International currency market If we formulate as precise a definition as possible, then the international currency market FOREX (Foreign Exchange Market) is a set of operations for the purchase and sale of foreign currency, and the provision of loans on specific conditions (amount, exchange rate, interest rate) with execution for a certain date. If we formulate as precise a definition as possible, then the international currency market FOREX (Foreign Exchange Market) is a set of operations for the purchase and sale of foreign currency, and the provision of loans on specific conditions (amount, exchange rate, interest rate) with execution on a certain date .

Market participants commercial banks, commercial banks, currency exchanges, currency exchanges, central banks, central banks, foreign trade firms, investment funds, foreign trade firms, investment funds, brokerage companies; brokerage companies; direct participation in foreign exchange transactions of individuals is constantly growing. direct participation in foreign exchange transactions of individuals is constantly growing.

FOREX is the largest market in the world, it accounts for up to 90% of the entire world capital market in terms of volume. Thousands of participants in this market buy and sell currency within 24 hours a day, concluding transactions within a few seconds anywhere in the world. Combined into a single global network by satellite communication channels using the most advanced computer systems, they create a turnover of foreign exchange funds, which in total exceeds 10 times the total annual gross, national product of all countries of the world (the figure is taken from a 5-year-old textbook).

Why is it necessary to move such huge masses of money through electronic channels? Currency transactions provide economic links between participants in various markets located on different sides of state borders: interstate settlements, settlements between firms from different countries for goods and services supplied, foreign investment, international tourism and business trips. Without currency exchange operations, these most important types of economic activity could not exist. Currency operations provide economic ties between participants in various markets located on opposite sides of state borders: interstate settlements, settlements between firms from different countries for goods and services supplied, foreign investment, international tourism and business travel. Without foreign exchange transactions, these essential types of economic activity could not exist. But the money that serves here as an instrument becomes a commodity itself, as the supply and demand for transactions with each currency in various business centers changes over time, and therefore the price of each currency changes, and changes quickly and in an unpredictable way. But the money that serves here as an instrument becomes a commodity itself, as the supply and demand for transactions with each currency in various business centers changes over time, and therefore the price of each currency changes, and changes quickly and in an unpredictable way.

The international monetary device today is based on the regime of floating exchange rates: the price of the currency is determined primarily by the market. Therefore, the exchange rate either rises (the currency rises in price), then falls down. This means that you can buy a currency cheaper and after a while sell it more expensive, while making a profit.

History of Creation The international currency market as we know it emerged after 1973, but the beginning of its newest history was laid in the summer of 1944 in the American resort town of Bretton Woods. The outcome of the Second World War was not in doubt, and the Allies took up the post-war financial structure of the planet. While the economies of all leading states after the war were to be in ruins or in the grip of military production, the US economy was emerging from the war on the rise. The international currency market as we know it emerged after 1973, but the beginning of its new history was laid in the summer of 1944 in the American resort town of Bretton Woods. The outcome of the Second World War was not in doubt, and the Allies took up the post-war financial structure of the planet. While the economies of all leading states after the war were to be in ruins or in the grip of military production, the US economy emerged from the war on the rise. And since the winners, the victims, and the vanquished needed food, fuel, raw materials and equipment, and only the American economy could provide all this in sufficient quantities, the question arose of how other countries would pay for this.

After the war, they had little of what could be of interest to the United States; The United States already had the largest gold reserves, and many countries hardly had it at all. In any attempt to establish trade through currency exchange, the price of the dollar, due to the high demand for American goods, was bound to rise to such a level that all other currencies would depreciate and the purchase of American goods became impossible.

To prevent the post-war collapse of currencies, the financial forum at Bretton Woods created a number of financial institutions, including the International Monetary Fund (IMF), which was originally a pooled currency resources, to which all countries (but to the maximum extent the United States) contributed their share, and from which each country could borrow to maintain its currency. The gold content of the US dollar was fixed ($35 per troy ounce), and other currencies were pegged to the dollar in a certain ratio. representing the combined currency resources, where all countries (but to the maximum extent the United States) contributed their share, and from where each country could take to maintain its currency. The US dollar had a fixed gold content ($35 per troy ounce), while other currencies were pegged to the dollar in a certain ratio (fixed exchange rates, foreign exchange rates).

Exchange rate - The price of one national currency, expressed in the monetary units of other countries. -Euro1 EUR = rub. -US dollar1 USD = rub. -Chinese Yuan10 CNY = RUB - Pound Sterling1 GBP = RUB -Japanese yen100 JPY = RUB

Exchange rate Depends, as a rule, on the ratio of exports and imports between different countries, since it is the volumes of mutual export-import transactions that determine the supply and demand of mutually comparable currencies. It usually depends on the ratio of exports and imports between different countries, since it is the volumes mutual export-import operations determine the magnitude of supply and demand of mutually comparable currencies. Export - import of Russia in 2009 and September 2010

Convertibility of the national currency Depends on the general economic situation, including the level of inflation. Depends on the general economic situation, including the level of inflation. From the state of affairs in the field of foreign economic activity. From the state of affairs in the field of foreign economic activity. Why is the ruble cheaper than the dollar, and the British pound more expensive than the euro? Single monetary unit of the USSR 1991

By the ratio of the exchange rate it is impossible to judge the fortress of a country. It just happened historically. In 1997, Russia made a denomination (crossing out zeros) 1 k If she did this 1 k, then the dollar would today cost 2 rubles 30 kopecks. And if in the amount of 1:, then 23 kopecks at all. The Central Bank calculated that 1:1000 is the most convenient. Otherwise, 10 kopecks would be a fortune.

Devaluation The official reduction by the state of the exchange rate of its banknotes for the currencies of other countries, i.e. an increase in the number of these signs that can be obtained for each unit of foreign currency. - An official reduction by the state of the exchange rate of their banknotes for the currencies of other countries, i.e. an increase in the number of these signs that can be obtained for each unit of foreign currency.

Who works in the foreign exchange market? A broker is an intermediary who facilitates the completion of various transactions between interested parties - clients on their behalf and at their expense and receives remuneration in the form of commissions. A dealer is an individual or legal entity that participates in business not as an ordinary intermediary (“broker”), but acts on its own behalf, investing its own funds in the purchase of shares, precious metals, securities and currencies.

Currency markets- this is a special sphere of organizational and economic relations for the sale and purchase of currency and payment documents denominated in foreign currencies (checks, bills, assets, etc.). Currency markets include a mechanism for international settlements in foreign trade. Organizationally, this mechanism is a set of banks and companies engaged in the purchase and sale of currency. The central place in them is occupied by large multinational banks with branches in different countries of the world.

Currency transactions are divided into transactions related to the spot market, and futures, or forward transactions.

Currency transactions of the spot market- These are markets for the immediate delivery of currencies (within two business days), which include currency clearing and currency hedging.

Currency clearing(or clearing services) is a system of non-cash cash settlements in foreign trade, carried out on the basis of international payment agreements in the most preferred currency for the client. Currency clearing is usually associated with foreign exchange settlements in the process of international trade.

Currency hedging– actions aimed at avoiding either net assets or net liabilities in foreign currency, thereby preventing undesirable consequences arising from the rapidly changing conditions of international foreign exchange markets.

Forward currency transactions- these are futures contracts, when a currency exchange at a predetermined rate is concluded on a certain date in the future.

Currency exchange and international payments are carried out on the basis of exchange rates. An exchange rate is the price of a country's currency expressed in another country's currency.

There are three main modes of setting exchange rates:

A fixed exchange rate is a rate at which the currencies of different countries are related by the amount of pure gold they contain. It took place under the gold standard and was based on the gold parity - the ratio of two monetary units by the amount of pure gold contained in them, established by this state and fixed by the state.

Fixed - the ratio of the exchange rates of national currencies set in gold content against the US dollar in accordance with the official price of gold in dollars;

A floating exchange rate system is a rate that is determined not by gold content, but by supply and demand for a currency.

Factors affecting the demand and supply of foreign currency.

The exchange rate is influenced by the totality of internal and external economic relations of the country. The amount of demand for the currency is determined by the country's needs in importing goods and services; tourism spending; making various payments. The size of the supply of currency depends on the amount of loans that the country receives; export volumes.

The dynamics of the exchange rate is formed in the world foreign exchange market under the influence of numerous factors. These include: the level of labor productivity in the country; growth rates of the gross national product; the real purchasing power of money and the rate of inflation in the country. These factors also influence the development of exchange processes between the money supply and the mass of goods and services, and thus determine the purchasing power of the national currency.

Purchasing power parity- the ratio of the exchange rate between two countries, equalizing their purchasing power for a certain set of goods and services. In this regard, the exchange rate ratios of currencies are determined by comparing the prices of goods of the two countries in the form of using the "consumer basket" of goods and services. Depending on the set of commodity nomenclature, purchasing power parity can be private - for a group of consumer goods and general - for the entire public product. Purchasing power parity shows how much the purchasing power of one country's currency expressed in other countries' currencies is equal to.

The definition of the purchasing power parity of the exchange rate is very approximate, because. it depends on the structure and cost of the “consumer basket”, which, as a rule, differ significantly from each other in different countries.

Currency convertibility represents the ability of the national currency to be freely exchanged for the currencies of other countries and used in various international settlements.

From the point of view of the reversibility regime, there are freely convertible currencies (hard currency), partially convertible and non-convertible.

SLE has full internal and external reversibility, they are freely used in all types of foreign economic transactions associated with both current settlements and the transfer of capital between countries.

Net currency convertibility most often involves its free use only by foreign legal entities and individuals, mainly in current and only in foreign trade settlements.

Non-convertible are the currencies of those countries that apply strict prohibitions and restrictions on the import, export, exchange, sale and purchase of national and foreign currencies. These mainly include the currencies of developing countries.

Currently, Russia is focused on the transition to a market type of economy and integration into the world economy. Under these conditions, the transition to the convertibility of the ruble is inevitable. The implementation of the convertibility of the ruble involves: the implementation of a number of general economic measures aimed at stabilizing the economy, updating the production apparatus and a sharp increase in labor productivity on this basis, bringing the quality and efficiency of production to the world level, creating goods that can compete on the world market. The deterrents for the introduction of ruble convertibility include: instability of market relations in intra-economic relations, violation of the principles of currency regulation in the country and in foreign economic activity.

The transition to a developed market is impossible without currency convertibility, so its implementation is inevitable. In the current economic conditions in Russia, the convertibility of the ruble must be carried out gradually, starting with partial convertibility.

Description of the presentation on individual slides:

1 slide

Description of the slide:

2 slide

Description of the slide:

By representation By reversibility national foreign collective reversible partially reversible irreversible

3 slide

Description of the slide:

The national currency is the monetary unit of a country. For example, pound sterling (United Kingdom), peseta (Spain), forint (Hungary), escudo (Portugal), ruble (Russia). Foreign currency is the banknotes of foreign countries, as well as various means of payment (bills, checks, etc.), expressed in foreign monetary units. For example, foreign currencies for Russians are euro, dollar, shekel. A collective currency is an artificially created international currency used for settlements among a certain circle of states and organizations. So, for members of the IMF and a number of international institutions in 1970, such a non-cash currency unit as the SDR was established. Within the framework of the European Monetary System, until recently, the ECU was widely used, and since 1999 the euro.

4 slide

Description of the slide:

Convertible currencies or convertible (freely convertible-hard currency). These are the currencies of economically strong countries (US and Canadian dollars, Japanese yen, etc.) Irreversible currencies (non-convertible). These are closed currencies isolated from the world. Prohibition of free purchase and sale, import and export of currency valuables, strict rationing of exchange when traveling abroad, etc. (in the Soviet Union and other socialist countries). Partially convertible currencies (partially convertible). Those. exchange not for all, but only for a part of foreign currencies; regulation of export volumes of gold, banknotes and securities; restrictions on money transfers, payments abroad.

6 slide

Description of the slide:

Fixed exchange rate The Central Bank establishes the official exchange rate of the national currency, fixing the content of its currency in other monetary units and the limits of free fluctuation of the exchange rate. When the price of a currency approaches the upper or lower limit of these limits, the Central Bank intervenes in the foreign exchange markets. Exchange rate (cents per mark) S S’ Su D 73 71 70 69 E Number of marks. . The mark rate settled at point E. The volume of stamp sales by the Central Bank during the intervention in the foreign exchange market amounted to Su (as a result, the stamp supply curve will shift to position S’). The bank paid off the excess of demand over supply within fixed limits (from 71 to 69 cents per mark).

7 slide

8 slide

Description of the slide:

"managed floating" Free floating (flexible) exchange rate This is an exchange rate system that excludes any intervention of the Central Bank in the process of establishing an equilibrium exchange rate in the foreign exchange markets. This system provides for the possibility for the Central Bank to intervene in the foreign exchange market in order to smooth out unwanted fluctuations in the exchange rate. In this case, the exchange rate is not rigidly fixed, but if it rises or falls too much, the Central Bank will, respectively, sell or buy up its own currency in exchange for a foreign one in order to lower or increase the national currency rate. "Managed floating" can be in the form of: a) "currency corridor", b) "sliding peg", c) "dirty floating".

9 slide

Description of the slide:

An official reduction by the state of the exchange rate of the national currency, i.e., an increase in the amount of national currency that can be received for each unit of foreign currency. An official increase by the state of the exchange rate of the national currency, i.e., a decrease in the amount of national currency that can be received for each unit of foreign currency.

10 slide

Description of the slide:

Factors influencing the formation of the exchange rate The ratio of the volumes of mutual exports and imports between countries, which forms the supply and demand for currency inflation The behavior of speculators in the foreign exchange markets who receive income from changes in exchange rates

11 slide

Description of the slide:

12 slide

Description of the slide:

1. You are going abroad. You need to exchange 10,000 rubles for Dutch guilders. The exchange rate of the guilder to the ruble in Russia is 17 rubles per guilder. The dollar to ruble exchange rate in Russia is 28 rubles per dollar. And the exchange rate of the dollar to the guilder in Holland is 1.7 guilders per dollar. What is more profitable: to exchange rubles immediately for guilders or first for dollars. And then to the guilders? 2. You need to exchange dollars for rubles. In the first exchange office, the currency purchase rate is 28.40 rubles per dollar, no commission is charged. In the second exchange office, the purchase rate is 28.45 rubles per dollar. But for the operation of buying currency, a commission of 5 rubles is charged. At what point is it more profitable for you to exchange currency if you change 50 dollars? 100 dollars? 200 dollars?

13 slide

Description of the slide:

* How is the monetary policy of the Central Bank related to its domestic monetary policy? 3. Germany exports cars to the US for DM 30,000. The US exports cars to Germany at a price of $20,000. If the exchange rate is 1 mark = $0.5, then the price of a German car in the US will be $15,000 and the price of an American car in Germany will be 40,000 marks. If the exchange rate changes to 1 mark = $0.6, what will be the price of a German car in the US and an American car in Germany? How will the price of German exports in the US market and the value of US imports in Germany change?

Any national currency is currency and acquires a number of additional functions and characteristics as soon as it begins to be considered from the standpoint of a participant in international economic relations (IER).

From the point of view of the material-material form currency is any payment document or monetary obligation, expressed in one or another national monetary unit, used in international settlements (banknotes, treasury notes, checks, bills, letters of credit).

These payment documents are sold and bought on a special market - foreign exchange.

Currency market is the totality of all relations arising between the subjects of foreign exchange transactions.

From an institutional point of view, the foreign exchange market is a set of commercial banks and other financial institutions connected to each other by a network of communication means through which currencies are traded.

One of the forms of organization of currency trading is the interbank foreign exchange market. Part of it is organized in the form of a currency exchange. Most of the foreign exchange transactions are carried out in a non-cash form (on current and urgent bank accounts).

The national regime for regulating foreign exchange transactions for various types of transactions for residents and non-residents determines the degree of currency convertibility.

Currencies can be divided into 3 groups:

1. Freely convertible currencies (hard currency) - the currencies of those countries where there are no restrictions on foreign exchange transactions for any type of transactions (trading, non-trading, capital movements) for residents and non-residents.

2. Partially convertible currencies (CCV) - the currencies of those countries where there are quantitative restrictions or special licensing procedures for currency exchange for certain types of transactions or for various subjects of the transaction. PCI has a sign of internal or external reversibility. Internal convertibility means that residents of the country can buy foreign currency without restrictions and make settlements with foreign partners. External convertibility - free currency exchange is valid only for non-residents.

3. Non-convertible (closed) currencies - the currencies of those countries where there are restrictions on almost all types of transactions.

Exchange rate- this is the ratio of the exchange of 2 monetary units or the price of one monetary unit, expressed in the monetary unit of another country.

Fixing the exchange rate of the national currency in a foreign one is called a currency quotation. Quotes are divided into 2 types:

Direct ($1 = 30 rubles);

Inverse (1 ruble = $).

In most countries, direct quotations are used, in the UK - reverse, in the USA - both.

Classification of exchange rates.

1. Depending on the parties to the transaction, the buyer's rate and the seller's rate are distinguished. The seller's rate is higher. The difference between these rates is called the margin (profit).

2. According to the types of payment documents, the rate of telegraphic transfer, the rate of checks, the rate of banknotes are distinguished.

3. Cross rate is a quote of 2 foreign currencies, none of which is the national currency of the transaction participant. This rate is obtained by calculation. For example, the dollar to the yen through the ruble.

4. The nominal exchange rate is the relative price of the currencies of 2 countries. The real exchange rate is the relative price of goods produced in 2 countries. It tells the ratio in which the goods of one country can be exchanged for the goods of another.

5. Depending on the type of currency transactions, there are:

A) SPOT rate - the rate of cash (cash) transactions, in which the currency is delivered immediately (within 2 working days). This is the base rate of the foreign exchange market, it is used to settle current trading and non-trading operations.

B) forward rate - the rate of futures transactions, in which the delivery of currency is carried out after a certain period of time on a fixed date.

Insurance (hedging) of currency risks caused by fluctuations in exchange rates is an action aimed at preventing open positions in foreign currency. There are 2 types of open positions:

- "long" (net assets in foreign currency, i.e. claims exceed liabilities);

- “short” (net liabilities, i.e. liabilities exceed claims).

Speculation in the foreign exchange market in a broad sense means actions that are aimed at opening a "long" or "short" position in foreign currency. The profitability of speculative operations depends on how much the foreign exchange rate falls above the difference in interest rates on deposits in the national currency, on the one hand, and in foreign currency, on the other.

The foreign exchange market is a system of stable economic and organizational relations resulting from operations for the purchase and sale of foreign currency and various currency values.

When entering the foreign exchange market, economic entities pursue various goals:

continuous implementation of international payments (enterprises - clients of banks);

Diversification of foreign exchange reserves and their replenishment (commercial and central banks); making a profit in the form of a difference in exchange rates and interest rates on various debt obligations (commercial banks, enterprises); hedging (insurance) against currency and credit risks;

conducting monetary policy (central banks,

Fed, Treasury);

receiving international loans.

The world loan capital market has its own specific institutional structure, which is based on professional market participants acting as intermediaries between borrowers and creditors from different countries. These include: financial companies, stock exchanges, major transnational banks and other financial institutions (Table 3).

The foreign exchange market provides foreign exchange and credit and settlement services for export-import transactions, as well as foreign exchange transactions related to capital investment outside the national economy. In addition, the foreign exchange market provides opportunities for hedging, i.e. insurance of foreign exchange risks. Finally, the foreign exchange market 174 provides an opportunity to carry out currency speculation, that is, to play on the future price of the currency.

The main one is the International Monetary Fund (IMF). The IMF is an intergovernmental organization designed to regulate monetary and credit relations between member states and provide them with financial assistance in foreign exchange difficulties caused by a balance of payments deficit by providing short- and medium-term loans in foreign currency.

The IMF - a specialized agency of the UN - was established in 1944 at the Bretton Woods Conference. The supreme governing body of the IMF is the Board of Governors, in which each member country is represented by a governor and his deputy, appointed for 5 years. The capital of the IMF is made up of subscription contributions from member countries. Each country has a quota expressed in SDRs.

The World Bank Group plays an equally important role in the AIM. This is a multi-structural international credit organization that unites 4 financial institutions:

1) International Bank for Reconstruction and Development (IBRD);

2) the International Development Association (MAP), established as a branch of the IBRD;

3) International Finance Corporation (IFC);

4) Multilateral Investment and Guarantee Agency (MIGA).

Private clubs of creditors also participate in international monetary, financial and credit relations:

The Paris Club of creditor countries is an informal organization of industrialized countries, where the problems of settlement and deferment of payments on the state debt of countries are discussed.

The London Club is an informal organization of the largest creditor banks (600), which discusses the problems of settling the private external debt of debtor countries.

Among organizations of regional importance, the European Bank for Reconstruction and Development (EBRD) should be singled out, which was established in 1990, its members are 57 countries. The main task of the EBRD is to promote the transition of European post-socialist countries to an open, market-oriented economy, as well as the development of private and entrepreneurial initiative (Table 4).

Currency market is the totality of all relations arising between the subjects of foreign exchange transactions.

From an institutional point of view, the foreign exchange market is a set of commercial banks and other financial institutions connected to each other by a network of communication means through which currencies are traded.

One of the forms of organization of currency trading is the interbank foreign exchange market. Part of it is organized in the form of a currency exchange. Most of the foreign exchange transactions are carried out in a non-cash form (on current and urgent bank accounts).

The national regime for regulating foreign exchange transactions for various types of transactions for residents and non-residents determines the degree of currency convertibility.

Currencies can be divided into 3 groups:

1. Freely convertible currencies (hard currency) - the currencies of those countries where there are no restrictions on foreign exchange transactions for any type of transactions (trading, non-trading, capital movements) for residents and non-residents.

2. Partially convertible currencies (CCV) - the currencies of those countries where there are quantitative restrictions or special licensing procedures for currency exchange for certain types of transactions or for various subjects of the transaction. PCI has a sign of internal or external reversibility. Internal convertibility means that residents of the country can buy foreign currency without restrictions and make settlements with foreign partners. External convertibility - free currency exchange is valid only for non-residents.

3. Non-convertible (closed) currencies - the currencies of those countries where there are restrictions on almost all types of transactions.

Exchange rate- this is the ratio of the exchange of 2 monetary units or the price of one monetary unit, expressed in the monetary unit of another country.

Fixing the exchange rate of the national currency in a foreign one is called a currency quotation. Quotes are divided into 2 types:

Direct ($1 = 30 rubles);

Inverse (1 ruble = $).

In most countries, direct quotations are used, in the UK - reverse, in the USA - both.

Classification of exchange rates.

1. Depending on the parties to the transaction, the buyer's rate and the seller's rate are distinguished. The seller's rate is higher. The difference between these rates is called the margin (profit).

2. According to the types of payment documents, the rate of telegraphic transfer, the rate of checks, the rate of banknotes are distinguished.

3. Cross rate is a quote of 2 foreign currencies, none of which is the national currency of the transaction participant. This rate is obtained by calculation. For example, the dollar to the yen through the ruble.

4. The nominal exchange rate is the relative price of the currencies of 2 countries. The real exchange rate is the relative price of goods produced in 2 countries. It tells the ratio in which the goods of one country can be exchanged for the goods of another.

5. Depending on the type of currency transactions, there are:

A) SPOT rate - the rate of cash (cash) transactions, in which the currency is delivered immediately (within 2 working days). This is the base rate of the foreign exchange market, it is used to settle current trading and non-trading operations.

B) forward rate - the rate of futures transactions, in which the delivery of currency is carried out after a certain period of time on a fixed date.

Insurance (hedging) of currency risks caused by fluctuations in exchange rates is an action aimed at preventing open positions in foreign currency. There are 2 types of open positions:

- "long" (net assets in foreign currency, i.e. claims exceed liabilities);

- “short” (net liabilities, i.e. liabilities exceed claims).

Speculation in the foreign exchange market in a broad sense means actions that are aimed at opening a "long" or "short" position in foreign currency. The profitability of speculative operations depends on how much the foreign exchange rate falls above the difference in interest rates on deposits in the national currency, on the one hand, and in foreign currency, on the other.