1. Characteristics of the discount policy

Discountnpolitics -This state regulation of the interest charged by banks when issuing loans and discounting bills.

Discountnpolitics -This policy of raising or lowering discount rates pursued by central issuers banks in order to influence loan capital, the state of the balance of payments and exchange rates

Discountnpolitics -This one of the forms of monetary policy of central banks, aimed at regulating the economy by influencing the volume loan in the country, inflation rates, as well as the state of the balance of payments and exchange rate. This is done by raising or lowering the official discount rate. By raising the discount rate, the Central Bank helps reduce the demand for credit), and by lowering it, it activates demand.

Discount policy is

Characteristics doriginallyOuchpoliticianAnd

discount policy is characterized by an increase or decrease in the discount rate of the central emission jar in order to influence the movement of foreign short-term capital. By raising the discount rate during periods of deterioration balance of payments, centralbank stimulates the tide capital from countries where the discount rate is lower. This helps improve the condition balance of payments. For example, in the first half of the 80s of the last century, the US administration pursued a policy of high interest rates and the dollar exchange rate. This stimulated (along with other factors) country from Western Europe and Japan. From 1980 to 1984, their size amounted to more than 500 billion US dollars. As a result, the rate dollar increased, and exchange rate of investor countries, under the influence of this factor, decreased.

Of course, this method of solving domestic problems can only be effective if the movement of capital between countries due to their more profitable placement. Consequently, increasing the discount rate is not always an effective method of increasing and preserving capital in the country.

And revaluation is traditionally used for currency regulation. Their essence boils down to a decrease or increase in the exchange rate of the national currency due to inflation, imbalance in the balance of payments, and the gap between the purchasing power of comparable currency units. Before the abolition of the fixed gold content in currencies devaluation was accompanied by a decrease in the weight of the metal in the monetary unit, and revaluation was accompanied by its increase.

In modern conditions devaluation and revaluation are not means of stabilizing exchange rates. They are just a way to bring the official exchange rate into temporary correspondence with the actual one that has developed on the Forex currency market. For example, within Western Europe Over the past twenty years, multiple devaluations (of the French franc, Italian lira) and revaluations (of the German mark, the Dutch guilder, etc.) have been officially carried out. With floating exchange rates, revaluation usually occurs spontaneously. However, devaluation is often carried out deliberately: by reducing the official exchange rate national currency, seek to stimulate exports and curb imports.

Sources

finance.sci-lib.com Financial Dictionary

dic.academic.ru Dictionaries and encyclopedias on Academician

bank24.ru Dictionary of economic terms

profibank.ru money And loan

Investor Encyclopedia. 2013 .

See what “Discount Policy” is in other dictionaries:

DISCOUNT POLICY- state regulation of the interest charged by banks when issuing loans and discounting bills. Dictionary of financial terms. Discount policy Discount policy is the monetary policy pursued by central banks, which consists of ... ... Financial Dictionary

DISCOUNT POLICY- a policy of increasing or decreasing discount rates pursued by central banks of issue in order to influence the demand and supply of loan capital, the balance of payments and exchange rates... Big Encyclopedic Dictionary

Discount policy- a policy of increasing or decreasing discount rates pursued by central banks of issue in order to influence the demand and supply of loan capital, the balance of payments and exchange rates. Political science: Dictionary reference book.... ... Political science. Dictionary.

Discount policy- (English discount politics) a policy of raising or lowering discount rates conducted by central banks of issue in order to influence the supply and demand of credit capital, the balance of payments and exchange rates... Encyclopedia of Law

discount policy- a policy of increasing or decreasing discount rates pursued by central banks of issue in order to influence the demand and supply of loan capital, the state of the balance of payments and exchange rates. * * * DISCOUNT POLICY DISCOUNT… … Encyclopedic Dictionary

Discount policy- a policy of increasing or decreasing discount rates pursued by the central banks of issue of capitalist countries in order to influence the demand and supply of loan capital, the state of the balance of payments and exchange rates. See also... ... Great Soviet Encyclopedia

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DISCOUNT POLICY- - a policy of increasing or decreasing discount rates pursued by central banks of issue in order to influence the demand and supply of loan capital, the state of the balance of payments and exchange rates ... Economics from A to Z: Thematic Guide

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DISCOUNT POLICY- – the policy of the financial system aimed at changing the discount rate on loans. A decrease in the discount rate reduces profitability, i.e. the amount of debt repayment is reduced, but the total amount of profitability increases due to an increase in the number of borrowers... Concise Dictionary of Economist

And there is a direct connection between the economy and their mutual influence. Therefore, the regulation of currency relations should be considered in the economic management system. And since the decisive role in managing the economy as a single integrated system belongs to the state, then in the sphere of currency relations the regulatory functions are also carried out by the state.

One of the instruments of regulation in the system of foreign exchange relations is the country’s foreign exchange policy.

Within the framework of the general goal of the state's monetary policy, its specific tasks at different stages of historical development are determined by the monetary and economic situation of the country, the processes occurring in the world economic system, and the balance of power on the world stage. Depending on these factors, each country determines the directions and forms of monetary policy. For example, at one stage it is necessary to focus efforts on overcoming the consequences of the currency crisis, at another - to direct the main efforts to stabilize and strengthen the national currency. And at some stage it becomes possible to liberalize the country’s currency relations. But in the context of economic globalization and integration processes taking place in the world economy, there cannot be an absolutely independent monetary policy in a single country. When establishing the principles of relations between countries, discrimination against weaker states is inevitable. And this factor also affects the regulation of currency relations between countries.

State monetary policy and methods of its implementation

Monetary policy is a set of legal, organizational and other measures in the field of currency relations carried out by the state within the country and in international monetary relations in accordance with the current and strategic goals of the country.

Market and state regulation of currency relations is carried out in parallel, complementing each other. Market regulation is based on the law on the relationship between supply and demand of currencies in the foreign exchange market. Depending on this, their exchange rate ratio is established. But significant fluctuations in exchange rates negatively affect both the national and global economies and lead to serious social consequences. Government regulation is designed to eliminate these negative consequences.

Monetary policy is an integral part of the country's overall economic policy and serves as a tool for expanding foreign economic activity and world economic relations. Depending on the goals, current and long-term (structural) policies are distinguished.

Task current monetary policy consists in ensuring the normal functioning of national and international currency mechanisms, in the operational regulation of the exchange rate, foreign exchange transactions, and the foreign exchange market.

Long-term (structural) monetary policy covers a fairly long period of time and represents a set of measures aimed at implementing consistent changes in such key elements of the monetary system as the procedure for conducting international payments, the regime of exchange rates and parities, the use of gold and reserve currencies, and international means of payment.

Objective factors for the implementation of long-term monetary policy are the strengthening of economic interdependence of national economies and changes in their role in the world economy. The main methods of its implementation are interstate negotiations and agreements, currency reforms.

Forms of monetary policy

The main forms of the state's foreign exchange policy are: discount, motto policy and its variations - foreign exchange intervention, foreign exchange restrictions, regulation of currency convertibility, exchange rate regimes, devaluation, revaluation, diversification of foreign exchange reserves.

Discount foreign exchange policy

Discount foreign exchange policy as an element of the state's current monetary policy is to use the discount interest rate to regulate the movement of investments, balance payment obligations, and adjust the exchange rate. Through a system of economic and legal measures used for these purposes, discount policy affects the domestic economy and the sphere of international economic relations - the state of money demand, the dynamics and level of prices, and the migration of investments.

Motto monetary policy

Motto monetary policy consists of regulation through the purchase and sale of foreign currency using foreign exchange intervention, as well as the application of foreign exchange restrictions. Currency intervention is a method of government agencies influencing the exchange rate of the national currency: in order to increase it, the Central Bank sells foreign currency in exchange for national currency, and to reduce it buys foreign currency, thus influencing the relationship between supply and demand.

Currency intervention

To cover foreign currency expenses when conducting interventions official gold and foreign exchange reserves or mutual loans from central banks under interbank agreements are used. In some countries, special stabilization funds are created for this purpose. And since the mid-70s, collective foreign exchange intervention has been practiced by the central banks of a number of countries to regulate the exchange rate of leading currencies.

The disadvantage of foreign exchange intervention as a tool for influencing the exchange rate is the huge costs, which are not always justified. They give a temporary result, but may not overcome the influence of market factors in exchange rate formation and may not lead to the stabilization of exchange rates.

A traditional element of the state's foreign exchange policy is the regulation of exchange rate regimes and currency convertibility. These issues are the subject of both national and interstate regulation. The body of interstate currency regulation is the IMF. In 1978, after changes were made to the Charter, the Fund gave member countries the freedom to choose their exchange rate regime. Now each country independently decides issues relating to the establishment of the exchange rate regime of the national currency and the degree of its convertibility.

Devaluation and revaluation

The content of the concepts of devaluation and revaluation has changed in connection with changes occurring in the monetary and foreign exchange systems. During the period of the gold standard, devaluation meant a reduction by the state of the official gold content of a monetary unit, and revaluation meant an increase in its gold content. World economic crisis 1929-1933 led to the collapse of the gold standard. After this and until the abolition of gold parities in 1976-1978. devaluation and revaluation meant a change not only in the gold content, but also in the exchange rate of national currencies in relation to foreign currencies.

Changes in the exchange rates of national currencies in relation to foreign ones are officially fixed in law only periodically. Under the conditions of a floating exchange rate regime, their changes occur constantly, therefore, over a relatively long period of time, there may be a significant decrease in the market rate of the national currency. Such a long-term and significant depreciation of the national currency in relation to foreign currencies, occurring spontaneously, is also called devaluation in the modern sense of the term.

Market and state currency regulation complement each other: in conditions of crisis shocks, wars, post-war devastation, state currency regulation prevails; when the monetary and economic situation improves, currency transactions are liberalized, market competition in this area is encouraged, but the state always maintains currency control for regulation purposes and supervision of foreign exchange relations.

In the system of regulation of a market economy, an important place is occupied by monetary policy– a set of activities carried out in the field of international monetary and other economic relations in accordance with the current and strategic goals of the country.

Monetary policy, depending on the goals and forms, is divided into the following types:

Structural monetary policy– a set of long-term measures aimed at implementing structural changes in the world monetary system, which is implemented in the form of currency reforms carried out in order to improve its principles in the interests of all countries, and is accompanied by a struggle for privileges for individual currencies.

Current monetary policy– a set of short-term measures aimed at everyday, operational regulation of the exchange rate, foreign exchange transactions, activities of the foreign exchange market and the gold market.

Monetary policy is aimed at achieving the main goals of economic policy within the framework of the “magic polygon”: ensuring the sustainability of economic growth, curbing the growth of unemployment and inflation, maintaining balance of payments equilibrium.

At different historical stages, specific objectives of monetary policy come to the fore: overcoming the currency crisis and ensuring currency stabilization, currency restrictions, the transition to currency convertibility, liberalization of foreign exchange transactions, and others.

The direction and forms of monetary policy are determined by the monetary and economic situation of the country, the evolution of the world economy and the balance of power on the world stage.

Monetary policy combines two opposing trends: coordination of actions and the search for joint ways to solve currency problems, on the one hand, and disagreements due to the desire of each country to gain advantages at the expense of others, to impose its will on them, on the other. In this regard, currency wars periodically arise between countries over markets, areas for investment of capital, sources of raw materials through various forms of monetary policy.

Legally, foreign exchange policy is formalized by foreign exchange legislation - a set of legal norms regulating the procedure for carrying out transactions with foreign currency values in the country and abroad, as well as foreign exchange agreements (bilateral and multilateral) between states on currency issues.

Forms of monetary policy

Discount policy;

Monetary policy and foreign exchange intervention;

Diversification of foreign exchange reserves;

Currency regulation;

Currency restrictions.

Discount (accounting) policy

Discount (accounting) policy is a form of foreign exchange policy based on changing the discount rate of the central bank in order to regulate the exchange rate and balance of payments by influencing international capital flows, on the one hand, and the dynamics of domestic loans, money supply, prices, aggregate demand– on the other.

In modern conditions, the effectiveness of the discount policy has decreased, since in the context of lowering interest rates in order to revive the market situation, there is an outflow of capital, which negatively affects the balance of payments.

Motto policy

The motto policy is a form of foreign exchange policy in which the exchange rate of the national currency is set under the influence of the purchase and sale of foreign currency (mottos) by government agencies.

The monetary policy is carried out primarily in the form of foreign exchange intervention, that is, the intervention of the central bank in operations on the foreign exchange market in order to influence the exchange rate of the national currency through the purchase and sale of foreign currency at the expense of official gold and foreign exchange reserves or short-term mutual loans from central banks in national currencies under interbank agreements." swap".

Foreign exchange policy directly affects the exchange rate, but temporarily and to a limited extent.

Diversification of foreign exchange reserves

Diversification of foreign exchange reserves is a form of foreign exchange policy of the state, banks and TNCs, aimed at regulating the structure of foreign exchange reserves by including different currencies in their composition in order to ensure international payments, conduct foreign exchange intervention and protect against foreign exchange losses.

Diversification of foreign exchange reserves is carried out by selling unstable currencies and purchasing more stable ones, as well as currencies necessary for international payments.

Currency regulation– state regulation of the conditions of international payments and the procedure for conducting currency transactions.

Currency regulation happens direct– the effect of legislative acts and executive power, and indirect– monetary and credit methods of influencing the behavior of economic agents of the market, and contains several levels:

National level;

Regional level;

Interstate level.

The national level includes private enterprises, national and international banks, corporations that have enormous foreign exchange resources and are actively involved in foreign exchange transactions, and the state (Ministry of Finance, Central Bank, foreign exchange control authorities).

Interstate currency regulation (IMF, G7) regulates the structural principles of the world monetary system, coordinates the monetary policy of individual countries, harmonizes the foreign exchange policies of the leading countries of the world and implements joint measures to overcome the currency crisis.

The main reasons for interstate regulation are the increased interdependence of national economies, a change in the relationship between market and state regulation in the context of liberalization of economic relations, a change in the balance of power on the world stage and the formation of three centers: the USA, Western Europe, Japan, an increase in the scale of world currency, credit and financial markets .

Regional currency regulation is carried out within the framework of economic integration associations, for example in the EU.

The main object of foreign exchange regulation as a form of foreign exchange policy is the regime of exchange parities and exchange rates. There are about a dozen exchange rate regimes in the world, since the amended IMF Charter (1978) gave member countries the freedom to choose them.

At the end of the 90s, 51 currencies “floated” independently (USA, UK, Switzerland, Japan, Canada and others), 49 countries practiced regulated “floating” of the exchange rate (Brazil, Hungary, China, Russia and a number of CIS countries), 20 currencies – pegged to the US dollar, 12 currencies – to the EURO, 18 currencies – to various currency baskets.

As part of currency regulation, they may apply devaluation and revaluation–traditional forms of monetary policy.

Devaluation– depreciation of the national currency against foreign currencies or international currency units, and previously against gold. Revaluation– an increase in the exchange rate of the national currency against foreign currencies or international monetary units of account, and previously against gold.

Currency restrictions– a form of foreign exchange policy, including legislative or administrative prohibition, limitation and regulation of transactions of residents and non-residents with currency and other currency values.

The purposes of introducing currency restrictions:

Balance of payments alignment;

Maintaining the exchange rate;

Concentration of currency values in the hands of the state to solve current and strategic problems.

The main instruments of currency restrictions:

Regulation of international payments and capital transfers, repatriation of export earnings, profits, movement of gold, banknotes and securities;

Prohibition of free purchase and sale of foreign currency;

Concentration in the hands of the state of foreign currency and other currency values, including payment documents (checks, bills, letters of credit, etc.), securities, precious metals

Areas of application of currency restrictions:

Current balance of payments transactions:

blocking the proceeds of foreign exporters from the sale of goods in a given country, limiting their ability to manage these funds;

mandatory sale of foreign exchange earnings of exporters in whole or in part to central and authorized (devis) banks that have a foreign exchange license from the central bank within a specified time frame (for example, within 30 days);

limited sale of foreign currency to importers (only with permission from the currency control authority);

restrictions on forward purchases by foreign currency importers;

prohibition of the sale of goods abroad in national currency;

prohibition of payment for the import of certain goods in foreign currency;

multiple exchange rates (differentiated exchange rate ratios of currencies for various types of transactions, product groups and regions).

Financial transactions of the balance of payments:

Active balance of payments:

depositing new foreign obligations of banks and organizations into an interest-free account (deposit) with the central bank;

a ban on investments by non-residents and sales of national securities to foreigners;

mandatory conversion of foreign currency loans at the national central bank;

a ban on the payment of interest on time deposits of foreigners in national currency;

the introduction of a negative interest rate on deposits of non-residents in national currency, which are paid either by the depositor to the bank, or by the bank itself to the state foreign exchange institution;

restrictions on forward sales of national currency to foreigners.

Passive balance of payments:

limiting the export of national and foreign currency, gold, securities, and the provision of loans;

control over the activities of the credit and financial markets, in which transactions are carried out only with the permission of the Ministry of Finance and upon provision of information on the amount of loans issued and direct investments abroad, attraction of foreign loans subject to the prior permission of the exchange control authorities;

limiting the participation of national banks in providing international loans in foreign currency;

forced withdrawal of foreign securities owned by residents and their sale for foreign currency;

complete or partial cessation of repayment of external debt or permission to pay it in national currency without the right to transfer it abroad.

Principles of currency restrictions:

Centralization of foreign exchange transactions in the central and authorized (motto) banks;

Licensing of foreign exchange transactions;

Complete or partial blocking of foreign currency accounts;

Limiting the convertibility of currencies and introducing various categories of currency convertibility: freely convertible, domestic (in national currency with use within the country), under bilateral government agreements, clearing, blocked and others.

Currency restrictions are discriminatory in nature, as they contribute to the redistribution of currency values in favor of the state and large enterprises at the expense of small and medium-sized entrepreneurs, making it difficult for them to access foreign currency. Foreign exchange restrictions are usually part of policies of protectionism and discrimination against trading partners.

Thus, foreign exchange restrictions are an integral part of general economic and monetary policy. When moving to currency convertibility, most countries preferred the option that ensures its stabilization rather than a rapid depreciation.

The number of countries that have acceded to Article VIII of the Charter of the International Monetary Fund, which contains an orientation towards the market mechanism of competition and regulation of foreign exchange relations, is gradually expanding; deregulation of foreign exchange transactions is combined with the preservation of foreign exchange control for supervision and accounting and statistical functions: in 1965 - 27, in 1978 – 46 (1/3 of IMF member countries), in 1985 – 60 (40%), in 1994 – 88 (49%), in 1999 – 147 (80%), including the Russian Federation since June 1996.

Currency control– a system of measures aimed at ensuring compliance with currency legislation through inspections of foreign exchange transactions of residents and non-residents.

In the process of foreign exchange control, the availability of licenses and permits, compliance by residents with requirements for the sale of foreign currency on the national foreign exchange market, the validity of payments in foreign currency, and the quality of accounting and reporting on foreign exchange transactions are checked.

The functions of currency control are traditionally assigned to the central bank, although in a number of countries special bodies are created.

In Russia authorities currency control are the Government and the Bank of Russia, agents currency control - the Russian Federal Service for Currency and Export Control (VEC), the State Customs Committee (SCC), federal tax police authorities and others, direct executors currency control - authorized commercial banks reporting to the Bank of Russia.

Currency control authorities strictly monitor compliance with relevant legislation, prices, accounts, and apply fines and sanctions for violations.

The state policy in the field of monetary and credit relations is called foreign exchange policy.

Target This policy is to achieve the optimal parameters of the “magic” quadrangle and, above all, the balance of payments.

Monetary policy is classified according to the following criteria:

1. According to duration distinguish:

· short-term foreign exchange policy (involves day-to-day operational regulation of the exchange rate, foreign exchange transactions, activities of the foreign exchange market and the gold market),

· long-term monetary policy aimed at implementing structural changes in the global monetary system.

2. Depending on tools used distinguish:

· discount policy.

motto policy,

· diversification policy

· regime policy.

Discount (accounting) policy is a change in the Central Bank discount rate aimed at regulating the exchange rate and balance of payments by influencing international capital movements, on the one hand, and the dynamics of domestic loans, money supply, prices, and aggregate demand, on the other.

For example, with a passive balance of payments and relatively free movement of capital, an increase in the discount rate can stimulate the inflow of capital into the country and restrain the outflow of national capital, which helps improve the balance of payments and increase the exchange rate. By lowering the official rate, the Central Bank is counting on the outflow of national and foreign capital in order to reduce the balance sheet surplus and depreciate the national currency.

In modern conditions, the effectiveness of discount policy has decreased. The main reason is that in conditions of instability, the discount rate does not always determine the movement of capital. Nevertheless, the situation in the world is characterized by the fact that the level of interest rates in the USA is lower than in Western Europe and Japan.

Motto policy- this is the impact on the exchange rate of the national currency through the purchase and sale of foreign currency by government agencies.

In order to increase the exchange rate of the national currency, the Central Bank sells, and to decrease it buys foreign currency in exchange for national currency.

The monetary policy is carried out mainly in the form of foreign exchange intervention, that is, the intervention of the Central Bank in operations on the foreign exchange market in order to influence the exchange rate of the national currency. Foreign exchange intervention is carried out at the expense of official gold and foreign exchange reserves or short-term mutual loans from central banks in national currencies under interbank swap agreements.

To carry out foreign exchange intervention at the expense of gold and foreign exchange reserves, countries are creating currency stabilization funds - government funds in gold, foreign and national currencies. Such a Fund operates, for example, in France. The Bank of France does not publish data on its size, so as not to disclose the nature and scale of its intervention operations. In the USA, the volume of this Fund is $2 billion (has not changed since 1934). Practically not used, since the Federal Reserve Banks carry out currency intervention under swap agreements. In the UK, the Fund unites all the official gold and foreign exchange reserves of the country.

Disadvantages of the motto policy - this policy affects the exchange rate temporarily and to a limited extent. It does not achieve its goal if market factors are stronger than government regulation. Thus, in April 1998, the Bank of Japan sold 10% of foreign exchange reserves on the foreign exchange market, but was unable to contain the fall of the yen to a record low level for the previous 8 years - 1380 yen per $1. In this regard, Japan decided to limit foreign exchange interventions.

Diversification policy – This is a policy of diversifying foreign exchange reserves by including different currencies. This policy is usually carried out by selling unstable currencies and buying more stable currencies, as well as currencies needed for international payments.

Recently, in most countries of the world in official foreign exchange reserves there has been a decrease in the share of US dollars from 84.5% to 60%, an increase in the share of the German mark to 20%, and an increase in the share of the Swiss franc and the Japanese yen.

Regime policy – involves the use of one or another exchange rate regime: fixed, floating (free float, managed float), mixed regime.

At the end of the 90s, 51 currencies floated independently (USA, UK, Switzerland, Japan, Canada, etc.). Controlled swimming was practiced in 49 countries (Brazil, Hungary, China, Russia, etc.).

20 currencies are pegged to the US dollar. 14 – to the French franc, 4 – to the SDR., 12 – to the ECU. 18 – to various currency baskets.

Basic methods monetary policy:

· devaluation,

· revaluation.

Devaluation– depreciation of the national currency in relation to foreign currencies or international currency units.

Revaluation– an increase in the exchange rate of the national currency in relation to foreign currencies or international currency units.

In conditions of floating exchange rates, devaluation and revaluation occur spontaneously on the market every day and changes in exchange rates are only periodically fixed by law.

Example. On November 18, 1967, the pound sterling officially dropped from $2.8 to $2.4. Thus, the devaluation (D) was:

D = (2.8 –2.4)/ 2.8 x 100% = 14.3%.

The currencies of foreign countries that did not devalue at the same time as the pound sterling rose in price. At the same time, the % revaluation of foreign currency (for example, $) was:

R = (1/2.4 – 1/2.8) / 1/2.8 x 100% = (0.41-0.35) /0.35 x 100% = 16.7%

As a result, the devaluation premium will be received by:

· English exporters from exchanging dollar proceeds into pounds,

· English debtors repaying debt in pounds sterling,

· American importers who pay for goods in pounds sterling,

· American debtors repaying debt in pounds sterling,

· lenders who issued loans in $.

At the same time, the following will be at a loss:

· English importers buying goods for $,

· English debtors repaying their debt in dollars,

· American exporters selling goods for dollars and exchanging proceeds for pounds sterling,

· American debtors repaying their debt in dollars,

· lenders who provided loans in pounds sterling.

In the Russian Federation, the main type of foreign exchange policy is the monetary policy in the form of foreign exchange intervention by the Central Bank.

A certain role in monetary policy is played by the discount policy—maneuvering the refinancing rate of the Central Bank. However, the effectiveness of this policy is limited for two reasons:

firstly, the motives for changing the refinancing rate are not only considerations related to the exchange rate, but also the objectives of domestic monetary policy,

secondly, currency restrictions prevent the free movement of short-term capital and, thereby, weaken the reaction of this movement and, accordingly, the exchange rate to changes in the level of the refinancing rate.

Regime policy also plays an important role in the Russian Federation. In accordance with the Decree of the President of the Russian Federation “On the liberalization of foreign economic activity on the territory of the RSFSR” dated November 15, 1991, a floating exchange rate regime was established in Russia. Meanwhile, over the past period, this regime has undergone changes several times.

1991 – 1994 – free floating under the influence of supply and demand.

1994 – until mid. 1996 - the introduction of a horizontal currency corridor, which worsened the competitiveness of Russian exports.

Ser. 1996 – 1997 – introduction of a “sloping” currency corridor.

1998 – return to the horizontal currency corridor.

Since September 1998 - the abolition of the currency corridor and the introduction of a freely floating ruble exchange rate.

Diversification of the country’s foreign exchange reserves can also be considered as an additional monetary policy. Currently, the currency basket of the Central Bank's reserves includes 75% - US dollars, 20% - German marks, 5% - other currencies. The share of dollars and German marks is significantly higher than the world average. The introduction of the euro should lead to the replacement of German marks with this new currency.

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The following main forms are used: discount, motto policy and its variety - foreign exchange intervention, diversification of foreign exchange reserves, foreign exchange restrictions, regulation of the degree of currency convertibility, exchange rate regime, devaluation, revaluation.

Discount policy (accounting)- a change in the discount rate of the central bank, aimed at regulating the exchange rate and balance of payments by influencing the international movement of capital, on the one hand, and the dynamics of domestic loans, money supply, prices, aggregate demand, on the other. For example, with a passive balance of payments in conditions of relatively free movement of capital, an increase in the discount rate can stimulate the inflow of capital from countries with lower interest rates and restrain the outflow of national capital, which helps improve the balance of payments and increase the exchange rate. By lowering the official rate, the central bank is counting on the outflow of national and foreign capital in order to reduce the active balance of the balance of payments and depreciate the exchange rate of its currency.

In modern conditions, the effectiveness of discount policy has decreased. This is explained primarily by the contradiction of its internal and external goals. If interest rates are reduced in order to revive the market situation, this will negatively affect the balance of payments if it causes an outflow of capital. Raising the discount rate to improve the balance of payments has a negative effect on the economy if it is in a state of stagnation. The effectiveness of the discount policy depends on the influx of foreign capital into the country, but in conditions of instability, interest rates do not always determine the movement of capital. Regulation of international capital and credit movements also weakens the impact of accounting policies on the balance of payments. This results in the short duration and relatively low efficiency of the discount policy. The discount policy of leading countries, primarily the United States, has a negative impact on competitors, who are forced to raise or lower interest rates contrary to national interests. As a result, interest rate wars periodically flare up.

Motto policy - a method of influencing the exchange rate of the national currency through the purchase and sale of foreign currency by government agencies (motto). In order to increase the exchange rate of the national currency, the central bank sells, and in order to decrease it, it buys foreign currency in exchange for the national one. The monetary policy is carried out mainly in the form of foreign exchange intervention, that is, the intervention of the central bank in operations on the foreign exchange market in order to influence the exchange rate of the national currency through the purchase and sale of foreign currency.

Its characteristic features are a relatively large scale and a relatively short period of application. Foreign exchange intervention is carried out at the expense of official gold and foreign exchange reserves or short-term mutual loans from central banks in national currencies under interbank swap agreements.

Currency intervention began to be used from XIX V. For example, the State Bank of Russia and the Austro-Hungarian Bank resorted to it to maintain the exchange rate of the national currency. After the abolition of gold monometallism, currency intervention became widespread. In the conditions of the global economic crisis in 1929-1933.

State monetary policy: concept, directions, tools

Central banks used foreign exchange intervention to depreciate their currencies to facilitate currency dumping.

The material basis for currency intervention was created in the 30s in the USA, Great Britain, France, Italy, Canada and other countries currency stabilization funds - government funds in gold, foreign and national currencies, used for foreign exchange intervention to regulate the exchange rate. In modern conditions, the purpose and role of these funds have specific features in individual countries. In France, this is a trust fund allocated within the framework of official gold and foreign exchange reserves. The Bank of France does not publish data on its size, so as not to disclose the nature and scale of its intervention operations. In the United States, the Currency Stabilization Fund has lost its real significance (its volume of $2 billion has remained unchanged since its creation in 1934), since the Federal Reserve Banks carry out foreign exchange intervention mainly through loans from foreign central banks under swap agreements. In Great Britain, the Currency Stabilization Fund now unites all the official gold and foreign exchange reserves of the country.

A new phenomenon after the Second World War was the creation of an interstate currency regulation body - the IMF, as well as a regional one - the EFMS, which was replaced in 1994 by the European Monetary Institute, and since July 1998 - by the European Central Bank.

Under the Bretton Woods system, foreign exchange intervention was systematically carried out in order to maintain fixed exchange rates. Since the main currency of the intervention was the dollar, the United States thus entrusted other countries with the responsibility of maintaining its exchange rate. With the transition to floating rates in the Jamaican system, foreign exchange intervention is aimed at smoothing out sharp exchange rate fluctuations. In the EMU, foreign exchange intervention is used to support exchange rates within the established limits of their fluctuations. The German mark began to be used as an intervention currency along with the dollar.

Since the mid-70s, collective foreign exchange intervention has sometimes been used by the central banks of a number of countries. In May 1974 The Basel Agreement on collective intervention by the USA, Germany, and Switzerland was signed, to which France joined in February 1975. At a meeting in Rambouillet (1975), the heads of government of six countries confirmed the need for a joint monetary policy and mutual support. Since December 1975, the G10 countries have carried out joint foreign exchange intervention based on swap agreements. Since 1985, the five leading industrialized countries have periodically carried out joint foreign exchange interventions to regulate the exchange rate of leading currencies. Foreign exchange policy directly affects the exchange rate, but temporarily and to a limited extent. Huge costs of foreign exchange intervention do not always ensure the stabilization of exchange rates if market factors of exchange rate formation are stronger than government regulation. For example, the Bank of Japan sold more than $21 billion (10% of foreign exchange reserves) on the foreign exchange market in April 1998, but could not contain the fall in the yen exchange rate to a record low level over the previous 8 years (1,380 yen per dollar) and decided to limit the foreign exchange intervention.

Diversification of foreign exchange reserves - the policy of states, banks, TNCs, aimed at regulating the structure of foreign exchange reserves by including different currencies in their composition in order to ensure international payments, conduct foreign exchange intervention and protect against foreign exchange losses.

This policy is usually carried out by selling unstable currencies and buying more stable ones, as well as currencies necessary for international payments. The instability of the US dollar caused fluctuations in its share in the official foreign exchange reserves of the capitalist world (84.5% in 1973, 71.4% in 1982, about 60% in the 90s). The share of the German mark (20% in 1998), the Japanese yen, and the Swiss franc in official reserves is gradually increasing in conditions of relative strengthening of their positions.

Regime of currency parities and exchange rates is the object of national and interstate regulation. In accordance with the Bretton Woods Agreement, countries fixed the exchange rates of their national currencies with the IMF based on the market rate against the dollar and, in accordance with the official price of gold ($35 per troy ounce), established the gold content of their currencies. The Fund's member states have pledged not to allow deviations in the exchange rate of their currencies on the market by more than ± 1% of parity (according to the European Monetary Agreement, ±0.75% for Western European countries). Under the regime of fixed exchange rates, there were periodic "exchange rate distortions" - discrepancies between official and market exchange rates, which exacerbated currency contradictions.

Devaluation And revaluation are used as a method of monetary policy in the case when the exchange rate of the national currency in relation to foreign currencies or international units of account is overestimated or underestimated in comparison with the market one. Devaluation is a decrease in the exchange rate of a national currency, and revaluation is an increase in its exchange rate. The content of the concepts of devaluation and revaluation has changed in connection with changes occurring in the monetary and foreign exchange systems. During the period of the gold standard, devaluation meant a reduction by the state of the official gold content of a monetary unit, and revaluation meant an increase in its gold content. World economic crisis 1929-1933 led to the collapse of the gold standard. After this and until the abolition of gold parities in 1976-1978. devaluation and revaluation meant a change not only in the gold content, but also in the exchange rate of national currencies in relation to foreign currencies.

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This article discusses the problems of the exchange rate policy of the Russian ruble. Attention is paid to the Russian economy, its currency and financial system.

The exchange rate of the ruble and the exchange rate policy of the Bank of Russia are constantly in the spotlight, because The stability of our currency, which is necessary for the growth and development of the economy and ensuring the material well-being of the country's citizens, depends on the stability of the exchange rate and the effectiveness of exchange rate policy. The exchange rate is still the main guideline for the monetary policy of the Bank of Russia.

Exchange rate policy reflects the characteristics of the Russian economy, its currency and financial system. The nature and openness of the Russian economy determine its constant and, for now, forced significant dependence on the state of the world economy and, above all, on the situation in the oil and gas market. The main feature of our economy is that it is rent-based. Revenues from the exploitation of natural resources, primarily oil and gas fields, account for approximately 75% of total net income. The primitive structure of the economy, in which the manufacturing industry is very poorly developed, determines the specifics of all spheres of the economic system, in particular the monetary and foreign exchange sphere. The country's monetary system is essentially a type of so-called currency board.

Exchange rate regime is a system for forming the proportions of exchanging national currencies for foreign ones; varies from a rigid peg, for example, to gold (the gold standard), to a freely floating exchange rate, when the price is determined solely by market forces.

Since exchange rate fluctuations have such a strong impact on the development of the national economy, the modern state uses various exchange rate regimes. There are two main exchange rate regimes: floating rates and fixed rates.

Floating exchange rates are rates formed under the influence of supply and demand in the foreign exchange market. Fixed rates are rates officially established by the state and artificially maintained by it through a certain monetary policy.

Each country chooses its optimal exchange rate regime, putting at the forefront either the tasks of minimizing the impact of changes in global market conditions on production, protection against inflation, or the regulating role of exchange rates, the “openness” of the economy.

Topic 5. Monetary policy

Therefore, in their pure form, fixed and floating rates are used quite rarely.

Since a fixed or managed exchange rate regime increases the economy's dependence on external conditions, it also makes monetary policy dependent on the policies of other countries and the foreign economic situation. Under the managed exchange rate regime, when external conditions change, the central bank is forced to carry out operations to influence the exchange rate of the national currency, which can also affect other economic indicators, including the inflation rate, and in an undesirable direction.

A floating exchange rate allows the Bank of Russia to pursue an independent monetary policy aimed at solving internal problems, primarily at reducing inflation.

A floating exchange rate regime is currently in effect in most developed countries.

The role of the Bank of Russia in the foreign exchange market

The introduction of a floating exchange rate regime means the refusal of the Bank of Russia to carry out regular foreign exchange interventions in order to influence the ruble exchange rate. The policy of the central bank with a floating exchange rate is to, under normal conditions, not interfere in market processes and allow the ruble exchange rate to fulfill its role as a “built-in stabilizer.”

However, the Bank of Russia continues to closely monitor the situation on the foreign exchange market and may conduct transactions with foreign currency (including on a repayable basis) in order to maintain financial stability.

As a threat to financial stability, the Bank of Russia considers such dynamics of the exchange rate, which can lead to the formation of stable devaluation expectations, increased demand for cash foreign currency, increased dollarization of deposits and a significant deterioration in the financial stability of credit institutions and enterprises.

The Bank of Russia can conduct operations on the foreign exchange market and to replenish international reserves. A significant volume of international reserves will give the Bank of Russia the opportunity to conduct operations in order to maintain financial stability, as well as ensure uninterrupted servicing of external debt for several years, even in a difficult economic situation.

Operations to replenish international reserves should be carried out in small volumes so as not to affect the dynamics of the ruble exchange rate.

When making decisions on the purchase of foreign currency, the Bank of Russia takes into account the dynamics of the exchange rate, the state of the Russian economy and the balance of payments.

Thus, the following conclusions can be drawn.

Russia has a floating exchange rate regime. This means that the ruble exchange rate is not fixed and no targets are set for the level of the exchange rate or the rate of its change. The dynamics of the ruble exchange rate is determined by the ratio of demand for foreign currency and its supply in the foreign exchange market. A flexible exchange rate helps the Russian economy adapt to changing external conditions, smoothing out the impact of external factors on it.

Under normal conditions, the Bank of Russia does not carry out foreign exchange interventions in order to influence the dynamics of the ruble exchange rate. At the same time, the Bank of Russia closely monitors the situation on the foreign exchange market and can carry out transactions with foreign currency to maintain financial stability.

CURRENCY POLICY, a set of economic, legal and organizational measures and forms carried out by government bodies, central banks and financial authorities in the field of international monetary and economic relations; an integral part of the state's economic policy. On a global scale, monetary policy is carried out by international monetary and financial organizations (International Monetary Fund, international banks).

The national monetary policy is aimed at solving the main objectives of the country's economic policy: ensuring sustainable rates of economic growth, achieving price stability, reducing unemployment and inflation, and preventing imbalances in the balance of payments. One of the main goals of monetary policy itself is to maintain stable dynamics of the national currency exchange rate. The direction and forms of monetary policy are determined by the monetary and economic situation of the country, trends in the development of the world economy, and the balance of power on the world stage. At different stages, specific tasks of monetary policy are solved: combating the monetary and financial crisis and overcoming its consequences; liberalization of foreign exchange transactions; transition to the convertibility of the national currency, etc. The goals of foreign exchange policy at the international level: regulation of the structural principles of the world monetary system, coordination of foreign exchange policies of different countries, implementation of joint measures to overcome monetary and financial crises.

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Until the 1930s, the scope of monetary policy was limited by the existing gold standard system. During the economic crisis of the 1930s, the monetary policy of many countries was aimed at implementing currency dumping - artificially lowering the exchange rates of their currencies to encourage the development of exports. Within the framework of the Bretton Woods monetary system, the presence of narrow limits for deviations of national currencies relative to central parity also limited national monetary policy.

Since the end of the 20th century, the main constraint on independent national monetary policy has been the increased intercountry mobility of capital, which raises the importance of conducting monetary policy at the international level. In May 1974, the United States, Germany and Switzerland signed an agreement on collective intervention in Basel, which France joined in February 1975. However, in practice, a coordinated monetary policy at the international level is rarely carried out due to diverging national economic interests and the limited volume of foreign exchange reserves.

The main instruments of monetary policy: foreign exchange intervention, foreign exchange restrictions, foreign exchange reserves. The elements of monetary policy are: exchange rate policy; currency regulation; diversification of foreign exchange reserves; international monetary cooperation, including monetary integration and participation in international monetary and financial organizations.

Exchange rate policy is a system for regulating exchange rate dynamics by choosing an exchange rate regime, conducting foreign exchange interventions, and introducing and lifting foreign exchange restrictions. The choice of exchange rate regime is carried out within a wide range, from a strictly fixed to a freely floating exchange rate, including such intermediate forms as a “crawling peg”, a currency corridor (crawling band), a managed floating regime, etc. Within the framework of the Bretton Woods currency system, a regime of fixed exchange rates against the dollar was in effect with deviations within ± 1% of the central parity. After the end of the exchange of the dollar for gold in August 1971, most industrialized countries switched to floating exchange rates. In the EU countries, in 1972, the mechanism of the “European currency snake” was introduced - a regime of joint fluctuations in the rates of national currencies within narrow limits of their mutual deviations.

63 State monetary policy: concept, tools, directions.

It subsequently evolved into the European Exchange Rate Mechanism II (ERM II), which predates the introduction of the single European currency, the euro, and is currently applied to countries seeking to adopt the euro as their national currency as part of the European integration process.

After the collapse of the Bretton Woods system, developing countries for some time maintained the peg of their national currencies to the currencies of leading countries. Since the early 1980s, they have gradually moved towards more flexible exchange rate regimes. However, the so-called fear of free float remains among these countries, and most of them support a regime of managed float of their currencies. At the end of 2004, 53 IMF member countries used some kind of fixed exchange rate, 51 countries used a managed floating regime, and 35 countries used an independent floating regime.

Currency regulation is the regulation by the state of international payments and the procedure for conducting currency transactions. Currency regulation makes it possible to limit the negative impact of external factors on the exchange rate of the national currency. It is aimed at solving such problems as maintaining the exchange rate of the national currency, preventing excessive inflow of short-term capital into the country, curbing the outflow of capital, protecting national producers and financial markets from international competition, increasing the supply of foreign currency in the domestic foreign exchange market to replenish foreign exchange reserves. Foreign exchange regulation may allow the introduction of restrictions on transactions related to the current account of the balance of payments (current transactions) and on transactions related to cross-border capital movements (capital transactions).

Diversification of foreign exchange reserves involves regulating the structure of foreign exchange reserves in order to ensure their protection from currency risks, as well as to carry out the necessary international payments. Usually there is a sale of unstable currencies and the purchase of more stable ones. The structure of world foreign exchange reserves is dominated by several currencies: the US dollar, the euro, the Japanese yen and the pound sterling. The share of the euro in foreign exchange reserves increased from 12.6% at the end of 1999 to 24.9% at the end of 2004, during this period the share of the dollar decreased from 67.9 to 65.9%.

International monetary cooperation includes participation in international monetary and financial institutions and the conclusion of bi- and multilateral agreements in the field of monetary policy. An example of multilateral cooperation in the field of monetary policy is the annual (since 1975) meetings of the G7 countries (since 1998, G8).

The legal formalization of foreign exchange policy is currency legislation - a set of legal norms regulating the procedure for carrying out transactions with foreign currency values, and bilateral and multilateral currency agreements between states. In Russia, one of the basic ones for conducting foreign exchange policy is the Law “On Currency Regulation and Currency Control” (1992). Its latest edition (December 2003) implies a significant liberalization of foreign exchange regulations and the abolition of restrictions on capital transactions since 2007.

The mutual influence of the monetary and foreign exchange spheres implies the need for interaction between monetary (monetary) policy and foreign exchange policy. To achieve the goals of monetary policy, most monetary policy instruments are used: changes in the official interest rate, open market operations, and the establishment of minimum reserve requirements for commercial banks. With limited possibilities for foreign exchange interventions and liberalized foreign exchange regulation in many industrialized countries (including the EU and the USA), the main document influencing the national currency exchange rate is a change in the official interest rate.

The purpose of monetary policy in Russia is defined in the Law “On the Central Bank of the Russian Federation (Bank of Russia)” (2002) as protecting and ensuring the stability of the ruble. During the 1990s, monetary policy was actively used to achieve economic and financial stabilization. Russia's foreign exchange policy faces the challenges of introducing ruble convertibility for capital transactions, curbing dollarization of the economy, promoting the development of national exports, etc. The main instrument of foreign exchange policy in Russia at the present stage is the foreign exchange interventions of the Central Bank of the Russian Federation. Russia has a regime of managed exchange rate float.

Lit.: Moiseev S. R. International currency and credit relations. M., 2003; International monetary, credit and financial relations / Edited by L. N. Krasavina. 3rd ed. M., 2005.

M. Yu. Golovnin.

Motto monetary policy(Devise Currency Policy) - the policy of regulating the exchange rate through the purchase and sale of foreign currency. The National Bank carries out a monetary policy based on regulation of the exchange rate of the Ukrainian currency to foreign currencies through the purchase and sale of foreign currency in financial markets. The main goal of the currency policy motto is to ensure stability of the hryvnia exchange rate against foreign currencies, which, first of all, means the predictability of the dynamics of the exchange rate of the hryvnia against foreign currencies, which is achieved through the transparency and predictability of the actions of the National Bank. To achieve this goal, the National Bank uses the following regulatory mechanisms:

determining the official exchange rate of the hryvnia to foreign currencies;
regulating the demand and supply of currency in the interbank foreign exchange market through the purchase and sale of foreign currency (carrying out foreign exchange interventions);
introduction of certain restrictions on foreign exchange transactions.

The main types of foreign exchange interventions are:

proportional satisfaction of the amount declared by market entities at a single specific rate of foreign exchange intervention.
Monetary policy

If a decision is made to carry out foreign exchange intervention by proportionally satisfying the needs of market participants at a single specific rate of foreign exchange intervention, the National Bank brings to the attention of market participants on the day of the foreign exchange intervention the rate at which it intends to carry out the foreign exchange intervention;
currency auction;
targeted foreign exchange interventions for the sale of foreign currency to ensure that market entities fulfill their obligations in foreign currency determined by the National Bank. A market entity has the right to purchase foreign currency from the National Bank during targeted foreign exchange intervention solely to ensure the fulfillment of obligations in foreign currency determined by the National Bank.

The purpose of introducing certain restrictions on the implementation of foreign exchange transactions when implementing the motto of foreign exchange policy is to prevent events that negatively affect the interbank foreign exchange market of Ukraine or to prevent the spread of currency speculation, which can have a significant negative impact on the level of demand and supply of currency in the market, leading to a decrease in the level of the country's gold and foreign exchange reserves and destabilize the situation in the financial market as a whole. For example, the National Bank has the right to establish: the maximum margin by which the rate of purchase and sale of foreign currency may deviate from the official exchange rate of the hryvnia to foreign currency established by the National Bank; maximum limits for the sale of cash foreign currency to resident individuals and the like.

(See Monetary Policy, Discount Monetary Policy, Monetary Monetary Policy).

Question 17. The concept and essence of monetary policy

Monetary policy is a set of activities carried out in the field of international monetary and economic relations in accordance with the current and strategic objectives of the country. Monetary policy is aimed at achieving the main goals of global economic policy, ensuring sustainable economic growth, reducing unemployment, reducing inflation, and maintaining balance of payments equilibrium. In turn, the direction and specific forms of monetary policy are determined by the monetary and economic situation of the country, trends in the development of the world economy, and the balance of power on the world stage.

Therefore, at different stages, specific objectives of monetary policy are put forward, for example, overcoming the currency crisis, ensuring monetary and economic stabilization, introducing foreign exchange restrictions, liberalizing foreign exchange relations, transitioning to ruble convertibility, etc.

Legally, monetary policy is formalized by currency legislation, as well as agreements between states on currency issues. Depending on the goals and forms, monetary policy is divided into structural and current. Structural is aimed at implementing structural changes in the global monetary system. It is implemented in the form of currency reforms. The current monetary policy is focused on the implementation of short-term measures.

Discount policy consists of changing the central bank's discount rate. It is aimed, on the one hand, at regulating the exchange rate and balance of payments of the country by influencing the international movement of capital, and on the other, at the dynamics of domestic loans, money supply, prices and aggregate demand. For example, with a deficit balance of payments and a depreciation of the national currency, an increase in the discount rate stimulates the inflow of capital from those countries where this rate is lower, and at the same time restrains the outflow of capital from the country, thereby improving the balance of international payments and increasing the exchange rate of the national currency.

The monetary policy is a method of influencing the exchange rate of the national currency through the purchase and sale of foreign currency. It is usually carried out in the form of currency intervention, i.e. intervention of the central bank in operations on the foreign exchange market in order to regulate the exchange rate of the national currency through the purchase and sale of foreign currency. So, if it is undesirable to depreciate the national currency, in order to artificially increase the demand for it, the central bank sells foreign currency, and vice versa, if it is undesirable to increase the exchange rate, it buys it. Foreign exchange intervention is usually carried out at the expense of official foreign exchange reserves and loans under a swap transaction based on agreements between central banks. In modern Russia, the Central Bank often carries out foreign exchange intervention to curb the depreciation of the ruble against the dollar and euro, mainly through currency exchanges in Moscow and St. Petersburg, as well as on the interbank foreign exchange market.

Currently, the Central Bank of the Russian Federation is pursuing a policy of diversifying foreign exchange reserves.

Topic: State monetary policy

It occurs as a result of the inclusion of different currencies in foreign exchange reserves in order to ensure international settlements and protection against currency risks. This monetary policy is usually carried out by selling unstable currencies and buying more stable (for example, selling the pound sterling and buying the euro) currencies necessary for international payments.

One of the types of monetary policy is the regulation of the regime of currency parities and exchange rates. For example, in the first half of the 1970s, a number of Western European countries (Belgium, Italy, France) practiced a dual currency regime policy:

· an undervalued exchange rate of the national currency was used for commercial transactions (in order to stimulate exports);

· for financial transactions - market rate (to attract foreign capital and loans).

Devaluation and revaluation continue to be the traditional method of monetary policy.

Monetary policy can also be carried out in the form of currency restrictions, i.e. We are talking about the policy of limiting transactions with foreign currency values.

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Related information.

Discount (accounting) foreign exchange policy

Discount (accounting) policy is a change in the central bank's discount rate aimed at regulating the exchange rate and balance of payments by influencing international capital flows, on the one hand, and the dynamics of domestic loans, money supply, prices, and aggregate demand, on the other.

A country's balance of payments is the ratio of cash payments coming into the country from abroad and all its payments abroad during a certain period of time (year, quarter, month).

All foreign economic transactions of the country are expressed in value in the balance of payments. In most countries of the world, the balance of payments is compiled in the form recommended by the International Monetary Fund. There are: foreign trade balance, balance of services and non-commercial payments, balance of capital and credit movements. At the same time, the active balance of payments is the balance in which receipts exceed payments. A positive balance of payments helps strengthen the country's economic position. Passive balance of payments is a balance in which payments exceed receipts. The usual balance of payments deficit is covered by the use of its foreign exchange reserves or with the help of foreign loans and credits or the import of capital.

For example, with a passive balance of payments in conditions of relatively free movement of capital, an increase in the discount rate can stimulate the inflow of capital from countries with lower interest rates and restrain the outflow of national capital, which helps improve the balance of payments and increase the exchange rate. By lowering the official rate, the central bank is counting on the outflow of national and foreign capital in order to reduce the active balance of the balance of payments and depreciate the exchange rate of its currency.

In modern conditions, the effectiveness of discount policy has decreased. This is explained, first of all, by the contradiction of its internal and external goals. If interest rates are reduced in order to revive the market situation, this will negatively affect the balance of payments if it causes an outflow of capital. Raising the discount rate to improve the balance of payments has a negative effect on the economy if it is in a state of stagnation. The effectiveness of the discount policy depends on the influx of foreign capital into the country, but in conditions of instability, interest rates do not always determine the movement of capital. Regulation of international capital and credit movements also weakens the impact of accounting policies on the balance of payments. This results in the short duration and relatively low efficiency of the discount policy. The discount policy of leading countries, primarily the United States, has a negative impact on competitors, who are forced to raise or lower interest rates contrary to national interests. As a result, interest rate wars periodically flare up.

The policy of credit restriction (expensive money) is used, as a rule, in conditions of a rapid industrial boom and growth of economic activity. Its goal is to stop the process of active use of credit by business entities and the industrial boom, which often leads to overheating of the “economy”.

The policy of credit expansion (cheap money) is aimed at stimulating credit operations in the hope that more attractive lending conditions will contribute to economic activity, production growth and attracting foreign capital.

An increase in the discount rate stimulates capital inflows with a passive balance of payments, restrains the outflow of national capital, and increases the exchange rate.

In modern conditions, the effectiveness of discount policy is reduced due to the contradiction between foreign economic and internal economic goals. An increase in the discount rate has a negative impact on an economy that is in a state of stagnation. This measure is rather short-term.