Lesson topic: Modern currency relations

Class: 10

The purpose of the lesson: to familiarize students with the principle of multicurrency, with the exchange rate as a national monetary unit, to consolidate students’ knowledge of the reasons for international trade and the structure of the money supply, to continue training in solving practical problems; practice teamwork techniques.

Lesson objectives: cognitive, developmental, educational.

Equipment: map of European currencies, table of exchange rates, individual tests, information about the money of neighboring countries, textbook, block assignments for groups.

Lesson plan:

1. Organizing time.
2. Checking homework.
3. Explanation of new material.
4. An educational task to consolidate the studied material.
5. Constructing charts of national currencies converted to dollar equivalent.
6. Mini-messages from students about the ruble exchange rate in Russia.
7. Conclusion on the topic, grades for the lesson, summing up.

During the classes

1. Organizational moment.

Teacher: informs students the topic of the lesson, sets tasks, announces the purpose of the lesson.

2. Checking homework.

Students: answer homework, remember the reasons for the emergence of international trade, types of money, structure of the money supply.

3. Explanation of new material.

Teacher: leads students to understand that in different countries oh different money.

Recording in a notebook after oral pronunciation by analogy with the commodity market:

Currency market - this is a special environment where domestic and foreign monetary units are sold and their exchange rate is established. View a map of European currencies.

Annex 1

Exchange rate – is the price of a monetary unit in the monetary units of another country.

Appendix 2

Questions for the class:

1. If you are buying US currency, what exchange rate are you interested in? (motto)
2. If you deposit $100 at the bank, what rate are you interested in? (exchange)

Viewing exchange rates against the ruble on each table (Appendix 3)

Teacher: gives information about the “Gold Standard” with notes in a notebook.

"Exchange cash money on gold is called the gold standard." All countries of the world abandoned it in the 2nd half of the 20th century and a powerful foreign exchange market emerged.

What does it depend on? in your notebook: Supply and demand in the foreign exchange market depend on the volume of mutual trade.

4. An educational task to consolidate the studied material.

Analysis of the diagram of page 304 of the textbook Lipsits I.V. rice. 11 – 4 and oral answer to the questions:

1. How many countries are participating? What does Japan have? What does the USA have?
2. What do Japanese exporting firms need? US exporters?
3. What do Japanese importing companies need? US importers?
4. What does the arrow in the table mean? (determines the main factors that shape the exchange rate.)
5. Who benefits from devaluation? (to Russian exporters)
6. Why? (because goods of foreign companies are becoming more expensive in the domestic market.)
7. And who is it disadvantageous to? (to Russian importers)
8. Why? (since goods from domestic producers are foreign markets are getting cheaper.)

5. Constructing diagrams of national currencies converted to dollar equivalent.

The class is divided into groups, each receives a group task (Appendix 4), then students build a bar chart and conclude that they used different money, but reduced to the same equivalent, they showed the same result.

6. Mini-messages from students about the ruble exchange rate in Russia.

7. Conclusion on the topic, grades for the lesson, summing up.

Currency relations between countries make it possible to satisfy their needs for funds.

The exchange rate (quote) is determined by purchasing power, inflation rates, and the relationship between supply and demand for the currency.

Key Feature international trade compared to domestic trade is that it is served by different monetary units, i.e. different national currencies.

v Each country requires that all payments on its territory be carried out only in its national currency.

Because of this, international trade always involves solving problems of a dual nature, related, firstly, to the organization itself purchase and sale goods and, secondly, with foreign exchange support trading operations. For example, when exporting copper to Europe, Russian firms purchase it within the country, paying in rubles, and sell it on the world market for dollars. To continue their operations in Russia, they need to convert their revenue back into rubles. Thus, the exporting company has to solve two problems:

1) sales of goods abroad;

2) transfer of proceeds into national currency, and in such a way that all costs can be covered and remain profitable.

Why create such currency barriers to international trade if all countries are interested in its development? There are several reasons for this.

1. Availability national currency makes it easier for the government to find funds to pay those who receive money directly from the government. These include employees, including the military, the poorest citizens and firms that supply goods and services for government purposes. IN as a last resort the state can simply carry out an additional issue of paper notes.

2. The presence of a national currency allows the state to manage the course of affairs in the country’s economy.

3. The presence of a national currency makes it possible to ensure the full sovereignty of the country, its independence from the will of the governments of other countries.

4. Having your own currency helps to avoid introducing into the country the “inflation infection” that may affect the currencies of other countries.

To conduct international trade in conditions of existence different currencies humanity has created a mechanism for mutual settlements between citizens and firms of different countries. It is usually called the foreign exchange market.

The basis of this mechanism is the proportions of currency exchange, called exchange rates.

Currency (exchange) rate is the price of one national monetary unit, expressed in monetary units of other countries.

Prices on the foreign exchange market, as on any other, depend on the relationship between supply and demand for a particular currency. The size of supply and demand in the foreign exchange market is determined primarily by the volume of mutual trade between countries.

The greater, say, the dollar amount that Japanese firms received from selling their goods to the United States compared to the amount of yen that Americans earned by selling their goods on the Japanese market, the more dollars will have to be paid for each yen. In other words, the higher the price of the yen will be, expressed in dollars, i.e. its exchange rate to the dollar (and the dollar rate is correspondingly lower).

Thus, main factor formation of exchange rates - the ratio of the volumes of mutual exports and imports between different countries.

In Russia, however, the formation of foreign currency exchange rates is influenced by another factor - inflation. In 1992-1997 purchasing foreign currency (US dollars and German marks) became one of the main ways for Russians to save their savings from inflation, since the dollar exchange rate was constantly growing (although it lagged behind ruble inflation).

At the beginning of 1997, the share of expenses for the purchase of foreign currency reached family expenses Russians are approximately 21%.

It was during these years that in our country the dollar exchange rate depended only to a small extent on mutual trade between Russia and the United States. In reality, this rate was the price of a very special product called “saving savings from inflation,” and therefore it changed depending on the income of Russians and domestic firms, i.e. from the volume of their formed free funds. The same picture began to repeat itself in Russia at the end of 2008, when the population realized that the ruble would depreciate - devalue in relation to foreign currencies, and again rushed to buy dollars and euros, and began to convert ruble deposits into foreign currency.

Fluctuations in exchange rates directly affect all citizens of the country, although they do not always immediately realize it. The more a country is included in international division labor, the more actively it trades on the world market, the more the welfare of its citizens depends on the exchange rates of the national currency.

The influence of exchange rates is extremely contradictory. For example, depreciation (devaluation) of the ruble, i.e. increase

"the amount of rubles that must be paid, say, for the purchase of 1 dollar, leads to an increase in ruble prices for imported goods, a decrease in the circle of people able to buy them, and, accordingly, a reduction in imports to Russia. The opportunities for Russians to go abroad on tourist trips are also narrowing travel, for treatment or study - with constant foreign currency expenses for these purposes, their ruble equivalent becomes more and more.

Thus, in October-December 2008, an increasingly rapid devaluation began Russian ruble: if on September 30 to buy 1 dollar. required 25.3 rubles, then at the end of December - already 29.23 rubles, i.e. 16% more. Accordingly, foreign goods immediately began to rise in price in Russian stores - their prices in dollars and euros were now converted into rubles at increasingly higher rates (and in Moscow stores 75% of food products are imported).

Devaluation - reduction purchasing power national monetary unit in relation to the currencies of other countries, expressed in the increase in the price (rate) of foreign currencies expressed in this national monetary unit.

It is worth noting that the depreciation of the ruble improves conditions for the growth of production, sales and exports of Russian goods. Firms producing these goods find themselves in a better position relative to their competitors from abroad, whose ruble prices for goods rise accordingly. And firms exporting domestically produced goods receive large ruble incomes and can expand their activities, hire new workers, and increase ruble wages. More tax revenue will go to the state budget.

Thus, when regulating foreign exchange transactions in the country, the state must again take into account the interests of various groups of citizens and firms, so that the country’s foreign exchange policy turns out to be a compromise that is more or less acceptable to everyone.

ECONOMICS IN FORMULAS AND GRAPHS (additional material for lectures and abstracts)

Figure 17.2 shows how the production capabilities of trading countries are affected by international trade.

Rice. 17.2. The impact of international trade on the production capabilities of trading countries

A comparative analysis of the advantages and disadvantages of opening the domestic market for goods from foreign manufacturers is presented in Table. 17.1.

Table 17.1

Comparative analysis of the advantages and disadvantages of opening the domestic market for goods from foreign manufacturers

Dignity	Flaw
Citizens will be able to buy more goods	Sales of domestic goods will decline
The income of trading firms will increase, and the state will be able to receive a larger amount of taxes from them	The income of domestic manufacturing firms will fall, and the state will receive less taxes from them
The amount of taxes paid by buyers when purchasing imported goods will increase	Layoffs will begin in domestic industry, unemployment will increase, which will lead to a drop in tax revenues from wages with increased costs for unemployment benefits
An increase in the standard of living of citizens who have jobs and the opportunity to buy imported goods will improve the internal political situation in the country and increase the chances of the ruling party winning the next elections	Unemployed people and owners of domestic firms will protest against the policies of the current government, and this will reduce its chances of retaining power
	The country's dependence on the supply of goods from abroad will increase, which may weaken its political independence

^ The impact of duties on imports and changes in the market situation is shown in Fig. 17.3.

The most important feature of international trade compared to domestic trade is that it is serviced by different monetary units, i.e., different national currencies.

Each country requires that all payments on its territory be carried out only in its national currency. It is only in this currency that the taxable income of domestic firms that sell their goods abroad is determined. Because of this, international trade always requires solving problems of a twofold nature related to:

1. organizing the actual purchase and sale of goods;
2. foreign exchange support for trade operations.

Thus, when exporting its flowers to the United States, a Colombian trading company buys them within the country, paying in pesos, and sells them in America for dollars. Thus, the exporting company has to solve two problems: selling flowers and converting proceeds into national currency, and in such a way that it can cover all costs and remain profitable.

Why create such currency slingshots in the way of international trade if all countries are interested in its development? There are several reasons for this:

1. Having a national currency makes it easier for the government to find funds to pay those who receive money directly from the government. These include employees, including the army, the poorest citizens and firms supplying goods and services for government purposes. As a last resort, the state can simply issue additional paper notes;
2. the presence of a national currency allows the state to manage the course of affairs in the country’s economy;
3. the national currency makes it possible to ensure the full sovereignty of the country, its independence from the will of the governments of other countries;
4. Having your own currency helps to avoid inflation, which plagues the currencies of other countries.

To conduct international trade in the conditions of the existence of different currencies, humanity has created a mechanism for mutual settlements between citizens and firms of different countries. It is commonly referred to as the foreign exchange market.

The basis of this mechanism is the proportions of currency exchange, called exchange rates and representing the price of national currencies. Simply put, the exchange rate is the number of banknotes of other countries that must be paid to buy one monetary unit of a certain country.

Currency (exchange) rate- the price of one national monetary unit, expressed in monetary units of other countries.

For example, at the end of January 2005, the following cross rates (mutual prices) of currencies developed on the world foreign exchange market:

This means that 1 US dollar was worth (that is, to purchase it you had to pay so much in a given national currency):

• in British pounds - 0.564 pounds;
• in euros - 0.824 euros.

In Russia, 1 dollar was worth 28,049 rubles at that moment.

And accordingly, let’s say, 1 euro cost 1,209 dollars in dollars, i.e., to purchase it you had to pay 34,109 rubles.

But what determines exchange rates? What factors lead to the fact that the absolute value of the exchange rate, for example, the dollar, expressed in rubles, is, say, 41.7 times higher than in British pounds sterling?

Many centuries world economy I solved this issue very simply. Let us remember that the basis of national monetary systems Two noble metals were used: gold and silver. Many countries minted their coins from these metals. And therefore, the exchange of currencies of different countries was carried out simply according to the weight of the precious metal they contained (this is why in the paintings of ancient masters money changers are depicted with scales in their hands).

When coins began to be replaced from circulation by paper money, the task of exchanging national currencies became more difficult. To solve this problem, a system of the so-called gold standard was invented, which existed for about half a century - from 1879 to 1934.

"Gold standard"- a mechanism for exchanging national currencies in proportion to the weight of gold, which was declared to provide the denomination of banknotes.

At the same time, the idea of ​​​​forming the proportion of currency exchange was still the same - “based on gold”. Only instead of the real circulation of gold, we get the circulation of its representatives - paper money. During the era of the "gold standard", the proportions of currency exchange were unchanged, or, in other words, the exchange rate was fixed. At the same time, governments initially even took upon themselves the obligation to guarantee the exchange of paper money for gold coins at the request of citizens.

The trouble with the “gold standard” system was that in conditions of inflation, citizens preferred to immediately turn depreciating paper money into gold. That is why the classical “gold standard” system was suspended with the outbreak of the First World War. The governments of the warring countries were forced to sharply increase their spending by issuing unbacked paper money, which immediately caused rapid inflation. True, after the end of World War II, another attempt was made to revive, albeit in a modified form, the “gold standard” system. But in the early 70s. The idea of ​​linking exchange rates with gold backing of paper money has finally lost its attractiveness for the leading countries of the world.

The remnants of the idea of ​​the “gold standard” were preserved for the longest time in the USSR: from 1950 to 1992, the ruble was officially equal to 0.222168 g of pure gold.

The worldwide rejection of the “gold standard” led to the birth in the 70s. a powerful foreign exchange market, in which exchange rates began to be formed under the influence of the relationship between supply and demand for a particular currency.

The size of supply and demand in the foreign exchange market depends primarily on the volume of mutual trade between certain countries. Knowing this, we can schematically imagine the model of the birth of the foreign exchange market. This model is shown in Fig. 15-2.

Rice. 15-2. The mechanism of the emergence of the foreign exchange market

Using this figure describing the trade and foreign exchange relations between the United States and Japan, we can see that the participants in this market are:

• Japanese firms that exported their goods to the United States and received dollars for them there. But to reimburse their expenses in their home country, pay taxes and distribute profits, they need yen, not dollars (unless they intend to use the entire dollar amount of their proceeds to buy American goods to import into Japan). Consequently, Japanese firms need to convert dollars into yen;
• American firms that exported goods to Japan and received revenue in yen. They now need to turn this revenue into dollars (convert) in order to import it into the United States and then use it to support their further activities. After all, the American government does not allow payments on its territory in foreign currencies.

So, American exporting firms have yen, but need US dollars to bring them into their country. And their Japanese counterparts have US dollars, but need yen, since this is the only currency recognized in their country. Only the foreign exchange market can satisfy the needs of both groups of exporters, where some want to buy yen for dollars, and others want to buy dollars for yen. Accordingly, on the US foreign exchange market, the Japanese will try to sell the dollars they received and buy yen, and on the Japanese foreign exchange market, the Americans will conduct transactions to sell yen and buy dollars. This means that in the foreign exchange market the demand for yen, denominated in dollars, and the demand for dollars, denominated in yen, will collide.

The larger, say, the supply of dollars that needs to be converted into yen, compared with the supply of yen offered for sale specifically for dollars (after all, some companies need to sell yen, for example, for euros), the higher the price of the yen, expressed in dollars, i.e. i.e. the exchange rate of the yen to the dollar.

Thus, the main factor in the formation of exchange rates is the ratio of the volumes of mutual exports and imports between different countries. If, for example, significantly more American goods are sold in Russia than Russian goods are sold in the United States, then the large number of rubles that American exporting firms need to turn back into dollars is countered by a smaller number of dollars from Russian exporting firms that need to be converted into rubles. Then for every dollar you have to pay several rubles. The greater the gap between the amounts of rubles and dollars offered for mutual exchange, the higher the dollar exchange rate, i.e. the price expressed in rubles.

Currency convertibility (reversibility) is the ability to convert (exchange) the currency of a given country into the currencies of other countries; they distinguish between freely or completely convertible (convertible) currencies, partially convertible and non-convertible (irreversible).

Fully convertible “freely usable” according to IMF terminology) are the currencies of countries in which there are practically no currency restrictions on all types of transactions for all currency holders (residents and non-residents) (USA, Germany, Japan, UK, Canada, Denmark, the Netherlands, Australia, New Zealand, Singapore, Malaysia, Hong Kong, Arab oil-producing countries.).

With partial convertibility in the country, restrictions remain on certain types of transactions and/or for individual currency holders. If conversion opportunities for residents are limited, then convertibility is called external; if for non-residents, it is called internal. Most industrialized countries moved to this type of partial convertibility in the mid-1960s.

A currency is called non-convertible if the country has almost all types of restrictions and, above all, a ban on buying and selling foreign currency, its storage, export and import. Non-convertible currencies are common in many developing countries.

Exchange rate is the price (quote) of a monetary unit of one country, expressed in the monetary unit of another country, precious metals, valuable papers Oh.

For converted currencies, the exchange rate is based on exchange rate parity. However, exchange rates almost never coincide with their currency parity. With an active balance of payments, foreign currency rates on the foreign exchange market of a given country fall, and the rate of the national currency rises. The opposite occurs when a country has a passive balance of payments. Therefore, in most countries, along with a fixed official exchange rate of the national currency, there is also a free one. According to official parity, settlements are carried out by central national banks and other monetary and financial institutions between different countries and with international organizations. Settlements between individuals and organizations are carried out at a free exchange rate.

Fixing a national monetary unit in a foreign one is called a currency quotation (direct and reverse (indirect)). Direct quotation is the price of foreign currency prevailing on the national market. It shows the amount of measuring currency per unit of quoted currency. The inverse (indirect) quotation reflects the number of units of the quoted currency per unit of the measuring currency. The exchange rate of one currency in relation to another can also be determined through a third currency. In this case, it is called a cross rate. When monitoring the level of the exchange rate, two rates are recorded:

Seller's rate (at which the bank sells currency);

Buyer's rate (at which the bank buys currency).

They differ because here foreign exchange transactions are considered as a means of making a profit. The difference between these rates forms the margin.

Exchange Rate Forms

Fluctuating - changes freely under the influence of supply and demand and is based on the use of the market mechanism.

Floating is a type of exchange rate that fluctuates due to the use of a foreign exchange regulation mechanism. Thus, in order to limit sharp fluctuations in the exchange rates of national currencies, which cause unpleasant consequences in monetary, financial and economic relations, countries that are members of the European Monetary System have introduced the practice of harmonizing relative mutual fluctuations in exchange rates.

Fixed - an officially established relationship between national currencies, based on currency parities determined by law. It allows the content of national monetary units to be fixed directly in gold or US dollars, with strict limitation of fluctuations in market exchange rates within specified limits (of the order of one percent).

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

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

Fixed exchange rate fluctuates within narrow limits. Floating exchange rates depend on market supply and demand for currency and can fluctuate significantly in size.

Exchange rate is the exchange ratio between two currencies, for example 100 yen per 1 US dollar or 16 Russian rubles per 1 US dollar.

Hypothetically, there are five exchange rate systems:

Free (“clean”) swimming;

Guided swimming;

Fixed rates;

Target zones;

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 forex market is closest to the model of a perfect market: the number of participants on both the demand side and 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 inconsistent.

In a managed floating system, in addition to supply and demand, the exchange rate is strongly influenced by the central banks of countries, as well as various temporary market distortions.

An example of a fixed exchange rate system is the Bretton-Woods currency system of 1944-1971.

The target zone system develops the idea of ​​fixed exchange rates. An example of this is the fixation of the Russian ruble to the US dollar in the range of 5.6-6.2 rubles per 1 US dollar (in pre-crisis times). In addition, the mode of functioning of the exchange rates of the participating countries of the European Monetary System can be attributed to this type.

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. A detailed listing of the current exchange rate regimes of various countries can be found, for example, in IMF publications.

Many exchange rates can be classified according to various criteria:

Classification of types of exchange rates.

CRITERION	TYPES OF EXCHANGE RATE
1. Fixation method	Floating Fixed Mixed
2. Calculation method	Parity Actual
3. Type of transactions	Futures transactions Spot trades Swap transactions
4. Installation method	Official Informal
5. Attitude to purchasing power parity of currencies	Overpriced Understated Parity
6. Attitude towards the parties to the transaction	Purchase rate Selling rate Average rate
7. Taking into account inflation	Real Nominal
8. By sales method	Cash sales rate Cashless sales course Wholesale exchange rate Banknote

One of the most important concepts used in the foreign exchange market is the concept of real and nominal exchange rates.

Real exchange rate can be defined as the ratio of the prices of goods of two countries, taken in the corresponding currency.

Nominal exchange rate shows the exchange rate currently in effect on the country's foreign exchange market.

Exchange rate maintaining constant purchasing power parity: This is the nominal exchange rate at which the real exchange rate remains unchanged.

In addition to the real exchange rate, calculated on the basis of the price ratio, you can use the same indicator, but with a different base. For example, taking it as the ratio of labor costs in two countries.

The exchange rate of the national currency may change differently in relation to different currencies over time. Thus, it can fall in relation to strong currencies, and rise in relation to weak currencies. That is why, to determine the dynamics of the exchange rate as a whole, the exchange rate index is calculated. When calculating it, each currency receives its weight depending on the share of foreign economic transactions of a given country that accounts for it. The sum of all weights is one (100%). Exchange rates are multiplied by their weights, then all the resulting values ​​are summed up and their average value is taken.

IN modern conditions The exchange rate is formed, like any market price, under the influence of supply and demand. Balancing the latter in the foreign exchange market leads to the establishment of an equilibrium level of the market exchange rate. This is the so-called “fundamental equilibrium”.

The size of the demand for foreign currency is determined by the country’s needs for the import of goods and services, the expenses of tourists in a given country traveling to foreign countries, the demand for foreign financial assets and demand for foreign currency in connection with the intentions of residents to carry out investment projects abroad.

The higher the foreign currency exchange rate, the less demand for it; The lower the rate of foreign currency, the greater the demand for it.

The size of the supply of foreign currency is determined by the demand of residents of a foreign state for the currency of a given state, the demand of foreign tourists for services in a given state, the demand of foreign investors for assets denominated in the national currency of a given state, and the demand for the national currency in connection with the intentions of non-residents to carry out investment projects in this state.

Thus, the higher the exchange rate of a foreign currency in relation to the domestic one, the smaller the number of national subjects of the foreign exchange market is ready to offer domestic currency in exchange for foreign currency and vice versa, the lower the rate of the national currency in relation to the foreign currency, the greater the number of subjects of the national market are ready to purchase foreign currency.

International financial organizations (IFOs) are created by pooling financial resources by participating countries to solve certain problems in the development of the world economy. These tasks could be:

operations on the international currency and stock markets with the aim of stabilizing and regulating the world economy, maintaining and stimulating international trade;

interstate loans - loans for implementation government projects and financing the budget deficit;

investment activities/lending in the field of international projects (projects affecting the interests of several countries participating in the project both directly and through resident commercial organizations)

investment activities/lending in the field of “domestic” projects (projects that directly affect the interests of one country or resident commercial organization), the implementation of which can have a beneficial impact on international Business(for example, infrastructure projects, projects in the field of information technology, development of transport and communication networks, etc.)

charitable activities (financing international aid programs) and funding basic scientific research.

Examples of international financial organizations include the International Monetary Fund, the World Bank, European Bank Reconstruction and Development, International Finance Corporation. All these organizations are actively involved in financing Russian projects.

To carry out their functions, MFOs use the entire range of modern technologies of financial and investment analysis and risk management, from fundamental research of a potential investment project (for which, most often, specialized teams or institutes of internationally qualified experts, international audit firms and investment banks) to operations on global stock markets(derivative securities markets).

The effectiveness of MFOs largely depends on interaction with governments and government organizations of participating countries. Thus, the investment activities of MFOs often involve close cooperation with state export credit agencies that provide insurance and risk management for large international projects.

International currency market If we formulate as precise a definition as possible, then the international currency market FOREX market(Foreign Exchange Market) is a set of transactions 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 specific date. If we formulate as precise a definition as possible, then the international currency market FOREX (Foreign Exchange Market) is a set of transactions 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 specific date.

Commercial market participants banks, commercial banks, currency exchanges, currency exchanges, central banks, central banks, companies engaged in foreign trade operations, investment funds,firms carrying out foreign trade operations, investment funds, brokerage companies; brokerage companies; Direct participation in foreign exchange transactions of private individuals is constantly growing. Direct participation in foreign currency transactions of private individuals is constantly growing.

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

Why is it necessary to move such huge money supply via electronic channels? Currency operations provide economic ties between participants in different 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 trips. Without currency exchange transactions, these most important types of economic activity could not exist. Currency transactions provide economic connections between participants in various markets located on opposite sides of state borders: interstate payments, payments between firms from different countries for goods and services supplied, foreign investments, international tourism and business trips. Without foreign exchange transactions, these essential economic activities could not exist. But money, which serves as an instrument here, itself becomes a commodity, since 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 money, which serves as an instrument here, itself becomes a commodity, since 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 system today is based on a regime of floating exchange rates: the price of a currency is determined primarily by the market. Therefore, the exchange rate either rises (the currency becomes more expensive) or falls down. This means that you can buy a currency cheaper and after some time sell it at a higher price, making a profit.

History of creation The international currency market as we know it arose after 1973, but its beginning modern history was founded 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 began to take care of 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 war production, the US economy emerged from the war on the rise. The international currency market as we know it arose after 1973, but the beginning of its most recent history began 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 began to take care of the post-war financial structure of the planet. While the economies of all leading countries after the war were to be in ruins or in the grip of war production, the US economy emerged from the war on the rise. And since both the victors, 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 it.

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

To prevent a post-war collapse of currencies, the financial forum at Bretton Woods created a number of financial institutions, including the International Monetary Fund (IMF), initially a pool of foreign exchange 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. For American dollar the gold content was fixed ($35 per troy ounce), and other currencies were pegged to the dollar in a certain ratio. 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 initially a joint foreign exchange resources to which all countries (but to the greatest extent the United States) contributed their share, and from which each country could borrow to support its currency. For the American dollar, the gold content was fixed ($35 per troy ounce), and other currencies were pegged to the dollar in a certain ratio (fixed exchange rates, exchange rates).

Exchange rate - The price of one national monetary unit, 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 quantities of demand and supply of mutually comparable currencies. Depends, as a rule, on the ratio of exports and imports between different countries, since it is the volumes Mutual export-import transactions determine the magnitude of demand and supply of mutually comparable currencies. Export - import of Russia in 2009 and in 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 region foreign economic activity.On the state of affairs in the field of foreign economic activity. Why is the ruble cheaper than the dollar? english pound more expensive than the euro? United currency unit USSR 1991

The strength of a particular country cannot be judged by the exchange rate ratio. It just happened that way historically. In 1997, Russia made a denomination (crossing out zeros) 1 k. If it had done this 1 k, then the dollar today would cost 2 rubles 30 kopecks. And if in the amount of 1:, then it would be 23 kopecks. The Central Bank calculated that 1:1000 is as convenient as possible. Otherwise, 10 kopecks would already be a fortune.

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

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