FINANCIAL CRISIS AND CURRENCY MOVEMENT

Abstract

The focus of this paper is the exchange rate and foreign exchange policy as a segment of economic policy and the economic system of the national economy. Developing basic approaches to determining the exchange rate, factors influencing the change in the exchange rate arising from the perception of the importance of the foreign exchange system as part of the economic system that should provide conditions for rational inclusion of the national economy. Fluctuations in economic activity are immediately reflected in the value of currencies and changes in the national economy are quickly transferred to those economies with which it has foreign exchange relations. The formation and maintenance of exchange rates depends on a wide range of factors and relationships in each. national economies, regional and international. Therefore, the issues of formation and maintenance of exchange rates and their application in practice are one of the most subtle and complicated issues in modern economies. The exchange rate is defined as the price of foreign exchange foreign currency and domestic currency values. The need to determine currencies and exchange rates stems from the fact that in some national economies, as a result of the existence of currency and foreign exchange regulations in these countries, national currencies are emerging that are, regardless of their quality, definitive and legal means. payments in a specific currency.areas. The moment a country's currency crosses the country's borders, when it leaves its currency area it ceases to be a direct bearer of purchasing power because within other currency areas there are other well-defined currencies that are the definitive and legal means of payment, settlement and payment. power in the country. The exchange of domestic currency with the currencies of other countries is done through the exchange rate