of major currencies are created by the market, but central banks have a range of tools through which they can significantly affect exchange rates. These tools are used by central banks, based on the goals of their financial policy(the main of which is the stability of the national currency) and the specific situation, which is determined by the state of the economy, the country's competitive position in the world market and political factors. Therefore, the markets are always very closely watching not only the economy, but also the financial statistics of the main trading countries, trying to predict the actions of central banks based on them.

6) The amount of money supply.

The amount of money in circulation is one of the essential factors that shape the exchange rate. An excess of one currency will create an increased supply of it on the international currency market and cause its exchange rate to depreciate in relation to other currencies. Accordingly, a shortage of currency, if there is a demand for it, will lead to an increase in the exchange rate.

Direct quotation - the amount of national currency for one foreign unit. In most countries, foreign exchange rates are expressed in national currency. This is the so-called direct quotation system. For example, in Germany, one US dollar ($) will be equal to a certain number of German marks (DM), and in New York one German mark will be equal to a certain number of cents (or dollars, if the mark is high enough).

Reverse quotation - the amount of foreign currency per unit of the national one.

The exchange rate is defined as the value of the currency of one country expressed in the currency of another country. The exchange rate is necessary for the exchange of currencies in the trade of goods and services, the movement of capital and loans; to compare prices on world commodity markets, as well as cost indicators of different countries; for periodic revaluation of foreign currency accounts of firms, banks, governments and individuals.

Exchange rates are divided into two main types: fixed and floating.

The fixed exchange rate fluctuates within narrow limits. Floating exchange rates depend on the market supply and demand for the currency and can fluctuate significantly in value.

The fixed exchange rate is based on currency parity, i.e. officially established ratio of monetary units of different countries. Under monometallism - gold or silver - the basis of the exchange rate was monetary parity - the ratio of monetary units of different countries according to their metal content. It coincided with the concept of currency parity.

Under gold monometallism, the exchange rate was based on gold parity - the ratio of currencies according to their official gold content - and spontaneously fluctuated around it within gold points. The classical mechanism of gold dots operated under two conditions: free purchase and sale of gold and its unlimited export.

The exchange rate with fiat credit money gradually broke away from the gold parity, because. gold was forced out of circulation into treasure. This is due to the evolution of commodity production, monetary and foreign exchange systems. For the mid-70s, the exchange rate was based on the gold content of currencies - the official price scale - and gold parities, which were fixed by the IMF after the Second World War. The measure of the ratio of currencies was the official price of gold in credit money, which, along with commodity prices, was an indicator of the degree of depreciation of national currencies. In connection with the separation for a long time of the official, fixed by the state price of gold from its value, the artificial nature of the gold parity intensified.

For more than 40 years (1934-1976) the price scale and gold parity were set on the basis of the official gold price. Under the Bretton Woods monetary system, due to the dominance of the dollar standard, the dollar served as a reference point for the exchange rates of other countries.

After the cessation of the exchange of the dollar for gold at the official price in 1971, the gold content and the gold parities of currencies became purely nominal concept. As a result of the Jamaican currency reform, Western countries officially abandoned the gold parity as the basis of the exchange rate. With the abolition of official gold parities, the concept of monetary parity also lost its meaning. In modern conditions, the exchange rate is based on currency parity - the ratio between currencies established by law, and fluctuates around it.

In accordance with the amended IMF Charter, currency parities can be set in SDRs or other international currency units. A new phenomenon since the mid-1970s has been the introduction of parities based on a currency basket. This is a method of comparing the weighted average exchange rate of one currency in relation to a certain set of other currencies. The use of a currency basket instead of the dollar reflects the trend away from the dollar to a multi-currency standard.

Thus, in a free floating system, the exchange rate is formed under the influence of market demand and supply. At the same time, the foreign exchange forex market is closest to the model of a perfect market: the number of participants, both on the demand side and on the supply side, is huge, any information is transmitted in the system instantly and is available to all market participants, the distorting role of central banks is insignificant and unstable.

In a managed float system, in addition to supply and demand, the value of the exchange rate is strongly influenced by the central banks of countries, as well as various temporary market distortions. An example of a fixed rate system is the Bretton-Woods currency system of 1944-1971. The target zone system develops the idea of ​​fixed exchange rates. This type includes the mode of functioning of the exchange rates of the countries participating in the European Monetary System.