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Finance and Credit
 

Transformation of economic conditions for modern world currencies formation

Vol. 21, Iss. 38, OCTOBER 2015

PDF  Article PDF Version

Received: 23 June 2015

Accepted: 6 July 2015

Available online: 23 October 2015

Subject Heading: WORLD MONETARY SYSTEM

JEL Classification: 

Pages: 55-66

Kudryashova I.V. Volgograd State University, Volgograd, Russian Federation
inna.kudrjaschowa@yandex.ru

Importance Over 12 years have passed since the Russian President set a challenge to enhance the international status of the Russian ruble. Despite the increased share of the national currency as an international settlement currency, the achieved result is insignificant as compared to the global foreign exchange turnover. Therefore, during the gradual progress of the Russian ruble towards the international currency status, it is important to study the economic conditions for modern world currencies formation.
     Objectives The objectives are to study the transformation of economic conditions and to show their role in the process of internationalization of monetary functions of modern world currencies.
     Methods The study draws on research techniques like historical synthesis, comparative analysis, statistical methods (tabular, graphical, a method of absolute and relative indicators).
     Results I examined the role of the country's GDP and its share in the world product, the importance of the volume of exports of goods and services, the country's share in the world export, the volume and depth of the domestic financial market, the size and structure of international reserves, inflation rate in the country of issue, the lack of acute fluctuations of the exchange rate of pound sterling, US dollar, Japanese yen, and Euro in the process of achieving the international status.
     Conclusions Internationalization of monetary functions of modern world currencies was preceded by the formation of economic conditions that provided a large-scale and stable international demand for these currencies and supported their stability.

Keywords: world currency, international reserves, financial market, exchange rate, inflation

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