In a market economy, the functioning of which is based on commodity-money relations, money plays an exceptional role. They are often called the language of the market, since with their help the circulation of goods and resources is carried out. Therefore, the market is impossible without money, without monetary circulation.

Money circulation is the continuous movement of money, its functioning as a medium of exchange or means of payment. It services the sale of goods, as well as the movement of loan (in the form of money capital) and fictitious (in the form of securities) capital.

The monetary system is a historically established and legally established form of organizing monetary circulation in the state. Its formation and functioning is facilitated by the banking system. The national monetary system is an integral attribute of the economy of any civilized state.

BASIC ELEMENTS OF THE MONETARY SYSTEM

The legislation of each country determines the structure monetary system, which includes the following elements:
- Name monetary unit and its parts;
- price scale;
- types of banknotes that have legal tender force;
- structure money supply;
- emission mechanism;
- types and procedure for securing banknotes;
- structure of money turnover, regulation of non-cash money turnover and cash circulation;
- procedure for establishing exchange rate;
- a state body that regulates money circulation.

Monetary unit - set in legislative order a monetary sign that serves to measure and express the prices of all goods and services. The name of the national monetary unit, as a rule, arises historically, but the state must secure it by its legislative act. Monetary units are, for example, in the USA - the dollar, in Japan - the yen, in a number of European countries - the euro, in China - the yuan, in Russia - the ruble, etc.

The price scale is a means of expressing value in monetary units, based on the weight of the monetary (precious) metal in the monetary unit. Now the scale of prices is influenced by supply and demand.

Types of money are the denominations of banknotes and coins that are in circulation and are legal tender. First of all, these are credit money (banknotes), small change, as well as paper money (treasury notes).

The structure of the money supply is considered either as the ratio between the cash and non-cash money supply, or as the banknote structure of the mass of banknotes.

The emission mechanism includes the procedure for issuing and withdrawing money from circulation, money issue and provision of banknotes issued for circulation. The central bank issues banknotes in three ways:
- providing loans to credit institutions in the form of rediscounting commercial bills;
- lending to the treasury secured by government securities;
- issuing banknotes by exchanging them for foreign currency.

Banks provide security for banknotes issued for circulation at the expense of the following funds in their assets: inventory, precious metals, freely convertible currency, securities and other liabilities.

The structure of money circulation as an element of the monetary system can be considered, first of all, as the ratio of cash circulation and non-cash money circulation. The state legislatively determines the procedure for cash and non-cash money circulation.

The exchange rate is determined based on the quotation. Quotation – determination and establishment of the exchange rate of a foreign currency to the national one. It allows you to determine the ratio of two monetary units offered for exchange. This ratio cannot be constant, since supply and demand are constantly changing in the foreign exchange market. Quotations are carried out by central (national) banks and the largest commercial banks.

The state apparatus that regulates monetary circulation means the state body that is legally entrusted with monitoring and regulating the processes of issuing, securing, storing and withdrawing banknotes from circulation.

TYPE OF MONETARY SYSTEM

The type of monetary system depends on the form of functioning of money - full-fledged money or signs of value. In the process of evolution of forms of money and monetary relations, two types of monetary systems were formed:
- metal handling systems;
- currency circulation systems.
Metallic monetary circulation systems, in turn, are divided into bimetallic and monometallic systems.

Bimetallism is a monetary system in which the role of universal equivalent is assigned to two precious metals valuable metals- gold and silver. This system is characterized by the free minting of coins from both metals and their unlimited circulation. The ratio between gold and silver coins is established depending on market price precious metals. This system existed in the XIV-XVII centuries. There are three known varieties of it:
- system parallel currency- the ratio between gold and silver coins was established spontaneously;
- a dual currency system - the state fixed the ratio between metals, and the minting of gold and silver coins and their acceptance by the population were carried out according to this ratio;
- lame currency system - gold and silver coins were legal tender, but not equal conditions. Silver served as a substitute for gold coins in circulation, and was also used as a small change.

However, the bimetallic monetary system did not meet the needs of a developed capitalist economy, since the use of two metals - gold and silver - as a measure of value at the same time, contradicts the nature of this function of money. Only one commodity can serve as a universal measure of value. In addition, the fixed cost ratio between gold and silver established by the state did not correspond to their market value. As a result of the reduction in the cost of silver production in the late 19th century and its depreciation, gold coins began to fade from circulation into treasure.

The development of capitalism required stable money, a single universal equivalent, so bimetallism gives way to monometallism. Monometallism is a monetary system in which one monetary metal is the universal equivalent and the basis of monetary circulation. Along with metal money, there are other signs of value in circulation (banknotes, treasury notes, small change coins) exchangeable for monetary metal. History knows silver and gold monometallism.

Silver monometallism existed in Russia in 1843 - 1852, in India in 1852 - 1893, in Holland in 1847 - 1875. In Tsarist Russia, the system of silver monometallism was introduced as a result monetary reform 1839 - 1843. The monetary unit became the silver ruble containing 4 spools and 21 shares of pure silver. Credit notes were also put into circulation, circulating on a par with silver coins and freely exchangeable for silver. However, this reform in the conditions of decaying serfdom with a shortage state budget and the foreign trade balance could not significantly streamline monetary circulation for a long period.

The introduction of the gold monometallism system is due to the formation and development of a single world market, since the strengthening foreign economic relations demanded stability from the national currencies serving them. One of the direct prerequisites for states to implement the gold standard was the accumulation of gold reserves. Gold monometallism, or the gold standard, existed in the form of gold coin, gold bullion and gold exchange standards.

Under the gold coin standard, gold performs all the functions of money; both gold coins and gold tokens are in circulation; free minting of gold coins with a fixed gold content is carried out; gold coins are freely exchanged for gold tokens at face value. With the outbreak of World War I, the gold coin standard ceased to exist in most countries.

Under the gold bullion standard, banknotes were exchanged only for gold bullion (not for gold coins), and with certain restrictions. Namely, standard gold bars weighing about 12 kg were sold, so only relatively wealthy fund holders could purchase them. This prevented the dispersion of gold reserves among small owners. Thus, gold was gradually forced out into wholesale circulation.

A feature of the gold exchange standard was that banknotes are exchanged for mottos, i.e. for foreign currency exchangeable for gold. The important role of the gold exchange standard was that it consolidated the currency dependence of some countries on others, which was the basis for the subsequent creation of a system of international currency agreements and systems currency regulation, ensuring the relative stability of freely convertible currencies.

Gold bullion and gold exchange standards were formalized by interstate agreements reached at the international economic conference in Genoa in 1922. This conference determined the status of the reserve currency (reserve motto). The pound sterling and the dollar were recognized as reserve currencies during this period.

As a result of the global economic crisis 1929-1933 the gold standard was abolished in all countries. There was a refusal in domestic markets from all forms of payments in gold, and the relationship between the volume of gold reserves of banks and the size of money emission was lost. After the collapse of the British Empire, the role of reserve currency was assigned to the dollar.

In 1944, the charter of the International Monetary Fund was approved and a fixed price for gold was established - $35 per troy ounce (31.1 grams). Thus, the gold dollar standard was established.

Due to the decline in gold reserves, the US government officially stopped selling gold bullion in dollars in 1971, and the gold dollar standard ceased to exist. The last stage of the break between monetary systems and gold was the abolition of fixed gold parities of currencies and the transition to floating exchange rates. The Jamaican International Conference, whose agreements were introduced in 1976 -1978, legally enshrined the demonetization of gold, which was expressed in the following:
- the official (fixed) price of gold was cancelled;
- the gold content of countries' currencies was abolished; - gold is excluded from settlements between the International Monetary Fund and its members.

Since the 30s of the twentieth century, a system of circulation of nominal banknotes has been formed in Western countries, in which the monetary commodity operates not in coin form, but in the form of paper money circulation and purely banknote circulation. In modern monetary systems, banknotes retain their credit nature, but are subject to the laws of paper money circulation.

Monetary systems based on the circulation of irredeemable paper money currently exist in the vast majority of countries. The obvious advantages of such systems, associated primarily with the convenience and economy of circulating money, contributed to their widespread distribution.

The main features of the monetary system characteristic of market economy, are:
- decentralization of money circulation between different banks;
- division of the function of issuing non-cash and cash banknotes between different units banking system. The issuance of cash is carried out by central banks, the issue non-cash money- commercial banks with different forms of ownership;
- creation and development of a mechanism of state monetary regulation, which is of an economic nature;
- centralized management of the monetary system through the apparatus of the central bank.

Features of the functioning of paper-credit monetary systems

Banknotes in paper-credit (fiduciary) monetary systems are not representatives of public material wealth. Such monetary systems were formed as a result of the demonetization of gold. There are three types of fiduciary monetary systems:
- transitional (combine metal and paper circulation);
- full fiduciary standard;
- electronic and paper monetary systems.

Currently, most countries are transitioning to electronic-paper monetary systems. The characteristic features of such systems are as follows:
- issuing money in the form of bank lending to economic entities and for the increase in official gold and foreign exchange reserves;
- development of non-cash money turnover and reduction of cash;
- monopolization of the issue of cash by the state represented by the issuing bank;
- the prevailing development in the system of non-cash money circulation of electronic money payments;
- based on “network money” (software-based / network-based systems) - the monetary value is stored in computer memory, and using a special software its transfer is carried out via electronic communication networks (electronic payment systems of issuing banks, payments on the Internet);
- increasing role government regulation monetary circulation.

Features of the modern Russian monetary system

The Russian monetary system is in constant development, reflecting modern economic and political realities. Its peculiarity is the strict centralism of the management of this system. The main elements of the Russian monetary system:
1. The national monetary unit is the ruble and its component is the kopeck (1 ruble = 100 kopecks).
2. Types of money in circulation - bank notes (banknotes) and small change (this structure has developed since 1991, when treasury notes were withdrawn from circulation).
3. The national emission system of Russia is the monopoly right of the Bank of Russia to issue money into circulation, currently enshrined in the Federal Law Russian Federation“On the Central Bank of the Russian Federation (Bank of Russia).” The Bank of Russia banknotes issued into circulation are secured by a set of obligations to the Bank itself.
4. The national apparatus that supports and regulates money circulation is the monopoly of the Central Bank on all issues related to the issue of money and the organization of its circulation on the territory of Russia.

The monetary system and monetary circulation operate in accordance with the law on the Central Bank of April 12, 1995, which determined them legal basis. The monetary unit of the Russian Federation (currency) is the ruble. The law prohibits the introduction of other units of money, and also does not require a ratio between rubles and gold. The exchange rate of the ruble against the currencies of developed countries is set by the Central Bank of the Russian Federation and is officially published. This is necessary to maintain normal conditions for economic activity countries. The types of money that are valid in the Russian Federation are banknotes and metal coins. They are secured by the assets of the Central Bank, which include gold reserves, securities, and reserves of credit institutions. In the Russian Federation, cash (both coins and banknotes) and non-cash money (funds in the accounts of credit institutions) are in circulation. Since the ruble is not linked to gold, there is no fixed price scale in the Russian Federation. The state officially sets the ruble price scale. To regulate the economy through monetary policy, the Central Bank uses the following tools: discount policy (discount interest rate), reserve norms of credit institutions, operations open market, regulation of standards for credit institutions, etc. The Central Bank approves samples of banknotes. The issue of new money occurs on the basis of an emission permit, which is issued by the Board of the Central Bank within the amount established by the Government of the Russian Federation. The release of new money is reported in the media.

The modern monetary system of Russia, like most other countries, is based on money that is not redeemable for gold. The main provisions of the monetary system of the Russian Federation are defined in the Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)” (as amended on January 10, 2003).

1.Name of the monetary unit.

According to Law No. 86-FZ of July 10, 2002, the official monetary unit (national currency) of the Russian Federation is the ruble, which is equal to 100 kopecks. In Russia, in the period from 1922 to 1947, there were two names of the monetary unit: “ruble” and “chervonets”. After [the Monetary Reform of 1947, the Monetary Reform of 1947], and up to the present time in Russia, a single name for the monetary unit “ruble” has been preserved, which was enshrined in the Law “On the Monetary System of the Russian Federation” adopted by the country’s parliament and in the subsequent Law “On Central Bank of the Russian Federation".

The law prohibits the issuance of other monetary units and monetary surrogates, and emphasizes the responsibility of persons who violate the unity of monetary circulation. The official ratio between the ruble and gold or other valuable metals is not established. The exclusive right to issue cash, organize circulation and withdraw it from circulation on the territory of the Russian Federation belongs to the Central Bank of the Russian Federation.

Types of money that have legal tender force are bank notes ( banknotes) and a metal coin, samples of which are approved by the Bank of Russia. Banknotes and metal coins are unconditional obligations of the Central Bank and are backed by its assets. They are required to be accepted at their face value throughout the Russian Federation for all types of payments, as well as for crediting to accounts, deposits, and transfers.

The law divided the powers of the Government of the Russian Federation and the Central Bank of the Russian Federation in the field of production of banknotes. The Central Bank of the Russian Federation is responsible only for planning the volume of their production.

In order to organize cash circulation, it is assigned the following functions:

forecasting and organizing the production of banknotes and metal coins;

Creation reserve funds banknotes and coins;

determination of rules for storage, transportation and collection of cash;

establishing signs of payment of banknotes and the procedure for replacing and destroying banknotes;

approval of rules of conduct cash transactions for credit institutions.

In 2002, the Bank of Russia introduced the Regulation “On the procedure for conducting cash transactions in credit institutions on the territory of the Russian Federation” dated October 9, 2002 No. 119-P (as amended on June 1, 2004).

The procedure for securing banknotes.

State legislation (federal laws “On the Central Bank of the Russian Federation”, “On Banks and Banking Activities”) establishes what can serve as security for banknotes (inventory, gold and precious metals, freely convertible currency, securities, insurance policies, guarantees of the Government of the Russian Federation for banks and other organizations, etc.). The use of other types of collateral or violation of the basic rules of collateral should not be allowed.

Emission mechanism represents the procedure for releasing money into circulation and withdrawing it from circulation. Non-cash money is issued by commercial banks in the process of making credit operations. When loans are repaid, money is withdrawn from circulation. Cash issuance is carried out by the cash settlement centers of the Central Bank of the Russian Federation. Cash withdrawal occurs when cash is deposited commercial banks to cash settlement centers.

Structure of money supply in circulation is considered in two ways. This is either the ratio between the cash and non-cash money supply, or the ratio between banknotes of different denominations in the entire volume of the money supply.

The procedure for forecast planning of cash flow

Includes a system of forecast cash flow plans; the bodies drawing up these plans; a set of indicators determined using these plans; tasks solved using each plan.

Monetary regulation mechanism is a set of monetary regulation tools (methods); rights and responsibilities of bodies carrying out monetary regulation; tasks and objects of monetary regulation.

2. The procedure for securing banknotes operates in countries in accordance with established law.

3. Emission mechanism - a legally established procedure for issuing banknotes into circulation. Issue operations (for the issue and withdrawal of money from circulation) are carried out by the Central Bank of the Russian Federation, which enjoys the monopoly right to issue banknotes, which make up the overwhelming majority of cash. Operates on the basis of federal laws “On Central Bank RF (Bank of Russia)" dated April 26, 1995 and "About banks and banking» dated 02/03/96 with subsequent amendments and additions.

4. The structure of the money supply in circulation is the ratio of cash and non-cash money, as well as the ratio of banknotes of different denominations in the total money turnover. Banknotes in denominations - 10, 50, 100, 500, 1000 and 5000 rubles, coins - 1, 5, 10, 50 kopecks.

5. The procedure for establishing the exchange rate or quotation of currencies, i.e. ratio of the country's currency to foreign currencies. Implemented Central Bank RF.

Topic 3. Evolution of monetary systems and state monetary policy.

1. The reason for the abolition of the gold standard in all countries since the late 70s (after the IMF Conference in Jamaica) is the unleashing of uncontrollable inflationary processes under the gold standard.

2. It is known that gold bars were replaced by coins. I think that issuing gold coins is more profitable than selling bullion, because... They are much easier to sell, because they weigh less and therefore can be purchased by more people.

3. If money for transactions makes an average of 5 turnovers per year, then the amount of money needed to service the exchange for which there is a demand is 5 times the nominal volume of GNP.

Topic 4. Finance: general concept and basic functions. Financial policy.

1. What functions of money are based on following functions finance – distribution and control?

The distribution function of finance is based on the following functions of money - as a measure of value, as a means of accumulation and savings, and world money.

Control - as a means of circulation, as a means of payment.

2. In what way (separately or in conjunction) do distribution and control functions finance?

These functions operate in conjunction with each other, for example, the control function manifests itself before the onset of the distribution process, when programs, forecasts, and budgets are drawn up. The control function is manifested in the process of using funds of funds, in the implementation of planned programs, plans, estimates, and the distribution function - in the formation of these funds.

3. Does the rapid development of commercial banking in the Russian Federation lead to a change in the function of finance?

In these conditions, the functions of finance will be even more important. For example, the control function plays an important role in credit and banking control, when using the principles of lending and monetary settlements. Positive impact on financial sector The development of commercial banks means that the more banks there are, the greater the competition, which means that the population will be offered many profitable investment systems, which in turn will lead to an increase in investment in the country. However negative point is also present, the fact is that then it will be necessary to strengthen, tighten and expand control over these banks in the field of monetary circulation.

Topic 5. Financial system: a combination of paid and gratuitous cash flows and formation of finance economic entities.

1. What are the features of control exercised by financial authorities and tax inspectorates?

Such control is part of the financial activities of the state and such activities are special due to the fact that they are carried out on behalf of the state represented by the relevant bodies (Ministry of Finance of the Russian Federation, Federal Treasury, Accounts Chamber, Federal tax service, Bank of Russia, etc.).

In addition, such control is important because it is carried out for cash funds states at different levels: at the federal, regional and local levels.

It is carried out in the implementation of planned programs, plans and estimates, namely the budget of the Russian Federation, budgets of the constituent entities of the Russian Federation, budgets municipalities and estimates of budgetary enterprises, institutions, organizations.

Since the largest portion of budget revenues at any level are tax revenues, the role of control carried out by tax inspectorates is obvious. How productively this control will be carried out, how much the revenue part of the budget will be executed, and subsequently how much will all expenditure parts of the budget be financed. All this ultimately affects the standard of living of the population in the country, economic development countries, etc.

2. What are the features of the audit form of financial control? Which organs carry it out?

Audit control is carried out in accordance with federal law dated August 7, 2001 No. 119-FZ “On audit debt”, according to which audit is a business activity in independent verification accounting and financial (accounting) statements of organizations and individual entrepreneurs.

The purpose of the audit is to express an opinion on the reliability of the financial (accounting) statements of the audited entities and the compliance of the accounting procedure with the legislation of the Russian Federation. Reliability is understood as the degree of accuracy of financial (accounting) reporting data, which allows the user of this reporting, based on its data, to draw correct conclusions about the results economic activity, financial and property status of the audited entities and make informed decisions based on these findings.

Audit activities are carried out along with financial control carried out in accordance with the legislation of the Russian Federation specially authorized to do so government agency. Auditors who have passed certification and wish to work independently, as well as audit firms, begin their activities after state registration as a subject entrepreneurial activity, obtaining a license and inclusion in State Register auditors and audit firms.

In accordance with the Decree of the Government of the Russian Federation of March 29, 2002 No. 190 “On licensing of auditing activities”, it is carried out by the Ministry of Finance of the Russian Federation (licensing authority). The license is issued for a period of five years subject to compliance with the following requirements: established requirements:

Availability of an auditor qualification certificate,

Carrying out business activities only in the form of an audit and the provision of audit-related services,

Ensuring the safety of information constituting an audit secret, and other conditions.

In order to ensure that licensees comply with the above licensing requirements, the Ministry of Finance of the Russian Federation inspects their activities. The period of this inspection should not exceed 45 days. The licensing authority does not have the right to conduct more than one inspection of an audit organization (individual auditor) during one calendar year on the same issues, except for cases when the audit is carried out in connection with requests and complaints from clients of audit services and (or) law enforcement agencies. If a licensee detects violations of licensing requirements and conditions, the licensing authority is obliged to send the licensee a warning within one month after the end of the inspection indicating the violations identified and the time frame for elimination.

The audit is divided into: mandatory and proactive.

A mandatory audit is carried out in cases expressly established legislative acts RF (Article 7 of the Law on Auditing), initiative - by decision of the business entity.

Statutory audit is an annual mandatory audit of the accounting and financial (accounting) statements of an organization or individual entrepreneur.

Mandatory audit is carried out in cases where:

1. the organization has the legal form of an open joint stock company;

2. the organization is a credit organization, insurance organization or mutual insurance company, commercial or stock exchange, investment fund, state extra-budgetary fund, a fund whose source of funds is voluntary contributions from individuals and legal entities;

3. the volume of revenue of an organization or individual entrepreneur from the sale of products (performance of work, provision of services) for one year is 500 thousand times higher than established by law minimum size wages or the amount of balance sheet assets is 200 thousand times higher than the specified standard at the end of the reporting year;

4. the organization is government unitary enterprise, a municipal unitary enterprise based on the right of economic management, if its indicators comply with the standards specified earlier;

5. mandatory audit in relation to these organizations or individual entrepreneurs is provided for by the relevant federal law.

Date audit is determined by agreement with the auditor, but, as a rule, is no more than 2 months.

The audit ends with the preparation of an official document - auditor's report, compiled in accordance with federal rules(standards) of auditing activities and containing an opinion audit firm(auditor) on the reliability of the financial (accounting) statements of the audited entity and the compliance of the procedure for maintaining its accounting records with the legislation of the Russian Federation.

The quality of the audit report can be checked by the body that issued the license to carry out auditing activities, at the request of an economic entity, on its own initiative or at the proposal of the prosecutor. If unqualified conduct of an audit is detected, leading to losses for the state or for an economic entity, they can be recovered from the auditor (audit firm) based on a court decision or arbitration court at the request of the authority that issued the license.

Drawing up a knowingly false audit report entails liability in the form of cancellation of the license to carry out auditing activities, and for the person who signed such a report, also the cancellation of the auditor’s qualification certificate and his involvement in criminal liability in accordance with the legislation of the Russian Federation.

The procedure for cash discipline on the farm.

The procedure for establishing the monetary exchange rate;

Monetary regulation mechanism;

Forecast planning procedure;

Structure of money supply in circulation;

1.Currency- a monetary sign established by law, which serves to measure and express the prices of all goods. A monetary unit is usually divided into small multiples. Most countries use a decimal division system.

3. Emission mechanism - the legally established procedure for issuing banknotes into circulation. Issuing operations (for issuing and withdrawing money from circulation) in states are carried out by:

1) – a central (issuing) bank that enjoys a monopoly right to issue banknotes, which make up the overwhelming majority of cash;

2) – treasury (state executive agency), issuing small denomination paper notes (treasury bills and coins made from cheap types of metal, which are subject to developed countries accounts for about 10% of the total issue of cash).

In industrialized countries, as a rule, government paper money (treasury bills) are not issued, with the exception of the United States - treasury bills of $100 are in use there, and in a number developing countries paper money has a fairly wide circulation.

The issue of Central Bank banknotes is carried out in three ways:

Providing loans to commercial institutions;

Lending to the state secured by government securities;

Issue of banknotes by exchanging them for foreign currency.

4. Structure of money supply in circulation– represents the ratio of cash and non-cash money, as well as the ratio of banknotes of different denominations in the total money turnover.

5. Forecast planning procedure – includes a system of cash flow plans, the bodies that draw up these plans, and the tasks solved by the plans.

6. Monetary regulation mechanism is a set of instruments for the state’s influence on the economy as a whole.

7. Procedure for establishing the exchange rate– or currency quotes, i.e. the ratio of the country's monetary unit to foreign currencies.

8. The procedure for cash discipline on the farm - reflects a set of rules, forms, cash and reporting documents that guide legal entities and the population when organizing cash flow.

Modern monetary systems market type are built on the following principles:

1. The principle of centralized management of the monetary system.

2. The principle of forecast planning of cash flow.

3. The principle of stability and elasticity of money turnover.

4. The principle of the credit nature of money emission.

5. The principle of security of banknotes issued for circulation.

6. The principle of non-subordination of the Central Bank to the government and its accountability to the country’s parliament.

7. The principle of providing the government with funds only by way of lending.

8. The principle of integrated use of monetary regulation instruments.

9. The principle of supervision and control money turnover.

10. The principle of operation is exclusively national currency on the territory of the country.

Procedure for securing banknotes

The procedure for securing banknotes is established by state legislation. Banknotes can be backed by inventory items, gold and precious metals, a freely convertible currency, securities, insurance policies, guarantees from governments, banks and other institutions.

Emission system

It represents the order of money issue and withdrawal, that is, the order of printing money, putting it into circulation and withdrawing it. The Ukrainian monetary system is based on the principle of unity, interaction and mutual interchange of cash and non-cash circulation in its functioning social production, achieving its effectiveness, stability of the monetary unit. The state ensures interaction and regulation of cash and non-cash circulation on the basis of acts of internal legislation, taking into account economic situation countries.

The issuance of non-cash money is carried out by commercial banks in the process of performing credit operations. When loans are repaid, money is withdrawn from circulation.

The issuance of cash into circulation is carried out through the NBU cash settlement centers. Withdrawal of money occurs when cash is received from commercial banks at the NBU cash settlement centers.

The NBU coordinates with government agencies the amount of money supply. The NBU issues banknotes in three ways:

Providing loans to credit institutions in the form of rediscounting commercial bills;

Lending to the state treasury secured by government securities;

Issue of banknotes by exchanging them for foreign currency.

Establishing the exchange rate of the national currency and the procedure for exchanging it for foreign currency

The need to establish the exchange rate is due to the peculiarities of money performing the function of world money. Ukrainian hryvnia is a legal means of purchase and payment only on the territory of Ukraine. Outside of Ukraine, it must be exchanged for the currency that is legal for the other country.

Establishing an exchange rate, or quoting currencies, means expressing the currency of a given country in the currencies of other countries, that is, it manifests itself during their exchange. Essentially the exchange rate is is the price of one country's currency expressed in another country's currency.

Previously, the procedure for establishing the exchange rate was based on the gold content of various currencies. Nowadays, since the gold content of the monetary unit is not fixed in one country, a quotation method is used, which is based on taking into account fluctuations purchasing power national currencies, the relationship between supply and demand of a particular currency for foreign exchange markets and other factors.

Availability of state institutions that regulate money circulation in the country

The normal functioning of the national monetary system is impossible without the state establishment and regulation of the procedure for cash and non-cash money circulation. Each state assigns the task of establishing and regulating monetary circulation to special bodies. Regulation of monetary circulation and compliance with legislation on monetary issues in Ukraine is carried out by National Bank Ukraine. This is provided for by the Constitution and the Law “On the National Bank of Ukraine”. The NBU acts as the central element of the monetary system and the state body for implementing monetary and foreign exchange regulation.

The basis of the NBU's activities is control of monetary circulation; ensuring the stability of the national currency - the hryvnia; regulation of the issue of cash, stimulation of the development and strengthening of the banking system of Ukraine, improvement of the rules for making non-cash payments, and the like. NBU is developing monetary policy in Ukraine and exercises daily control over its implementation.

Other organs government controlled economy - the Cabinet of Ministers, the Ministry of Economy, the Ministry of Finance - also influence monetary circulation, implementing their measures of economic and financial policy. However, the regulatory actions of these government economic management bodies in the monetary sphere must be coordinated with the NBU.

Principles of organizing the monetary system

The basis of the monetary system is the principles of its organization. These are the rules according to which the state organizes the functioning of monetary system. On the basis of what principles is the modern market-type monetary system of Ukraine built?

1. The principle of centralized management of the monetary system.

In a market-type monetary system, economic methods management. The state, through the National Bank of Ukraine, creates conditions in the market that force banks, financial institutions and other legal entities in the field of monetary circulation to make decisions that are beneficial to ensure the effective functioning of the national economy.

2. The principle of stability and elasticity of monetary circulation. The essence of this principle is that the functioning of the monetary system should be organized in such a way as to, on the one hand, prevent inflation, and on the other, to be able to expand money circulation if the economy’s needs for funds increase, and reduce it when these needs decrease.

3. The principle of the credit nature of money emission. The emergence of new banknotes (cash or non-cash) in economic circulation is possible only on the basis of credit operations carried out by banks.

4. The principle of security of banknotes issued for circulation. Banknotes are backed by inventories, gold, other precious metals that constitute bank assets, securities and other long-term liabilities.

5. The principle of non-orderliness of the National Bank of Ukraine of the Government. In order to maintain the stability of monetary circulation and fight inflation, which are the priority tasks of the NBU, a threat could arise due to the fact that, under certain circumstances, the Government will begin to use NBU funds to solve its problems.

6. The principle of providing the Government with funds only by way of lending. The NBU should not finance the government. Cash He can provide it only by way of lending against certain collateral.

7. The principle of supervision and control over money circulation from the state. The purpose of this is to ensure constant control over money circulation, compliance by all subjects of monetary relations with the basic principles of organizing cash and non-cash circulation. The state exercises this supervision and control through the banking, financial, and tax systems.

8. The principle of functioning exclusively national currency on the territory of Ukraine. Payments for goods and services and other payments within the country must be made, according to the legislation of Ukraine, exclusively in national currency. On the territory of Ukraine, the national currency can be exchanged for the currencies of other countries, but used for payments abroad or invested in bank deposits.