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Money and credit - Ivanov V.M.

12.3. Elements of currency systems

Since the monetary system, as stated above, is a state-legal form of organization of currency relations, it is customary to subdivide it into national, international (regional) and world.

The national monetary system is a state-legal form of organization of currency relations of one state with others, as well as with international economic and political structures. It is legally determined by national law, taking into account international law. Its purpose is to ensure uninterrupted settlement and payment relations of all economic entities of the country with the outside world, the accumulation of gold and foreign exchange reserves and their use in the public interest, and 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 national currency exchange rate regime;

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

• forms and organization of international settlements;

• the status of national institutions regulating foreign exchange relations, etc.

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

The main elements of the international monetary system can be:

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

• international currency funds;

• an agreed regime for regulating exchange rates;

• international credit and settlement institutions, etc.

The world monetary system is a form of organizing currency relations between all or a significant part of the countries of the world specially developed by states and enshrined in international treaties. It includes a number of separate elements, each of which is legally determined by 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;

• unified forms and rules of international payments;

• conditions for mutual convertibility of currencies;

• the status of international monetary organizations, etc.

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

Currency systems achieve the greatest efficiency provided that the national, international (regional) and world systems are correctly coordinated when they act as a single mechanism. Therefore, the CMEA member countries and the subjects of the former USSR, which for a long time tried to create their own specific international currency system, in modern conditions are trying to enter the world monetary system, in particular its international structures, and adjust their national currency systems accordingly.