International Finance 2104-L-W6FIMI

The actors and the subject of international financial relations. Evolution of the international currency system. The gold standard system, dollar – gold system, the modern system of multicurrency. Foreign exchange and its types. Functions and types of exchange rate. The policy of exchange rates. The mechanism of devaluation and revaluation. Modern international foreign exchange market and its structure. Types of transactions: traditional, futures contracts, speculation in foreign exchange. International money and capital markets: domestic and off-shore. The instruments of the money market and the capital market. International credit market: types and classification of international credits. Coordination of the states’ currency and financial policies. Cooperation of central banks. Currency integration of the European Union. The role and significance of the International Monetary Fund and the World Bank Group. The significance of commercial banks in International Financial Relations: conducting transactions and financing foreign trade. The significance of the balance of payments in the financial relations of a state with foreign countries. The policy of equilibrium in the balance of payment.