Clearing currencies - settlement currency units that exist only in an ideal (counting) form in the form of accounting records of banking transactions for the mutual supply of goods and the provision of services by countries participating in the payment agreement.
Foreign exchange transactions between participants in the foreign exchange market are impossible without the exchange of currencies and the determination of its proportions. Under exchange one currency for another is understood to be the purchase and sale of foreign currency for national or other currencies. Currency exchange ratios are called exchange rate, it is set through a currency quote.
The exchange rate is formed mainly under the influence of the ratio of supply and demand of currency, determined in the long term by the state of the trade balance. Interest rates play an important role in the ratio of supply and demand, since they always strive for the most profitable investment of capital and invest it where interest rates are higher. Currencies with limited supply rise, while oversupplied currencies fall.
The state and development of the balance of payments has a great influence on the formation of the exchange rate. The balance of payments is determined mainly by the ratio of exports and imports, however, the movement of capital and the exchange of services play an increasing role, which reinforce certain trends in the imbalance of the trade balance.
The economic policy of the state has an undoubted impact on the formation of exchange rates, especially short-term.
Foreign exchange rates are expressed in different ways in different countries. In international practice, it is customary to give a quote with an accuracy of four decimal places. The most common method for determining the exchange rate (quote) of currencies is direct quotation(PC). In this case, a certain fixed amount of foreign currency (1, 100, 1000, ...) is equated to the changing amount of the national one, that is, a fixed number of units of foreign money is expressed in local monetary units. For example, the Swiss franc exchange rate of 72.5505 for Dutch guilders means that for 100 guilders they give 72.5505 Swiss francs.
Direct quotation is accepted all over the world, but in England it is practiced reverse (indirect) quotation(OK), when it is indicated how many monetary units of foreign currency are in a fixed amount of the national currency. This is because until 1971 there was no decimal system in the UK, so the reverse system was easier to use in practice. It was retained after the introduction of the decimal system. The quotation is as follows: 1 pound sterling for 1.5215 am. dollars. In addition to Great Britain, reverse quotation is partially used in the internal circulation of the United States. However, in their international practice, US banks use the European direct quotation method.
If there is no information you are interested in in the foreign currency exchange rate bulletin, you should use the cross rate.
Cross course is obtained by calculation as the ratio of two currencies, which follows from their rate in relation to any third currency (for example, to the US dollar).
¨ You want to determine the rate: Deutsche mark / Swiss franc based on the average rates: US dollar / Deutsche mark and US dollar / Swiss franc. The result is obtained by drawing up the so-called "chain" equation:
X Swiss. fr. = 1000 German. stamps ( DM)
2.0215 German marks = US $ 1 ( USD)
US $ 1 = CHF 1.8685 fr. ( SF)
Then: 100 mute. stamps = Swiss. franc.¨
Exchange rates also differ depending on whether the currency is being bought or sold.
By buyer's rate(bid) the bank purchases the currency. For example, the buyer's rate USD / DM 2.6650 means that the bank is ready to buy dollars from the client at the price of 2.6650 DM for 1 USD. Thus, a certain amount of national currency (DM) is offered for a unit of foreign currency (USD), which changes from day to day.
By seller's rate the bank sells currency (offered). For example, the seller rate USD / DM 2.6670 means that the bank is ready to sell dollars to the client at the price of 2.6670 DM for 1 dollar.
¨ 1 USD = 6.0000 - 6.0020 denominated rubles, i.e. the Russian bank is ready to buy a dollar from a client at the rate of 6.0000 and simultaneously sell at 6.0020 rubles. per US dollar.¨
The difference between the courses is called margin, it serves to cover the costs of the bank and is the profit of banks on foreign exchange transactions. There is no definite amount of this difference. Usually the margin is 5, 10, 20 points, or pips (points or pips), so the third and fourth decimal places are called; the first three digits, called the "big figure", remain, as a rule, unchanged.
For example, USD / DM 6650 is 2.6670. Here 2.66 is a big figure, 50 - 70 is "points", or "pips"; the margin in this case will be 20 points.
For each specific foreign exchange transaction, the margin depends on the time and place of the transaction. In times of crisis, margins are significantly higher than usual. The value of the margin is also determined by the market turnover: the smaller it is, the higher the difference between the rates of the seller and the buyer, and vice versa. The margin may also depend on the client's solvency: the higher the latter, the lower the margin.
The specific currency of the transaction also has a certain impact. The margin is significantly lower for currencies with a high volume of transactions, for example, the US dollar, the pound sterling, the deutsche mark, the Swiss franc. In recent decades, the gap between buy and sell rates for major currencies has narrowed. The costs of carrying out currency trading decreased as a result of the introduction of computer technology and a significant increase in the turnover of this trade. Competition in this area has also intensified. Further decrease in the margin is limited by the amount of costs. If currency trading does not cover the costs of any bank, he still does not refuse it, since clients can turn to competing banks for other operations. The profit of commercial banks from currency trading is formed not only due to the margin and the size of the turnover, but also due to significant own operations.
Taking advantage of retail prices quickly in various markets has come to be known as "arbitrage." Its essence is to buy cheaper in one place and more expensive to sell in another.
Exists currency arbitration based on the difference in rates and equalization arbitration. In the first case, the arbitrageur (dealer) tries to buy currency as cheaply as possible in one place where the rate is higher (the dealer immediately concludes mutually compensating transactions, moreover, at the expense of his own funds or the bank's funds). This is differential arbitration in its purest form.
Direct clearing arbitration is the use of exchange differences between the currencies of the debtor and the creditor. The third currency is indirectly involved, which is bought at a very low rate and sold at the place of payment. A large gap in the interest rates of different countries can lead to the fact that the international movement of capital will be determined by the interest rate differential (capital will rush to those countries where there are high interest rates).
See also:
A special type is considered a clearing currency, which in world practice, especially in the countries of Asia and Africa, serves such a form of mutual settlements as currency clearing. Foreign exchange clearing is understood as an intergovernmental agreement on the mutual offset of claims and obligations in foreign currency arising from the value equality of commodity supplies and services rendered. Clearing currency is a special unit of account used in foreign trade on the basis of an intergovernmental agreement between two or more states. The clearing currency is applied in a non-cash form, in the form of accounting records on the accounts of banks of countries that have signed the clearing agreement. The clearing currency can be any. In practice, either the currency of one of the countries participating in the clearing agreement or the currency of a third country is used. In the USSR, clearing currencies were widely used in settlements on foreign trade transactions. On January 1, 1999, the Bank of Russia terminated the official rates of clearing and settlement currencies. For the purposes of accounting, taxation and customs payments on transactions with all clearing and settlement currencies, the official rates of the corresponding base freely convertible currencies, established by the Central Bank of the Russian Federation, were used. The singular type is a fundamental form of clearing and execution. This type of clearing is used, as a rule, when trading real goods. The conclusion of the transaction must be followed by the delivery of the actual product. For example, after the conclusion of the transaction, the buyer of the security transfers cash or its equivalent into a form accessible to the seller. The seller keeps the securities in a form suitable for delivery to the buyer. Then the two parties agree to use some mechanism to exchange the paper for money. Full clearing. The system in which the clearing center acts as an intermediary and guarantees all transactions is typical of modern futures markets. This system is called full clearing. Full clearing systems originate from the 18th century Japanese rice exchanges and 19th century European coffee exchanges and were first adopted in the United States by the Minneapolis Chamber of Commerce (now the Minneapolis Grain Exchange) in 1891. The largest US futures exchange, CBOT, adopted a full clearing system in 1925. Direct settlement. The simplest and oldest form of clearing is direct settlement (settlement), a bilateral settlement of contractual obligations between the parties to a contract. Direct settlement can take place in three ways: 1. Delivery of goods after the expiration of the contract 2. Direct compensation - liquidation of contractual obligations by cash payment. The contract is then re-bought from the original buyer by the seller. The payment in this case is equal to the value of the contract upon signing minus the value of the contract at the time of repurchase. 3. Non-performance of the contract - a situation when, upon the expiration of the contract, one of the parties is unwilling or unable to fulfill its obligations. Settlement under the contract takes place through the courts or in accordance with the rules of this exchange in relation to arbitration. Two important advantages of a full clearing system over direct and round-robin settlement are as follows: 1. Bidders do not have to worry about the identity of their partners. 2. Bidders can liquidate their positions by entering into offsetting transactions without the consent of the original partner and without even informing him. The balance currency is the sum of the asset and the liability of the balance.
Term "currency" applies in three ways:
- Currency- This is the monetary unit of this particular country.
- Currency Are foreign funds and units of account.
- Currency- these are international units of account such as "euro", SDR, etc.
Since the task is to promote development, then any national currency should have external and internal convertibility, that is, the ability to convert into currencies of other states. Convertibility determines the degree of liquidity of a currency in the international financial markets. Thus, currency convertibility characterizes the quality of the currency. Depending on the degree of convertibility, three groups (classes) of currencies can be distinguished.
1. Free convertible currency(SLE). Such currency can be freely and without restrictions exchanged for other foreign currencies, that is, hard currency has full external and internal convertibility.
The sphere of exchange of hard currency applies both to current operations (operations related to the export-import of goods and services) and operations related to the movement of capital, for example, obtaining foreign loans or foreign investments.
Thus, we can say that freely convertible is the currency of the country in which there are no legislative restrictions on the implementation of any transactions with it.
American dollar (USD), British pound sterling (GBF), Swiss franc (CHF), etc. are recognized as freely convertible currencies.
2. Partially convertible currency(PCI). Such currencies include the national currencies of those countries in which currency restrictions are applied to residents, as well as for certain types of exchange transactions. For example, the Russian ruble is partially convertible.
3. Non-convertible (closed) currency(NKV). It is a national currency that functions only within a given country and is not exchanged for foreign currencies.
The category of currency is determined by the International Monetary Fund.
In addition, in international trade, currency units are used that exist only in non-cash form - clearing currencies.
Clearing currencies- These are settlement currency units that exist only in non-cash form and are used only by the countries-parties to the payment agreement when carrying out mutual settlements for delivered goods and services.
In the world economy, there is a concept of reserve currencies.
Reserve currency- these are the national credit and monetary funds of the leading countries - participants in world trade, which are used for international settlements in foreign trade operations and in determining world prices.
Historically, the original role of the reserve currency was played by the British pound sterling. This was natural, because industry and trade were actively developing in England. In addition, England had many colonial possessions where trade was based on the pound sterling. However, subsequently, due to the rapid development of the United States, their national currency (dollar) began to rapidly displace the pound sterling, playing the role of the main reserve currency. The role of the reserve currency (USD) was finally assigned to the US dollar in 1944 at the Bretton Woods conference.
Currently, the US dollar is the main reserve currency in the world. Most of the international settlements are carried out in this currency, world prices for many commodity groups are fixed. In addition, all world statistics are based on USD.
The exchange rate has a great influence on international economic relations. It should be noted that at present the monetary policy of the state can have a great influence on the exchange rate. In order to maintain the national currency, the central bank of any country can conduct foreign exchange interventions.
Foreign exchange intervention- This is the impact on the exchange rate of the national currency by buying or selling a significant amount of foreign currency by government agencies. For example, the Central Bank of Russia (CBR) may sell part of its foreign exchange reserves in the foreign exchange market to strengthen the ruble.
Exchange rate
Currency parity
Money fulfills the measures of value and means of circulation only within the limits of the respective state. Outside of these functions, purchasing power is determined by comparison with foreign currencies, and the external value of money is expressed in terms of foreign currencies. When determining the external value of money, the following problems arise: determination of currency parity by government agencies; formation of rates in foreign exchange markets.
Currency parity- This is the legally established ratio between two currencies, which is the basis of the exchange rate. In modern conditions, currency parity is established on the basis of special drawing rights for SDRs. The SDR is the international collective settlement currency used by IMF member countries.
- the ratio between the monetary units of different countries in terms of their purchasing power to a certain set of goods and services - certifies that in the world market the same product should have the same price in all countries if it is calculated in the same currency. But in the world market, goods are bought and sold for different money, so there must be a certain ratio between currencies. This ratio is expressed by the Kessel formula:
For example, 1 dollar = 1.5 euros, or 1 euro = 0.75 dollars, which means the ability to buy the same amount of useful products for both 1 dollar and 1.5 euros.
Both parities are used in setting the official exchange rates.
Exchange rate is called the ratio between two currencies or is it the price of one currency expressed through another currency.
The nominal exchange rate is the actual price of one currency in terms of another currency. For example, the price of 1 US dollar on the Russian market in January 2002 was equal to 30 rubles, and the price of one ruble was approximately 0.33 US dollars.
There are the following types of exchange rates:
- fixed exchange rate- this is the official relationship between the two currencies, established by law;
- floating- installed at trading on the currency exchange;
- cross course- this is the ratio between two currencies, which follows from their rate in relation to a third currency;
- current- this is the rate of cash, that is, a cash transaction. Calculations are made on it within two days;
- forward or the rate of a forward transaction, is the rate for settlement on a foreign exchange (forward) contract after a certain time after the conclusion of the contract.
The value of a currency is expressed in a price that is determined by the value of the currency in relative units of another currency - national or foreign. The price of foreign currency is called exchange rate.
To designate currencies when concluding transactions, the following applies. ISO-codes of currencies. The individual currency code consists of three letters: the first two letters represent the country, the third - the currency. Examples of ISO codes for some currencies are shown in the table.
Exchange rates are displayed by the pair of currencies involved in the transaction, for example GBP / USD or USD / CHF, where GBP / USD shows how many US dollars are contained in 1 British pound (how many US dollars can be bought for 1 British pound), and USD / CHF shows how many Swiss francs are contained in $ 1 (how many Swiss francs can you buy for $ 1).
The currency that is bought or sold, that is, traded, is called traded currency, and the currency used to evaluate the traded currency is currency quotes... So, when displaying a currency pair, the first of the indicated currencies is the traded currency, and the second is the quote currency.
Usually, when the exchange rate is indicated, the foreign currency acts as the traded currency, and the local currency acts as the quote currency. Such a quote is called straight, or evaluative: the price of a certain amount of foreign currency is expressed in variable national units. Such a quotation system is used, in particular, in Switzerland, Japan, Canada. For example, the quote USD / JPY106.4 shows that there is 106.4 Japanese yen in $ 1.
Indirect (reverse) the rate quote is the price of a standard unit of the local currency expressed in variable foreign currency units.
The system of indirect quotations of their currencies, in particular, is used by the United Kingdom and Australia (GBP / USD and AUD / USD). An indirect quote is also used when calculating the euro exchange rate (EUR / USD).
For example, the quote EUR / USD1.23 shows that 1 euro contains $ 1.23.
In interbank currency trading, the bank that quotes the currency usually gives the buy and sell rates. The buy rate is designated as the Bid rate, the sell rate - Offer (Ask).
With a direct quote, the Bid rate is the rate at which banks buy the traded (foreign) currency and sell the national currency. The Offer (Ask) rate is the rate at which the bank sells the traded currency and buys the national one. The amount by which the Bid rate differs from the Offer (Ask) rate is called spread.
The largest volume of transactions in the foreign exchange market falls on spot transactions. Deals spot all foreign exchange transactions are named, payments for which are made on the second banking day after the conclusion of the transaction. If this day falls on a weekend, then the next working day becomes the due date (value date). The rate at which spot transactions are concluded is called spot rate.
An example of calculating the value date is shown in the table.
Cross course- This is the ratio between two currencies, which is calculated based on their rate in relation to the rate of the third currency. As a rule, when calculating cross rates, the third currency is the US dollar. This is due to the fact that the US dollar is not only the main reserve currency, but also the transaction currency in most foreign exchange transactions.
As an example of using cross rates, you can calculate the EUR / YPJ rate through the EUR / USD and USD / YPJ rates:
Currency quotation
The process of setting the exchange rate is called currency quotation.
Types of quotes:
Depending on the location of the exchange, from the country where the foreign exchange transaction is made, they distinguish:1.direct currency quotation... With it, the value of a unit of foreign currency is expressed in terms of a certain amount of the national currency.
- 1 unit currency = to units. national currency.
- 1 dollar = 31 rubles.
If the transaction takes place in any country;
2.indirect currency quotation... With it, the value of a unit (i.e., 1 piece) of a national monetary unit is expressed in a certain amount of a foreign monetary unit.
- 1 unit of national currency = X units of foreign currency.
- 1 ruble = 1/28 dollars.
The same quote, depending on the country where the transaction is made, may be direct and indirect.
The exchange rate is quoted in two directions:- buyer's rate- in accordance with this rate, the bank will buy foreign currency in exchange for national;
- seller rate- in accordance with this rate, the bank sells foreign currency in exchange for national currency.
With a direct quote, the seller's rate is usually higher than the buyer's rate.
With indirect quotation, the buyer's rate is higher than the seller's rate.
If the quotation of two currencies is carried out by calculation through a third currency, then such a quotation is called a cross rate.
Currency convertibility is the ability to exchange a national currency for a foreign one. It happens:- full convertibility- exchange without restrictions (dollar);
- incomplete convertibility- exchange is limited (ruble).
There are no restrictions on the domestic market (buying foreign currency for rubles).
In relations outside the country, the Central Bank sets restrictions.
International clearing is our response to the US monetary and financial diktat
Clearing- the concept is broad. Clearing is a system of mutual non-cash payments for goods, securities and services rendered, based on accounting for mutual financial claims and debts (obligations). There are different types of clearing: commodity, banking, exchange, currency. We are interested in currency clearing.
In the previous article, we talked about alternatives to the current system of international settlements. We noted that an alternative international settlement system should be based on state currency monopoly (GVM). GVM is a necessary, but not a sufficient condition for an optimal system of international settlements in Russia. It is desirable that this system not only ensure the mobilization and effective use of foreign exchange in the framework of the country's foreign economic activity, but also minimized the country's dependence on the dollar and other reserve currencies, which are somehow controlled. To solve such a problem, you should use a time-tested method - clearing.
Currency clearing: definition, types
Clearing is a broad concept. Clearing is a system of mutual non-cash payments for goods, securities and services rendered, based on accounting for mutual financial claims and debts (obligations). There are different types of clearing: commodity, banking, exchange, currency. For example, bank clearing is a system of interbank non-cash payments carried out through clearing houses and based on mutual offset of equal payments to each other. Bank clearing takes place in almost every country with a developed banking infrastructure. Commodity clearing has signs of countertrades, which we have already had a conversation about before. We are interested in clearing, which provides settlements in the sphere. It is called currency clearing.
Foreign exchange clearing- a system of settlements between participants in foreign trade on the basis of interstate agreements. Those. it becomes mandatory for all exporters and importers of the countries participating in the clearing agreement. As a result of offsetting counterclaims and obligations, a clearing balance arises. An important element of currency clearing is clearing banks, which are engaged in accounting and offsetting of the aforementioned requirements and obligations, and can also provide loans to participants in clearing operations.
In interstate agreements the conditions for the formation of the balance and the methods of its repayment are discussed. The debt limit for the clearing account balance depends on the volume of trade and is usually fixed at the level of 5-10% of its volume, as well as on seasonal fluctuations in commodity supplies (in the case the limit is higher). The agreements determine the type of currency used for repayment, maturity dates, opportunities and methods of crediting the arising debt (balance).
Clearing loan in principle, mutual, but in practice, unilateral lending by countries with an active balance of payments of countries with a passive balance of international settlements prevails. Clearing may provide for free conversion of the balance into cash by the creditor country ( convertible clearing). But this method is rarely used. There may be an option providing for the repayment of the balance not only in money, but also by the supply of goods. This clearing resembles the countertrade mechanism that we have already discussed. If 100% coverage of the balance of goods is provided, then this will already be in its pure form. countertrade.
Depending on the number of participating countries, unilateral, bilateral, multilateral and international clearing are distinguished. In terms of the volume of transactions, there are full clearing, covering up to 95% of the payment turnover, and partial, covering certain transactions.
Experience in using foreign exchange clearing services abroad
The boom in currency clearing fell on the period of the 30-50s of the XX century. The impetus for the development of currency clearing was given by the economic crisis, which began in 1929. As the crisis developed, the system of the gold standard began to collapse, which with great difficulty was restored after. International trade began to curtail. There was not enough currency to pay for vital imports. Hard currency restrictions were introduced.
The reaction to this difficult situation was the emergence of clearing, which allowed to save currency. Relations between participants in foreign trade transactions and clearing banks were built on the basis of the national currency. Those. exporters received national currency into their accounts from clearing banks, while importers, on the contrary, entered national currency into clearing banks. The first clearing agreement was concluded in 1931 between and Hungary. In March 1935, 74 clearing agreements were signed, in 1937 - 169. They covered 12% the volume of international trade.
Clearing houses held a significant portion of international trade during the Second World War. After the Second World War, due to the balance of payments crisis, the "dollar famine", increased inflation and currency restrictions, the depletion of foreign exchange reserves of most Western European countries, the number of bilateral clearing increased from 200 in 1947 to 400 in 1950. 2/3 of turnover between European states. In general, in the system of the world capitalist economy in the mid-1950s. through currency clearing services 50% all international payments.
In the 1950s, many countries began to move towards establishing multilateral clearinghouses. In Western Europe, it was the 17-country European Payments Union (ENP), which was created in June 1950 and lasted until December 1958.The ENP was created on the initiative and with the support that saw this multilateral clearing as a means of quickly overcoming currency restrictions and the creation in Western Europe of a single economic and currency space for a more active penetration of American capital and imposing the dollar on Europe, which received the status of an international currency at the Bretton Woods conference.
Note that the existence of numerous bilateral currency clearing in Europe did not make it possible to fully realize the advantages that the US dollar received at the mentioned conference in 1944. At the expense of funds according to the "Marshall plan" the main capital of the ENP was financed ( 350 million... dollars) and a deficit in the balance of payments of a number of countries ( 189 million... dollars) From June 1950 to July 1954, the United States introduced to the ENP 1050 million... dollars, and then stopped direct capital investment, limiting themselves to providing assistance and paying for military orders. The American representative participated in the ENP Administrative Committee with an advisory vote.
Incidentally, within the framework of the ENP appeared supranational currency... It was an international accounting unit called Epunit... It is noteworthy that this European unit of payment had a gold content equivalent to that of the US dollar (0.888671 g of pure metal). The ENP was created as a regional organization of countries, on the basis of which the European Monetary Union later emerged. The ENP was operated by the Bank for International Settlements (BIS) in Basel.
Within the ENP monthly there was a multilateral offset of all payments of the participating countries with limited crediting of debtors at the expense of countries with a surplus. Initially, based on the results of receipts and payments, the balance of each country was displayed. Then this information was transmitted, and each country entered into credit relations with him. Since the sum of positive and negative balances coincided, as a result, the BIS performed exclusively the role of an agent (intermediary) in multilateral clearing.
At the final stage, the passive and active balances on the clearing accounts of the participating countries were regulated in accordance with quotas. The total amount of quotas in the ENP was more than 4 billion... epunites. Quotas were set depending on the volume of the country's international payment turnover: for Great Britain - 1 billion epunites, France - 520 million, etc.
Unlike the IMF, quotas in the ENP were not paid and served to regulate the balances of countries participating in multilateral clearing. Within their limits, the share of payments in gold and the share of loans that countries with active balances of payments provided to debtors were determined.
The ENP was replaced by European Monetary Agreement (EMU), which also provided for clearing settlements between the participating countries. But if all the requirements and obligations of the participating countries passed through the ENP, then only part mutual settlements, and it steadily decreased, due to the abolition of currency restrictions by most of the countries of Western Europe. The abolition of the ENP gave impetus sharp dollarization European.
Currency clearing in international settlements of the USSR
In the first post-war years, the USSR built settlements with many neighboring countries on the basis of bilateral clearing. Existence in the Soviet Union planned economy and state monopoly in the field of foreign trade and foreign exchange transactions facilitated the organization of clearing settlements.
By the way, such clearing agreements "pulled up" our neighbors to the understanding that a condition for successful trade and economic cooperation is the organization planned economy and state monopoly in the field of foreign economic activity. Of course, there has always been some kind of clearing balance, but its repayment was carried out mainly not in gold or currency, but in commodity deliveries. That is, the clearing of the 1940s. showed signs of countertrade. Clearing in fact, they were an integral part of bilateral trade agreements between and states, which in those years were called "countries of democracy" (socialist countries of Eastern Europe). At first, these agreements were concluded for one year, and then they began to be concluded for 3-5 years.
In 1949-1951. a large number of trilateral clearing operations with the participation of the USSR appeared. One of the modifications of such clearing was the transfer of the account balance from one two-way clearing to the account of another two-way clearing (naturally, on the basis of a tripartite agreement between the USSR and two other countries). Then, agreements began to appear, which initially provided for the organization of three-party clearing settlements. In various combinations, the USSR concluded such agreements with Poland, Czechoslovakia, Bulgaria and Finland.
Clearing ruble in settlements between the CMEA countries, from January 1, 1964, it was replaced by a transferable ruble. But the clearing ruble did not disappear; it continued to be used in settlements with the DPRK. Moreover, in the 1970s. bilateral currency clearing was in place USSR-Finland, in which the currency was the same clearing ruble. We traded with a capitalist country without using the American dollar or other freely convertible currencies. This precedent was very annoying for our geopolitical enemy -.
I must say that the USSR used clearing settlements to ensure trade also with countries that were not members CMEA or were not even part of the socialist camp. Other clearing currencies were used there. First of all, these are the countries of the "third world". For example, there was a two-way clearing with India, the clearing currency was the Indian rupee. A similar agreement was concluded with Pakistan, the clearing currency was the Pakistani rupee.
By the way, a number of other socialist countries traded with India and Pakistan, using clearing settlements with the help of Indian and Pakistani rupees. Yugoslavia among the socialist countries it occupied a special place. She was not a member of the CMEA, did not join the agreement on the use of the transferable ruble, had a fairly pronounced economic orientation towards. The Soviet Union with Yugoslavia in the 1970s. trade and economic relations were based on clearing settlements, and the currency was U.S. dollar... Our relationship with China... Nevertheless, our countries entered into an agreement on clearing settlements, in which the clearing currency was Swiss frank.
Federal Reserve: "class hatred" of international clearing
Following the example of the USSR and other socialist countries, clearing agreements were concluded among themselves by many Third World countries. It should be borne in mind that clearing settlements in the post-war decades were an important way for socialist and developing countries to save reserve currencies, primarily the US dollar. Along with such methods as barter trade and "compensation transactions" (an example of a "compensation transaction" is the pipe-gas agreement, which the Soviet Union concluded with a number of Western European countries in the late 1970s).
Such forms of international cooperation made it difficult to carry out economic sanctions against the USSR and its partners. After all, cooperation did without dollar payments, which always go through the US banking system, and which Washington can easily block. In addition, clearing settlements of this kind and other currency-saving schemes sharply reduced the demand from participants in transactions for US dollars. But this strongly hit the interests of the owners of the Federal Reserve System, who "printed" these same dollars and received from each "Green paper" big share premium.
In the 1970s. USA unilaterally renounced their obligations to exchange dollars for gold, in fact dismantled the post-war Bretton Woods system. Thereby was removed the "golden brake" from the "printing press" of the FRS. But that was not enough. It was also necessary to create a demand for "green paper" - the products of the "printing press". Clearing agreements - both bilateral and multilateral - thwarted the expansion of the US dollar.
After the victory USA in the cold war began active globalization and economic liberalization around the world. In the 1990s. under the onslaught of the United States and the IMF, international clearing agreements began to be dismantled, countries in a "voluntary-compulsory" manner began to switch to direct payments in US dollars. Clearing proved to be incompatible with the interests and goals of global dollarization.
Clearing settlements as our response to economic sanctions
Today Russia is trying to restore its economic positions in the world. One of the important directions is the creation of integration alliances with neighboring countries. By the way, about two decades ago, in 1994, Russia and a number of other neighboring countries concluded an agreement on the creation CIS Payment Union... In fact, it was about the creation of multilateral clearing. Unfortunately, the agreement turned out to be "stillborn", only specialists remember it today. Probably, then there were not sufficient political and economic conditions for the creation of the Payment Union.
Today in the context of tougher economic sanctions against Russia, integration with neighboring countries becomes extremely urgent. Steps are being taken to create a Customs Union. However, unfortunately, the steps are very timid. One of the factors hindering the development of trade and economic relations between the CIS countries is the imbalance of their mutual trade, as well as the high share of the dollar and the euro in mutual settlements.
The obvious steps to remedy this abnormal situation suggest themselves. First of all, it is obvious that there is a need to conclude trade agreements between countries with approximate volumes of exports and imports, and preferably not for a year, but for a longer perspective. But the implementation of such a measure is possible only if the economy is run on a planned basis and the existence state monopoly of foreign trade... Or, at least, strict state regulation of the sphere of foreign trade exchange.
Probably, the time is ripe recovery Ministry of Foreign Trade, which were destroyed in the heat of "democratic reforms", as a reminder of the state monopoly of foreign trade. And after such preparatory work, you can and even need to return to a well-proven practice. currency clearing... To begin with, at least two-way clearing. It is desirable that they be "pegged" not to the dollar or euro, but to the national currencies of the countries participating in the clearing agreements. And in the longer term, it would be possible to switch to a multilateral settlement system using a supranational regional currency of the type "Transferable ruble".
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State interference in the sphere of international settlements is manifested in the periodic use of currency clearing - agreements between the government of two or more countries on the mandatory offset of international requirements and obligations. Foreign exchange clearing is different from domestic interbank clearing. First, offsets for internal clearing between banks are made on a voluntary basis, and for foreign exchange clearing is mandatory: if there is a clearing agreement between countries, exporters and importers have no right to evade clearing settlements. Secondly, under internal clearing, the offset balance is immediately converted into cash, and with currency clearing, the problem of balancing the balance arises.
The objectives of currency clearing are different depending on the country's monetary and economic situation:
equalization of the balance of payments without spending gold and foreign exchange reserves;
obtaining a soft loan from a counterparty with an active balance of payments;
a retaliatory measure to discriminatory actions of another state (for example, the UK introduced clearing in response to the termination of payments by Germany to British creditors in the 1930s);
non-repayable financing by a country with an active balance of payments of a country with a passive balance of payments.
A characteristic feature of currency clearing is the replacement of foreign exchange turnover with foreign settlements in national currency with clearing banks, which carry out the final offset of mutual claims and obligations. Clearing is the main, but not the only type of payment agreement. Payment agreements between states regulate various issues of international settlements, in particular, the procedure for using foreign exchange earnings, the state of the balance of payments and its individual items, the mutual provision of currencies for current payments, the regime of limited convertibility of currencies, etc.
Clearing forms are varied and can be classified according to the following main features:
depending on the number of participating countries, unilateral, bilateral, multilateral and international clearing are distinguished. Unilateral clearing is not viable. This is evidenced by the experience of Italy, which introduced unilateral clearing in relation to Great Britain in the early 1930s. As a result, Italian exporters preferred to receive pounds sterling without going through the clearing account, and importers preferred clearing settlements, depositing lira into their bank and freeing themselves from the need to buy British currency. As a result, a large unilateral debt of the Bank of Italy to the British was formed. Bilateral clearing is more common, in which accounts are maintained in both countries. At the same time, the forms of settlement accepted in international practice (collection, letter of credit, transfer, etc.) are used, but importers deposit national currency into their bank, and exporters receive national currency in exchange for foreign exchange earnings. Set-off of mutual claims and obligations is carried out by banks maintaining clearing accounts. Multilateral clearing includes three or more countries. The ENP is an example. International clearing has not been established, although its draft was developed by J.M. Keynes in 1943;
in terms of the volume of transactions, there are full clearing, covering up to 95% of the payment turnover, and partial, covering certain transactions;
according to the method of regulating the balance of the clearing account, clearing differs:
with a freely convertible balance;
with a conditional conversion, for example, after a certain period after the formation of the balance;
non-convertible, balances which cannot be exchanged for foreign currency and are repaid mainly by commodity deliveries.
The clearing currency can be any. Sometimes two currencies or an international accounting unit are used. From an economic point of view, it makes no difference in what currency the clearing is carried out if one currency is used. In settlements through currency clearing, money acts as a measure of value and a means of payment. With mutual offset of claims without creating a balance, money appears as ideal. In clearing settlements, two categories arise - foreign exchange risk, freezing of foreign exchange earnings in case of non-convertible clearing, and losses in case of rate changes. The volume of trade and clearing almost never coincides. Various combinations are possible depending on the type of clearing. In case of partial clearing, the trade turnover exceeds the volume of clearing settlements; in case of full clearing, on the contrary, since current and financial transactions of the balance of payments, including transactions with securities, are cleared.
Foreign exchange clearing has a twofold effect on foreign trade. On the one hand, they mitigate the negative effects of foreign exchange restrictions by enabling exporters to use foreign exchange earnings. On the other hand, in this case, it is necessary to regulate foreign trade turnover with each country separately, and foreign exchange earnings can be used only in the country with which a clearing agreement has been concluded. Therefore, for exporters, foreign exchange clearing is not profitable. Moreover, instead of proceeds in convertible currency, they receive the national currency. Therefore, exporters are looking for ways to circumvent currency clearing. These include: price manipulation in the form of understating the contract price in the invoice (double contract) so that part of the foreign exchange earnings would go to the exporter's free disposal, bypassing the foreign exchange control authorities; shipment of goods to countries with which a clearing agreement has not been concluded; lending to a foreign buyer for a period calculated for the termination of the clearing agreement.
Multilateral currency clearing differs from bilateral in that the offset of mutual claims and obligations and the balancing of international payments are carried out between all countries covered by the clearing agreement.
