Theme: Contents and forms of International Economic Relations Xodjamqulov Shahboz. Mm-54i Questions: Introduction

National currency is the statutory means of payment of the country: the currency notes in the form of banknotes, bills and coins or other forms that circulate and are legal means of payment in the country, as well as payment documents and other securities (stocks, bonds, coupons for them, bills of credit (transfer note), loan notes, letters of credit, checks, bank orders, certificates of deposit, savings books and other financial and banking documents), denominatedin the currency of that country. The national currency is the basis of the national monetary system.
Foreign currency is the currency notes of foreign countries, credit and payment instruments, denominated in foreign currency units and used in international payments.
International (regional) currency is an international or regional monetary unit of account, means of payment and reserves.
In relation to the currency reserves of the country, there are distinguished the reserve currency. Under the reserve currency realize the foreign currency, in which the central banks of other countries accumulate and store reserves for international payments on foreign trade transaction and foreign investment.
The currency operation is the exchange of currency of one country for the currency of another country. Each national currency has adetermined price, which is denominated in currency units of the another country. This price is called the currency exchange rate. Prices of currencies are published daily. Prices for fully convertible currency are determined in the foreign exchange market and based on supply and demand for it, and in countries with a partially convertible currency, its price fixed by the central bank. Thus, the currency or exchange rate has a quantitative determinacy, which is the ratio of number of exchangeable currencies.
The place of currency relations in the world economic system is determined by the fact that they mediate the relationship of international trade, the international movement of factors of production, acting, on the one hand, upon these relations, on the other hand being under their influence. Speaking about the final causes of processes occurring in the currency sphere, they are determined by processes in the sphere of production, and are developed under the influence of changes in the ratio of economic forces between countries or groups of countries.
In market economy currency price fluctuates under the influence of supply and demand. If the exchange rate is too high, the currency supply exceeds demand, and price of the currency will decline. If the price is too low, demand will exceed supply, and the rate will increase. Due to these fluctuations it is composed the price equation of currency or the market price.The market price is the exchange rate at which the supply of currency in the foreign exchange market is equal to the demand for it.
As we understood, the currency relations are significant to buying or exchanging product in International Trade. And because of this, Curruncy relations is one of the main form of IER.

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