Regional Currency Research Articles

Денежные знаки Юга России при А.И. Деникине: историографический обзор

The aim of the study is to present a historiographical review and identify the peculiarities of the issue and circulation of Rostov paper money signs of A.I. Denikin. The article examines the issuance of various banknotes in Southern Russia during the Civil War years, predominantly focusing on the Don rubles and Denikin’s currency. It is emphasized that, in comparison with other regional currencies, these notes remained relatively stable due to both their higher quality and a stringent exchange rate tied to the German mark (up until early 1919). Furthermore, A.I. Denikin himself understood the significance of the financial issue and endeavored to address the financial difficulties through various measures. However, scientists cite a number of reasons why a full-fledged solution to this issue could not be found, and Denikin’s money quickly lost value because of the unsecured issue. Scientific novelty of the study lies in the fact that there is currently no separate article addressing Denikin’s banknotes which also includes a historiographical overview on this subject.

The Geoeconomics of Regional Currency Contest: How Bilateral Swap Arrangements of India and Japan Counter the Rise of RMB

ABSTRACT India and Japan are the only two non-dollar issuing countries that have signed dollar-denominated bilateral swap arrangements (BSAs) with foreign central banks. These arrangements indicate that India and Japan are committed to protect their BSA partners’ financial security even at the expense of their own dollar reserves. What has motivated the two countries to make such policy choices? This article argues that India and Japan’s dollar-denominated BSAs not only enhance financial security but also limit the recipients’ motivations to look for alternative settlement currencies for trade or investment. Even if the BSAs are not directly aimed to contain China, therefore, this effectively limits the potential expansion of the RMB’s influence and allows India and Japan to maintain their structural power by supporting regional dollar dominance. This article finds, therefore, that India and Japan’s dollar-denominated BSAs serve as a tool in the geoeconomic competition with a rising China in support of the incumbent regional powers.

Сurrent International Situation and Opportunities for Financial Cooperation Between Russia and China

The article analyzes in detail the current international situation and possibilities of financial cooperation between Russia and China in the new normal functioning of the world economy. As a result, of the reorientation of Russian foreign trade, the share of the yuan in international trade calculations, domestic and international trade operations of Russia continues to grow. Under these conditions the question of how the Russian economy can get a steady, safe and affordable flow of capital to promote economic structural reforms and optimize the placement of debt currency, as well as how Russian enterprises and financial institutions can get yuan liquidity into their own hands, is becoming an important element of Chinese- Russian financial cooperation in the near future. In the future, Chinese-Russian financial cooperation may continue in the following directions: speedup of the connection of the Chinese payment system CIPS with the Russian SPFS, the creation of an offshore conversion center in yuan in Russia, assistance to the capital management agencies and investment banks of the two countries in conducting preliminary research to enter each other's capital markets, speedup of the construction of a regional currency system through multilateral cooperation mechanisms such as the SCO and BRICS.

Comparing and Contrasting ECOWAS and SADC: Successes, Failures, and Challenges.

The overall goal of the African Union in relation to regional integration is the attainment of the Africa Economic Community in which the identified eight regional economic blocs have been tasked to fast-track this aspiration as highlighted in the Abuja Treaty of 1991. This study undertakes a desk review to compare and contrast two regional blocs—ECOWAS and SADC. This is done by looking at the successes, failures and challenges faced by each of the regions. The study found that both ECOWAS and SADC have made indelible progress in ensuring peace and security in their regions and the attainment of some important regional integration landmarks such as the free trade area, free movement of people, and trans-national roads. On the contrary, these RECs have failed to ultimately achieve their integration goals. Both ECOWAS and SADC have failed to implement the customs union and a single regional currency. There are however several challenges faced by these RECs such as multiple membership, lack of political will to implement regional integration programs, and the pursuit of over-ambitious regional integration goals. Therefore, it is recommended that both ECOWAS and SADC undertake comprehensive effort to ensure that realist regional integrations goals are set with the needed political vigor to achieve them. Without which many regional integration programs will continue being stuck and never attained.

Wavelet-Based Analysis of the Comovement Between Exchange Rate and Stock Returns in Sacu Countries

ABSTRACT: The Southern African Customs Union is the oldest customs union in the world and the member states form a currency union with the South African Rand being the regional currency anchor. Therefore, currency movements amongst SACU member are dependent on the developments on the Rand which, in turn, can affect stock market development in the region. We examine the time-frequency relationship between exchange rates and stock market returns in SACU countries using continuous wavelet transforms. Our empirical analysis is two-staged. Firstly, we employ wavelet power spectrum to examine the time-frequency properties of the individual series. Secondly, we use wavelet coherence analysis and phase dynamics to examine the synchronization between the variables in a time-frequency space. Our findings show stronger (weaker) exchange rate-stock returns relations are found during periods of higher (lower) inflation whereas we observe a stronger (weaker) relationship during periods of lower interest rate environment. Moreover, we find more significant long-run relationships for countries with more independent monetary policy (South Africa and Botswana) whereas these relations are more prominent over the short-run for countries with pegged exchange rates (Eswatini and Namibia). We also observe that periods of oil and currency shocks impact the exchange rate-stock returns relationship in SACU countries with pegged exchange rates (Eswatini and Namibia). Our findings bear important implications for different stakeholders. For instance, this study has implications for exchange rate policy as it addresses the issue of whether the exchange rate can be used to improve market performance or exchange rate developments spillover into the stock market. Furthermore, corporate managers and stock market participants would be interested in our findings as it identifies periods of market inefficiency when exchange rates can be used to beat the stock market.

The legal nature of regional currency: theory, history and practice of monetary circulation in selected countries of the world

The subject.The article discusses regional currencies from the point of view of their definition in the system of monetary circulation, purpose, experience in the legal regulation of the circulation of regional currencies in certain territories of various states, the goals and objectives of regional monetary circulation are studied, and the impact of such circulation on the economy of a particular territory is determined. The article reveals the main differences between regional currencies and the national (official) currencies of the state, assesses the overall effectiveness of the development of regional money circulation. The paper analyzes the legal nature of regional currencies, using the example of individual currencies, namely, it raises the question of which legal nature dominates in regional currencies – private law or public law. Methodology. In the course of the study, various general scientific and special scientific methods of cognition were used, the most important of which were methods - historical and legal, comparative historical, comparative legal, as well as the method of referring to other social sciences, such as economics.Main results.In the course of the study, the legal nature of regional currencies was redistributed, using the example of the practice of issuing such currencies in various countries with different periods of historical development.Conclusions.The study found that the introduction of regional currencies into circulation in different periods of time had a variety of purposes. In modern times, these are the goals of protecting the local economy and business from transnational companies and global crises, developing the local economy through greater circulation of funds within a particular territory (from infrastructure development to increasing domestic traffic), reducing capital outflows, developing tourism, and much more. It is also concluded that the legal nature of regional money is not precisely defined. So, on the one hand, the state has a monopoly on the issue of money, and on the other hand, the law protects the freedom to conclude an agreement, which may provide for, among other things, the issue of regional money as a condition for the implementation of the agreement, which is currently used by individual municipalities in various countries of the world.

Prospects of the Russian ruble’s internationalization in the context of sanctions restrictions

The article analyzes the opportunities and prospects of the Russian Ruble’s internationalization in the context of sanctions restrictions. Based on a comprehensive analysis of the stages and factors of currency internationalization, it is concluded that Russia does not possess the overwhelming majority of fundamental factors for the internationalization of its national currency on a global scale. Nevertheless, there are prerequisites for strengthening the Russian ruble as a regional currency. It is found that the ruble can make a significant contribution to the expansion of the volume of settlements in national currencies under trade contracts. The directions of development of infrastructure independent of Western fi nancial centers, capable of increasing the share of settlements in national currencies, are considered. The prospects of creating a common unit of payment in the EAEU space are assessed. A model of the two-contour monetary and fi nancial system of the EAEU is proposed, its institutional framework is defined and formulated. A scheme of foreign trade settlements between counterparties from two diff erent countries is designed within the framework of this model. It is stated that the mutual off set of payments can signifi cantly reduce the needs of countries in real currency of unfriendly countries when carrying out trade exchange. As a result, the pressure on their balance of payments can be eased. Thus, the implementation of the proposed model will preserve national currencies as the main attribute of state fi nancial sovereignty and increase their stability. It can serve as an eff ective means of equalizing the relative level of regional productivity by dividing cash flows. The article concludes that in case of establishment of two-contour monetary and financial system within the framework of the EAEU, Russia will have an opportunity to become its center and increase its geoeconomic and geopolitical potential.

ЄВРОПЕЙСЬКА ВАЛЮТНА СИСТЕМА: ПОЗИТИВНІ ТА НЕГАТИВНІ АСПЕКТИ

The development of the state, first of all, depends on the stability of the national and world currency systems, and their international relations. The functioning of the world economy is based on the establishment of an effective currency and monetary system of relations between states, leading to the strengthening of internationalization processes. One of the examples of the prevalence of internationalization processes is the creation of a single currency system within the European Union (EU). This, in turn, ensures the competitiveness of national economies based on an increase in the volume of production of goods and provision of services, making capital investments in the industry. The creation of the European Monetary System (EMS) means the exchange of goods, services, capital, and labor, as well as the establishment of a single monetary and currency policy, ensuring the economically advantageous positions of the member countries of this association on the world market. Therefore, the question arises of distinguishing the positive and negative aspects of the European monetary system, and its influence on the state of the global economy. The article covers the issue of the peculiarities of the formation of the European monetary system. The main purpose of the study is to analyze the features of currency integration in the European Monetary Union in today's conditions. As a result, the following tasks were set: to investigate the characteristic features of the creation of the EMU; to form the goal of creating a researched regional currency union; highlight the main elements of this European currency integration; to analyze the advantages and disadvantages of the formation of the European Monetary System. The work presents the definition of the concept of "currency system", types of currency systems, and their constituent elements. The positive and negative aspects of the European monetary system are singled out, the stages of the introduction of the European Monetary Union are described, its main institutions and their functions are displayed, and statistical data on the percentage of the US dollar and euro in official currency reserves in the world during 1999–2021 are given.

Механізми створення кризостійкої світової фінансової архітектури

Today, there is a clear need to create a new world financial architecture. In this regard, the key task of the leading countries is to reform the mechanisms for regulating world financial markets and supervising the operations of their participants in order to counter crisis shocks. Therefore, the aim of the article is to identify mechanisms for creating a crisis-resistant world financial architecture (WFA) and to analyze strategic approaches to increasing the stability of the global financial system in the face of modern economic and political challenges. In the course of writing the article, economic and statistical methods of analysis, description, measurement, comparison and observation were used. In the process of the study, general theoretical methods of scientific knowledge were also applied: synthesis, deduction, and induction. The study carried out a retrospective analysis of the world financial crises in order to allocate their main features; identify the most effective strategies for restoring positive trends and the effectiveness of anti-crisis policy under different conditions. An analysis of the current state of the WFA has been carried out and the main crisis processes of today have been defined. In order to develop a new strategy for ensuring a crisis-resistant system, a systematization and analysis of existing modern mechanisms for the prevention of financial crises has been carried out. As a result, the following are allocated: the monetary path; regulatory (infrastructural) approach; the use of a new world reserve currency instead of the US dollar; introduction of a regional currency with the possibility of using different underlying assets and transition to the currencies of individual countries. The results of the study were the identification of priority strategic steps and the development of recommendations for achieving the sustainability of the world financial architecture: compliance with the principles of counter-cyclical fiscal management; prudence in the implementation of monetary policy; the need to strengthen regulatory and supervisory control; timely detection of imbalances arising in financial markets; clear risk management and proper international cooperation. Prospects for further research in this direction can be: study of the impact of regional initiatives on the world financial architecture and the possibility of their use to reduce the vulnerability of the world economy to financial crises; development of innovative financial instruments and their importance for the WFA.

Creating Monetary Collaborative Spaces for Social and Ecological Transformation

Complementary currencies have spread to many places around the world at the beginning of the 21st century. Creating sustainable economic cycles and short transport routes are often the goals of introducing them. Due to their manageability, regional currencies can be embedded in debates of regional economics and sustainability. Above all, they are suitable for democratic experiments that can show in real environments whether currency designs work as examples of collaborative communities and research. One of these monetary experiments is the climate bonus, which is linked to the local currency Chiemgauer. The research path goes into the daily routine of a real laboratory to find out which methods would be effective enough to deliver carbon savings. The climate bonus creates a monetary network where people can try out new behaviors in a protected space. As a result, three years after the initiation of the project, carbon reductions are above expectations.

The Impact of International Currency and Financial Integration on the Countries Economic Development: European Experience

In the article, the author makes an attempt to identify economic effects for the countries participating in the currency union based on a detailed analysis of the studies of foreign economists. The world experience in the formation of currency unions is diverse, there are more than 100 integration associations in the world, which are characterized by their heterogeneity and uniqueness. However, of all regional unions, only the European Union has achieved a high level of integration, and the euro has become a full-fledged regional currency. Thus, most of the studies within the framework of this topic are devoted to the experience of the development of the eurozone. Most empirical studies reveal positive effects from the introduction of a single currency in the form of increased trade flows and incomes, reduced inflation and exchange rate volatility. On the other hand, other studies argue that a monetary union does not have a positive impact on the level of development of the national economy, but rather increases macroeconomic volatility in the participating countries. As a result of the study, the author's interpretation of the benefits and costs of the country's entry into international monetary and financial integration relations is given. It is concluded that the effects of the intensification of economic integration are different for each period of time and for a particular regional association. The validity of the conclusions was carried out on the basis of general scientific methods: monographic survey, analytical and systematic approaches, comparative and historical-logical analyzes, methods of induction and deduction. Key words: monetary union, economic integration, single currency. &nbsp

Is the Renminbi a Global Currency? An Evaluation Based on Offshore Foreign Exchange Market Trading Patterns

This article provides a new framework to evaluate the status of Renminbi internationalization. It proposes that the trading patterns of a currency in the global foreign exchange market embody the currency’s position in the international monetary system. Based on foreign exchange trading data provided by CLS Group, the article constructs a ranking of major international currencies including the Renminbi. It finds that the Renminbi shares more similarities in foreign exchange trading patterns with the established global currencies like the US dollar and the Euro than with those regional currencies. The article also explores the policy implications that the new evaluation approach provides.

An Equilibrium Model of the International Price System

What explains the central role of the dollar in world trade? Will the US currency retain its dominant status in the future? This paper develops a quantitative general equilibrium framework with endogenous currency choice that can address these questions. Complementarities in price setting and input-output linkages across firms generate complementarities in currency choice making exporters coordinate on the same currency of invoicing. The dollar is more likely to play this role because of the large size of the US economy, a widespread peg to the dollar, and the history dependence in currency choice. Calibrated using the world input-output tables and exchange rate moments, the model can successfully replicate the key empirical facts about the use of currencies at the global level, across countries, and over time. According to the counterfactual analysis, the peg to the dollar in other economies ensures that the US currency is unlikely to lose its global status because of the falling US share in the world economy, but can be replaced by the renminbi in case of a negative shock in the US economy. If the peg is abandoned, the world is likely to move to a new equilibrium with multiple regional currencies. (JEL D21, E31, E42, F14, F31, F33)

Internationalization of Renminbi as a Function of China’s Foreign Exchange Policy

This article discusses the prospects of the Chinese renminbi (RMB) to expand its sphere of influence and become a full-scale reserve world currency. The methods used in the article are retrospective analysis and graphic analysis. The work is divided into three sections. The first section provides a broad overview of modern reserve currencies. The second part characterizes RMBs shaping as a reserve currency, as well as inner and outer factors that influence its status. The third section includes information about RMBs current status and its perspectives for being a reserve currency in the future. The article argues that currently RMB has already become a regional reserve currency in Asia-Pacific. Chinese government continues to make steps towards international expansion of RMB, yet these steps cannot make RMB one of the leading world currencies together with USD and EUR in the nearest decade.

The rise of Renminbi in Asia: Evidence from Network Analysis and SWIFT dataset

The rise of Renminbi (RMB) is one of the significant changes of the international monetary system since the 2008 global financial crisis. Through its economic influence in trade and direct investment, China has promoted the international use of RMB in both the global market and the regional market of East Asia. This paper documents the progress of RMB internationalization with the settlement currency information from the SWIFT dataset. Specifically, we conduct a network analysis to study the spillover effects among USD, EUR, GBP, JPY and RMB. From October 2010 to February 2018, the influence of RMB is found to be minimal in the global market, but dominant within ASEAN+3, especially for transactions related with real economy. These results indicate that RMB has become an influential regional currency, but it remains far from a truly international currency with global prominence.

Legal potential of international financial organizations on the introduction of monetary and financial digitalization

The article is devoted to the legal aspects of the activities of international organizations on the implementation of digitalization in the sphere of the monetary and financial system at the domestic and global levels. The purpose of this work is to study a new financial system that is based on the digitalization of the money supply of the world and regional currencies and on their interaction with national currencies. The novelty of the topic of this article is that the digitalization of the monetary and financial system is a new topic today, even for financiers and economists (both scientists and practitioners). The topic of international legal regulation of the processes of digitalization of the monetary and financial system is practically not studied in the science of international law of both the CIS countries and the Western states. The relevance of this topic is predetermined by the course of development of the scientific and technological revolution, which brings digitalization in the economy, production, trade, finance, and currency to the fore. The essence of the article is that the author makes proposals for introduction of digitalization in the monetary and financial system of each state, for introduction of digitalization in the monetary and financial system of each international regional bank. The author of the article also suggests that the SDR of the International Monetary Fund should become the world’s digitalized currency. SDR refers to Special Drawing Rights (Special Drawing Rights), which is issued by the International Monetary Fund as a reserve and means of payment. Based on the current trends in the development of monetary and financial digitalization, this work combines various scientific research methods: the method of empirical analysis, the method of comparative legal analysis, the method of logical analysis, as well as the method of scientific forecasting. The scientific significance of this work lies in the fact that it makes a certain theoretical contribution to solving the problems of introducing monetary and financial digitalization into the currency system at the national and international levels. The practical significance of digitalization lies in the multiple acceleration of the turnover of financial resources within states and in the world, in the introduction of transparency of all financial transactions, in a sharp decrease in the level of monetary and financial fraud and corruption actions. Keywords: financial digitalization, cryptocurrency, the right of fiat currency, currency law, cybersecurity, the right of currency transformation.

Common Currency Area in GCC Region: An Application of Euro Model

US Dollar (USD) is the most dominant currency encompassing 59.54% of the world reserve currency. Euro is the second one, which holds 20.57% share of world reserve currency. The recent studies reveal that the USD might not be the dominant world reserve currency in the future. Euro as a common regional currency is the only competitor of USD, which shows the strength of a unified regional currency. In 1981, the six rich oil states formed Gulf Cooperative Council (GCC); the countries include the Kingdom of Saudi Arabia, the State of Qatar, the Sultanate of Oman, the Kingdom of Bahrain, the State of Kuwait, and the United Arab Emirates. This establishment of GCC signifies the close cultural, economic and political link between the GCC countries. GCC countries have almost all essential ingredients required to establish a common currency area or monetary union. The researcher applied the European Monetary Union (EMU) model to GCC states to find out the feasibility of a common currency or monetary union between GCC states. Currently, EMU is the only example of successful implementation of common regional currency founded on Mundell’s theory of Optimum Currency Area (OCA). The results obtained indicate that all the GCC states successfully fulfill the Euro criteria which are also called Maastricht criteria. The research has established that GCC countries are ripe for establishing a monetary union, especially if they follow the steps of EMU.

Research and Study to explore the potential of the regional currency for co-creation and re-vitalization of the western Kamitsuke region of Gunma prefecture

Research and Study to explore the potential of the regional currency for co-creation and re-vitalization of the western Kamitsuke region of Gunma prefecture

Eaeu common regional currency

The operation and development of the economies of the EAEU countries is subject to the influence of external economic factors, while the single currency will eliminate the risks associated with the restriction of the use of the dollar due to sanctions and will reduce transaction costs. The article offers an approach for the formation of a single internal currency within the EAEU that is based on the following key provisions: firstly, in modern conditions, the role of digital financial assets (and, consequently, cryptocurrency) is gaining importance in economic regional interaction; secondly, the Russian Federation and the Republic of Kazakhstan have not fully legitimized digital financial assets, but partially recognize them, while preserving the resource-specific nature of the financial and economic sphere; thirdly, the global trend for the demand for an alternative type of money should be considered. The proposed approach is addressed to small regional economic and political associations, which makes it possible to fairly quickly consider current and future changes in pricing of one unit of currency. In addition, the proposed approach can be scaled based on the growing influence of the previous and new members of the regional economic association.

Regional Currency Overvaluation and Local Government Debt

Regional Currency Overvaluation and Local Government Debt