What does the international monetary system include
1. The comparison of currencies of various countries, that is, the determination of exchange rates
2. The convertibility of currencies of various countries and the measures taken for international payments, including regulations on whether current accounts and capital financial items are controlled or not, and regulations on international settlement principles
3. Adjustment of the balance of payments
4. Determination of international reserve assets
5. Is the flow and transfer of gold and foreign exchange free?
The exchange rate level of a country's currency, international balance of payments, etc. cannot be determined by a country alone, but are the result of the economic interaction of various countries. Especially in today's world of international economic globalization, without the existence of an international monetary system, it will be difficult to coordinate the economic policies of various countries. It will be difficult to adjust the monetary policies of various countries and balance the international balance of payments, which will seriously affect the normal foreign economic exchanges and activities of various countries. The stability and development of the domestic economy will also intensify the turmoil in the international financial field, which is not conducive to the development of the world economy.
If you have other legal questions, you can consult a lawyer on the Legal Savior Network online.
