Mm66i Fayziyev Muhammad Xudoyberdiyev Mirjalol Financial Flows

MM66i Fayziyev Muhammad Xudoyberdiyev Mirjalol

Financial Flows

Financial flows are the cash flows that compensate for the processes of production, distribution, and usage of centralized and decentralized capital. The state, companies, organisations, institutions, and the population's financial flow consists of distributing over time receipts and payments of funds resulting from their operations. Financial flows are diverse in terms of structure, movement paths, intention and other features. The following forms of financial flows are usually differentiated by:

- fiscal flows of a fiscal nature, which are various financial flows associated with the formation of budget funds at various levels and their use;

- financial flows of the commercial sector - financial flows generated by various business entities;

- financial flows of non-profit sphere - financial flows of various organizations of non-profit sphere;

- financial flows of individuals. 

International financial flows take a variety of forms, one of the most important categories being that of foreign direct investment. This section also presents information on total financial flows into the United States, and on the reserve assets of monetary authorities for the world as a whole.

The definition of foreign direct investment (FDI) flows is provided under “FDI Flows and Stocks” in the Economic Globalisation section. Quarterly data are in billions of US dollars, and are expressed as an average of the last four quarters. Cross-border portfolio flows and positions for the United States are collected as part of the US Treasury International Capital (TIC) system; these data exclude all cross-border direct investment flows. Monthly data are in billions of US dollars, and expressed as averages of the previous 12 months. Reserve assets consist of those external assets that are readily available to, and controlled by, monetary authorities of individual countries for the financing of payments imbalances. These reserve assets comprise foreign exchange assets (currency and deposits, as well as securities), other claims, Special Drawing Rights and reserve position at the International Monetary Fund (IMF); they exclude central banks’ holdings of gold. Data are expressed in billions of US dollars.

Limits in the comparability of FDI data are discussed under “FDI Flows and Stocks” in the Economic Globalisation section. US Treasury International Capital (TIC) data cover most types of international financial flows, while excluding data on direct investment flows, which are collected by the US Department of Commerce’s Bureau of Economic Analysis. The TIC reporting system collects data on cross-border portfolio investment flows and positions between U.S. residents (including US-based branches of firms headquartered abroad) and foreign residents (including offshore branches of US firms).

For cash flow management features include the following:

- legislative function - carried out by the Oliy Majlis of the Republic of Uzbekistan;

- control (regulatory) function - performed by the Accounts Chamber of the Republic of Uzbekistan and other regulatory bodies (the Ministry of Finance of the Republic of Uzbekistan and its structures, the State Tax Committee of the Republic of Uzbekistan, the State Customs Committee of the Republic of Uzbekistan and others);

- management function - performed by employees of special departments and management of enterprises and corporations, tax and treasury bodies, the Ministry of Finance of the Republic of Uzbekistan;

- supervisory function - is carried out by special bodies in the process of managing the enterprise in a state of bankruptcy by decision of the arbitration court.

The main role in managing cash flows is assigned to ensure their balance by types, volumes, time intervals and other essential characteristics.  

The importance and importance of cash flow management at the enterprise can hardly be overestimated, since not only the stability of the enterprise in a specific period of time, but also the ability to further development and achieve financial success for the long term depends on its quality and effectiveness.

Therefore, financial flows are a quantitatively and qualitatively specified cash flow in the process of generating and using funds from financial resources. The quantity and efficacy of financial flows depends on the quality content and size of the emerging funds that decide the state's financial capacity, territorial and economic relations.

The bigger the economic power of the region, the greater the amount of financial flows. The balance of financial flows characterizes the financial position of the territories and business units, both state and entity. Net cash flow is one of the most critical assets of an enterprise's (corporation's) financial capacity.