Money and credit - Ivanov V.М.

12.3. Elements of currency systems

Since the currency system, as described earlier, is a state-legal form of organizing currency relations, it is customary to subdivide it into national, international (regional) and world.

The national currency system is a state-legal form of organization of currency relations between one state and others, as well as with international economic and political structures. It is legally defined by national legislation, taking into account the norms of international law. Its purpose is to ensure the smooth settlement and payment relations of all economic entities of the country with the outside world, the accumulation of gold and currency reserves and their use in the public interest, the regulation of the country's cooperation with the world economic community.

The main elements of the national monetary system are:

• national currency - the monetary unit of the country;

• composition, mode of formation and use of gold and foreign exchange reserves;

• currency parity and the exchange rate regime of the national currency;

• the regime of convertibility of the national currency and the nature of currency restrictions;

• forms and organization of international settlements;

• the status of national institutions regulating currency relations, etc.

The international (regional) currency system is a contractual legal form of the organization of currency relations between the states of any one group. An example of such a system is the European Monetary System, established in 1979, which includes the EEC member countries; The monetary system of the CMEA member countries, which existed from 1963 to 1990. It is developed by a group of states and is fixed by corresponding treaties between them. Closely associated with the national monetary systems and is an integral part of the world monetary system.

The basic elements of the international monetary system can be:

• international accounting unit (euro, transferable ruble, etc.);

• International Monetary Funds;

• harmonized regime of exchange rate regulation;

• international credit and settlement institutions, etc.

The world monetary system is a form of organization of currency relations specially developed by states and fixed by international agreements between all or a significant part of the countries of the world. Includes a number of separate elements, each of which is legally defined by the relevant international treaties and agreements:

• forms of international means of circulation and payment (gold, national currencies, international currency - euro, SDR);

• legalized regime of currency parities and rates;

• Uniform forms and rules of international settlements;

• conditions for mutual convertibility of currencies;

• the status of international monetary and credit organizations, etc.

The principles and organizational foundations of the modern world monetary system were defined by the Jamaican Agreement of the member countries of the International Monetary Fund (1976).

The most effective monetary systems are achieved if the national, international (regional) and world systems are properly coordinated when they act as a single mechanism. Therefore, the CMEA member countries and the subjects of the former USSR, which have been trying for a long time to create their own specific international monetary system, are trying to enter the world monetary system, in particular, into its international structures, and, accordingly, to adjust their national currency systems.