Gaponjuk O. Current world currency system: makeover of distribution of official foreign exchange reserves

Abstract

The modern global currency system is characterized by presence of certain features appeared on the ground of certain economic and political changes in world economy. Certainly, the basic signs of the modern world currency system are follows: 1) it was created and operates on the basis of norms of international law; 2) aims of activity are prevention of currency crises and assistance in case any crisis appears 3) objects of adjusting is a currency and currency values; 4) presences of international mechanism of the legal adjusting; 5) has legal public character, but acts on behalf  of states and private persons; 6) simultaneously combines the element of supernational and private law adjusting. One of the basic conditions for functioning of the modern world currency is a presence official foreign reserves. Currency reserve executes definite functions in the system of international financial relations: provides international liquidity of country; stabilizes cost of reserve; realizesaims of currency exchange policy by mean of currency interventions at the market. Taking into account the functional aims, there are certain demands to the currency reserve as: the country-issuer of this currency must occupy leading positions in the international economy; to apply liberal national currency legislation; currency reserve must be actively used in operations realizing by international financial institutions (commercial and official). The necessity of providing of international liquidity requires currency exchange stability - its unforeseeable depreciation results on depreciation of currency reserves and creates a threat to currency stability both on the national and on global levels of world currency