International Monetary System

The international monetary system is a collectioncertain legislative acts and regulations governing the work on the foreign exchange markets of central banks that ensure the issuance of cash. The task of the main provisions by which they are guided in their activities is to facilitate the processes of external trade transactions to such an extent that all participants in the transaction have the maximum benefit. The effectiveness of world trade should promote the prosperity of the economic systems involved in it.

The international monetary system was foldedhistorically through the organization of monetary relations between different countries. Its main principles are enshrined in the agreements existing at interstate levels. The appearance and further evolution of the international monetary system testifies to the objective development of the function of international capital, which requires certain conditions within the world monetary sphere.

Economic ties between different countries withouta clear system of financial relationships are impossible. These are economic calculations that are directly related to the functioning of the world currency. Economic relations between states are very diverse. These include foreign trade relations, tourism, the exchange of scientific discoveries, migration of capital, the supply of loans, etc.

The international monetary system, performing the functionworld money, which serve as a criterion of the value of goods, is a means of accumulation, payment and circulation. The main task that it performs is to mediate international settlements.

The international monetary system is a component of a number of its constituent components. The main ones are:

- arrangements between countries;

- monetary and financial interstate organizations;

- the world monetary commodity;

- Exchange Rates;

- interethnic liquidity.

The international monetary and financial system includesin its composition various funds and organizations. These structures unite many states, national societies and institutions created to achieve common goals related to politics, economy, social sphere, culture, science, etc.

International organizations formown funds, the purpose of which is the multifaceted coordination actions of all participating countries. This process becomes possible after the signing of agreements, the action of which is aimed at maintaining the common financial, monetary and credit policies of the participating States. Such international organizations are the following: IIB, MFER, IBRD, IMF, UN with all its institutes, IAEA, WFDD, etc.

The world monetary commodity can be accepted tocalculation in any state as a means of compensating for the wealth taken out of the country. It serves international relations. Initially, gold was used as the international means of calculation. Over time, it was replaced by the currencies of the leading states of the world. At the moment, fiduciary or compositional money (SDR, ECU) has spread. Their use is based on a confidential relationship with the issuer.

Currency does not apply to any new typeMoney. This is a special way of their functioning. National funds, which act in the mediation of credit and international relations, automatically become a currency. Its value is determined in relation to the monetary unit of another country. Certain factors influence the value of the exchange rate. These include:

- solvency of the state;

- supply and demand in the currency market;

- balance of payments;

- Inflation.