International monetary and credit relations: what is it?

International monetary and credit relations are the aggregate system of economic relations that arises between countries in the process of acquiring various goods and rendering services. The entire payment and settlement system that occurs between suppliers, consumers, importers and exporters on a national scale is directly influenced by monetary relations.

International monetary and credit relations have passed in their development for many centuries. It was in ancient Greece and Rome, first appeared commodity exchange and bill of exchange, which later spread throughout Western Europe.

Further development of international monetary and credit and financial relations have been received in the banking system. This happened when the capitalist system replaced feudalism. Creation of a global world market, conditioned by a complex system of interconnection of productive forces and relations, deepening and division of labor processes, as well as their full mechanization and robotization, the establishment of a worldwide system of economic relations, the process of globalization and the internationalization of all economic ties - it is this set of factors that has a huge impact on International monetary and credit relations.

If a country needs to purchase certain products that it does not produce, it becomes necessary to apply for assistance to the country that is the producer of this product. At the same time, the question arises: how to pay for a given product, if the buyer's currency is not quoted in the seller's market, and the buyer does not have the supplier's currency available? It is this need for the exchange of its own means of payment that led to the formation of a foreign exchange market. This mechanism was the basis for the emergence of a category such as international monetary and credit relations.

In such an economic mechanism as the monetary system, there are many important elements, the main one being the exchange rate. This component is necessary for conducting foreign exchange transactions in the conduct of trading activities, with the circulation of capital and loans. It is also worth noting that the exchange rate is an unchanging component in the process of comparison of world and national markets, as well as the use of various economic indicators, reflected in national or foreign currency. In addition, it is this element that characterizes international credit relations and is used to re-evaluate the accounts of various companies and banking organizations. This process occurs with the participation of a generally accepted international payment means of payment.

International loans are directly involved in each stage of capital turnover:

1. The first stage is the transformation of the aggregate capital of cash into its production counterpart. This happens through the acquisition of equipment produced outside the country, a variety of raw materials, energy and, of course, fuel;

2. The second stage is sometimes the issue of loans for work in progress;

3. The final stage is the sale of manufactured goods in the world market.

There are many organizations that regulate international monetary and credit relations. The most important of them is the IMF. Its name stands for International Monetary Fund. On the territory of states there is a huge number of other organizations, one way or another related to the activities of countries in the world market.