Contents Introduction Chapter I. Theoretical foundations of currency regulation

The object of research is to examine the mechanism of currency regulation operations based on foreign experience.
Purpose of the study is to investigate deeply foreign experience in the field of currency operations regulation and put into practice in our country’s monetar field in order to flourish economy as well as encourage investment sector.
The following tasks are to be carried out:

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  outlined the concept of essence and reveal the tasks of currency regulation;
  
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  showed the economic and administrative instruments of currency regulation;
  
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  explored innovative and modern way of currency operations regulation relying on foreign experience;
  
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  explored the modern classification of exchange rate regimes and determined the value of its impact on the competitiveness and economic freedom of Uzbekistan;
  

Literature review: In the economic theory of the problem of regulating the exchange rate and its influence on economic processes are reflected in the works of economists. In the post-war period, these issues were studied: R. Nurkse¹ and M. Friedman², who outlined the identified problem for the first time and developed recommendations regarding the exchange rate regime. The following also worked on this problem: V. Bazilevich³, J. Williams⁴, P. Krugman⁵, A. Kholopov⁶ and others.
The structure of the course paper consists of introduction, three chapters, conclusion and references.


Chapter I. Theoretical foundations of currency regulation.
1.1 Currency operations: concept, objects, subjects
Currency operations - a transaction of sale or purchase of foreign currency, use it as a means of payment, payment of foreign obligations of the national currency, removal, forwarding, currency values ​​abroad and import from abroad. In currency dealings release operation, which are held by non-residents and residents.
Currency transactions occur:

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  when converting natural or legal persons of funds from one currency to another;
  
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  when they are used in international circulation of currency values ​​as a means of payment;
  
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  the importation, delivery, carried into the territory of this country and currency values ​​beyond its borders.
  

It is worth mentioning that it is usually attributed transaction that does not involve relations to other goods and directly affects only the money itself. for example, the acquisition of the bus is definitely a financial transaction, but it can’t be called a currency transaction, because the product was purchased at the end of this monetary transaction. It can be attributed to currency transaction.
Currency transactions are subject to state and banking supervision and control. In countries with partially convertible currencies and restrictions on financial transactions, the size of the currency position of banks relative to national currency is one of the objects of currency control.
Banks operate in the foreign exchange market through foreign exchange transactions. Currency refers to banknotes of foreign countries, as well as credit and payment documents expressed in foreign currency units and used in international settlements. Foreign currency is funds in foreign currency units and international units of account held in accounts and deposits.
The presence of the national currency ensures the normal circulation of goods, makes it easier for the government to effect settlements with all citizens who work in state institutions, serve to maintain the army.
Let us consider in more detail the composition of currency values. The first element is foreign currency. The structure of foreign currency includes the following elements:

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  banknotes in the form of banknotes, treasury notes, coins that are in circulation and are legal means of cash payment on the territory of the respective foreign state (group of foreign states), as well as the said banknotes withdrawn or withdrawn from circulation;
  
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  funds in bank accounts and bank deposits in monetary units of foreign countries and international monetary or settlement units.
  

The second element of the concept of currency values ​​is external securities - including in non-documentary form, which are not related to domestic securities. Currency regulation is directed primarily at the organization for international settlements, the determination of the order of operations with foreign currency and other currency values and is thus a form of state influence on foreign trade. The presence of currency regulation and control the state is not just world practice, and the objective economic necessity.
The goal of currency regulation is to support economic stability and the formation of a strong basis for the development of international economic relations through its impact on the exchange rate and on the operation of the currency exchange. The policy of currency regulation is implemented through the mechanism of currency limitations and currency control.
Currency restrictions for usually provide for certain measures for regulation of foreign exchange operations of residents and non-residents of the country, for effective application which uses a system of currency control.
The main objectives of currency regulation and control are:

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  organization of the system of exchange rate, protection and providing the necessary degree of convertibility of the national currency;
  
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  controlling the payment function of foreign currency, regulation of the current operations of the balance of payments;
  
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  organization of the internal currency market;
  
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  regulation and banking currency values;
  
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  protection of foreign investments, regulation of processes of formation and movement of capital;
  
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  setting mode and restrictions export import across the border of currency values;
  
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  provide a stable source of foreign currency for the national foreign exchange market.
  

2.