World Currency Research Articles

ЕКОНОМІКА НАДЛИШКУ ГРОШЕЙ

The article is devoted to the formation of an economy in which there is a relative surplus of money. Excess money is seen as a consequence of the policy of quantitative easing, which was carried out by the central banks of developed countries. Peculiarities of growth in the ratio of money supply and gross domestic product for individual countries have been studied. It is shown that financing the reconstruction of Ukraine corresponds to the own economic interests of the donor countries, as it will help to correct certain systemic imbalances of monetary circulation in their economies. This imbalance is embodied in a relative surplus of money. This surplus is of a different nature than that implied by the quantity theory of money. From the point of view of behavioral economics, money is a tool for motivating the subject to action (or, when necessary, inaction). Stimulation of activity, in particular, entrepreneurial activity, due to the opportunity to get more money is a characteristic feature of the capitalist economy. Considering that the value of money is important not in itself, but in relation to what it is used for, we can imagine that the creeping inflation of even the most seemingly basic and solid world currencies (the US dollar, the British pound, the euro) is evidence of a certain loss of vision of what money is needed for and, accordingly, how much money is needed in the economy. The dynamics of the ratio of the money supply to the manufactured product can serve as an indicator of the existence of a problem in the monetary supply of the functioning of the world economy. A gradual increase in the ratio of money supply to GDP is observed in all countries. The rate of growth of this indicator in developed countries is generally close to the world average. In poor countries characterized by low rates of economic growth, the ratio of money supply to GDP remains quite low. Moreover, in our opinion, the leading role here is played not so much by low per capita income as by low rates of economic growth. According to the group of countries with an average level of per capita income (and especially, with “above average” incomes), the ratio is significantly higher than the world average level. The growth of the ratio of money supply to GDP is especially noticeable in the countries of the Far East, which took as an example the strategy that led to the Japanese “ economic miracle.” This strategy involves the acceleration of economic growth at the expense of the preemptive development of export-oriented industries. Periods of accelerated economic development precisely reveal the motivational role of money. Entrepreneursinnovators should receive more money. the state, or rather, its monetary regulator, the central bank, facilitates the conditions providing loans to help innovators dare and take a decisive step into something new. Entrepreneurs have separated the desire to earn money from the desire to spend to meet real needs. Due to the saturation of the economy with money, the state has already reached a high level of monetization, which indicates accumulated monetary wealth. The owners of this monetary wealth need new directions of investment, because after the ideological and motivational potential of Internetization was exhausted, the banking and financial infrastructure began to fail. A series of crises (2001, 2008-2009, 2020) was the result of a mismatch between the large accumulated monetary wealth and the lack of ideas for its profitable investment. Reconstruction of Ukraine can become such a profitable investment idea.

Cryptocurrency as a Possible Alternative to the De-dollarization of the Global Monetary System

The article analyzes the ongoing changes associated with the financial instability of the current global monetary system. In the course of the study, the prerequisites aimed at changing the world monetary order were considered; an assessment was made of the possible use of cryptocurrency as a new global monetary standard. The concept of supranational currency is formulated. The paper proposes an alternative theoretical solution for the circulation of the world monetary system, based on the simultaneous circulation of several types of world currencies at once, including cryptocurrencies. The purpose of this study was to study and determine the trends of ongoing changes associated with the transformation of the world monetary system, the circulation of cryptocurrency and a decrease in the level of confidence on the part of the world community in the US dollar. As a hypothesis of the study, the judgment is formulated that the improvement of the world monetary system must be carried out through the introduction and development of cryptocurrency as a new independent financial instrument that meets the requirements of modern society, as well as the processes of functioning of international monetary relations. The analysis of the actual problems of the current state and the prospects for the circulation of the current global monetary system made it possible to formulate the factors that influence the increase in the demand for cryptocurrencies among market participants. An assessment of the future of cryptocurrencies was carried out, the prospects for the influence of the existing world monetary system on international financial relations, as well as the further role of cryptocurrencies in it, were considered.

THE DILEMMA OF FINANCIAL POLICY IN CHINA

At present, the authorities of the People's Republic of China are faced with a dilemma: either adjust monetary policy pursued by international organizations (IMF and World bank) or continue to support the development of the real sector of the economy using direct financial maintenance. It is shown that in the first case, the PRC will better fit into the global fi-nancial system paying for this with a decrease in GDP growth rates. Under the second op-tion, based on active state support of the real sector with budgetary and banking resources, China's economic growth rates are expected to be higher, but the country will not fully meet the standards of the Western financial system. This will limit the ability to realize the benefits of participating in international financial transactions and will deter the transformation of the yuan into a world currency.

Prospects for the Development of Digital CNY

After decades of development, digital currency has been recognized worldwide. But the current private cryptocurrencies in the market, including stable coins, don’t have the potential to become a unified currency. In this context, central banks of global countries have also started research on currency digitization. The People's Bank of China started research on the digital CNY in 2014, which will help the CNY escape the control of the USD and help it dominate the world currency field. After nearly ten years of development, the feasibility and development path of digital renminbi have basically formed a definite idea. However, the development prospects of the digital CNY still face issues related to the degree and method of Block Chain integration, the impact on sovereign currencies, and decentralization. This article will give a theoretical basis and policy suggestions on the development feasibility and development prospects of the digital CNY through a brief introduction and function analysis.

A Study on Emergence of Cryptocurrency in the Modern World

21st century is a digital world, where new and improved tech is introduced on a daily basis, in short, it is an ever evolving world, Cryptocurrency latest inclusion of this trend, which was launched in 2009. In this paper you read about the emergence of Cryptocurrency, how it’s created and some of the major cons of it. Cryptocurrencies usually run on private blockchains- which are digitally distributed decentralized ledger that exist across a network and in this blockchains, every transaction is recorded and it also controls and oversees the transactions and maintains an updated data of existing users and their Crypto related digital portfolios, when ever a new unit of Crypto is created, blockchains store their unique code to avoid duplicates. Many experts believe Cryptocurrency will be a flagship currency of the digital world and because it doesn’t use any third parties in transaction its considered to be a game changer and if the predictions of Analyst do come true then many investors, brads, businesses, may also join the trend due to the growing popularity and benefits.

Мотивы и факторы противоборства в современной мировой экономике: цивилизационный аспект

The depth of the existing contradictions between states in the modern world economy requires a comprehensive and unbiased analysis, because without understanding the true causes of the confrontation between the parties to international relations, it is impossible to make correct and adequate strategic decisions. The subject of the study is the motives and factors of the confrontation between states and business in the modern world economy. The purpose of the work is to identify the causes of the fierce confrontation that manifested itself in the conditions of the Ukrainian conflict of 2022 and which tends to quickly turn into a global economic and geopolitical conflict. In this work, a civilizational approach has been applied to the analysis of the motives, factors and causes of the global confrontation of states. As a result of the conducted research, it is concluded that the modern geopolitical confrontation between Russia and the West is of a civilizational nature and is based on the desire of the countries of Western civilization to preserve their privileges, to force other states to adopt a model of the world financial architecture favorable to them, based on the dominance of the United States and the dollar as a world currency. The main reasons for the aggravation of the confrontation between states are the change in the balance of forces in the world, increased competition for all types of material, financial and labor resources, including highly qualified specialists, digitalization processes that reduce the degree of influence of countries on economic and socio-political processes.

Budućnost dolara kao svetske rezervne valute u novim međunarodnim okolnostima

The US dollar is the world's reserve currency, and it is also the currency most often used for trade and other international transactions. Due to the current geopolitical, economic and monetary developments, it is evident that a large number of countries are looking for ways to move away from the dominance of the dollar, as the leading world currency. The risk of de-dollarization has increased recently, partly due to the current Russian-Ukrainian crisis, as well as American economic sanctions against certain countries, and partly due to the growing role of the BRICS countries in the world economy. This paper argues and proves the hypothesis that the dollar as the world's reserve currency and the international monetary system are two sides of the same coin, that a complete loss of confidence in the dollar leads to the collapse of the global monetary system and vice versa, as well as that the destruction of the monetary system would lead to the disappearance of the dollar. The paper elaborates on dollar as a reserve world currency, theories of money, the dollar as a debt, deficits and monetary equivalents, the dollar and free markets, the IMF as a world bank and the SDR as a world money, the demand for gold as an indicator of distrust in the dollar, new global players and the world reserve currency, BRICS expansion and de-dollarization, and it is finalised with concluding remarks.

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.

Znaczenie dolara amerykańskiego jako waluty kluczowej w międzynarodowym systemie walutowym

Purpose – The aim is to assess the importance of the US dollar as the key world currency after 2008. Research method – The basic research methods used in the article are the study of world literature and the analysis of statistical data delivered by the European Central Bank, the Bank for International Settlements, the International Monetary Fund and SWIFT. Results – Although there has been discussion for several decades about the likelihood of the US dollar losing its position in the International Monetary System, it still maintains its status as the most important international currency. The dominant political and military position of the United States, the size of the economy and its still key share in world trade, and, above all, the market of instruments denominated in American currency and the dominant share of the dollar in the currency market, confirm the current position of the US dollar. This does not mean, however, that it will retain its current position. Analyzing historical changes in the leadership position among international currencies, one should not expect a revolution. Originality / value / implications / recommendations – The analysis of the importance of the US dollar as the key currency in the IMS, undertaken in the article, shows the importance of the problem and implies the need to carry out further research on this issue.

Позиции и перспективы валют стран с формирующимися рынками

Over the past two decades of the 21st century, there has been an increase in the role of the currencies of emerging markets in the global foreign exchange market, but their positions in the international monetary system have not significantly changed. The article demonstrates the continuing gap between the role of the leading emerging market economies in the global economy and finance and the position of their currencies in the international monetary system. This gap is driven by lower liquidity premiums for the currencies of EME countries, relatively underdevelopment of their financial systems and greater financial instability, restrictions on the placement of securities denominated in national currencies on international financial markets, as well as geopolitical factors (including the risks of imposing sanctions regimes by the developed countries). It is shown that the internationalization of the EME currencies is facilitated by such factors as internal financial stability, the relative development of national financial markets and a significant role of issuing countries in world trade. On the example of China, the relative success of the policy of internationalization of the yuan is shown, on the example of Mexico and Russia, the role of participation in regional integration associations to expand the external circulation of national currencies. There is an increase in the role of geopolitical factors in determining the positions of individual EME currencies, especially since 2022. The scenario of fragmentation of the international monetary and financial system is considered, which implies a relative weakening of the positions of current leading world currencies with a relative strengthening of the positions of the individual EME currencies (primarily Chinese yuan). Measures are proposed to strengthen the positions of EME currencies in the new geopolitical conditions: activation of interaction processes in regional and mega-regional associations, formation of payment and settlement systems within them in national currencies using digital technologies, creation of regional markets for securities denominated in national currencies, the conclusion and activation of multilateral currency swap agreements between the central banks of EME countries.

Статистичний аналіз та прогнозування складових національного валютного ринку в умовах вторгнення рф в Україну

The article focuses on determining the impact of the consequences of the russian invasion of Ukraine on macroeconomic stability and the exchange rate of the national currency. The relevance of the chosen topic is substantiated. The problems of assessing the negative consequences of the russian invasion of Ukraine are outlined, including: violation of general macroeconomic stability, significant fluctuations in foreign exchange markets and destabilization of the national currency. The study considers the theoretical and methodological foundations of the study of foreign exchange markets and analyzes global trends in the development of the global currency market. The structure of world currency reserves is analyzed according to the assessment of the currency composition of the official currency reserve (COFER) of the IMF. The analysis of the dynamics of average spreads of purchase and sale of reserve currencies against the US dollar for traditional and non-traditional reserve currencies is carried out. As a result of studying world trends, the main factors that affect fluctuations in the exchange rate of currencies are identified. The main problems regarding the functioning of the national currency market in the context of the hostilities in Ukraine are outlined, in particular, the existing inflationary processes are analyzed. The dynamics of currency interventions of the NBU for 2021-2022 is considered. The features (advantages) of the application and the results of using the singular spectral analysis (SSA) method for predicting fluctuations in the US dollar and Euro in the national foreign exchange market are presented. The practical implementation of this method was carried out using the CaterpillarSSA software product. Evaluation of the accuracy of the forecast is performed using the MAPE method. The obtained forecast errors (less than 6%) suggest that the constructed models are adequate and can be used for further research and recommendations. Thus, it can be concluded that for Ukraine the most important factors affecting the exchange rate are seasonality and successful trade policy of the government, which, in turn, largely depends on resource prices. The carried out research allowed to highlight the features and main aspects of the functioning of the foreign exchange market of Ukraine during the period of ongoing military aggression.

Финансово-бюджетная политика как инструмент реализации страте-гических приоритетов США

The relevance of the article is due to the transitional period of the development of the world community in modern conditions, when Western states are mak-ing all possible, often illegitimate attempts to maintain their dominance in the world. The instrument for implementing the strategic plans of Western coun-tries in the long term is mainly the US federal budget as a means of implement-ing strategic priorities, regardless of which party wins the US presidential elec-tion. The subject of the article is the system of financial and economic relations in the United States, aimed at implementing the strategic priorities of U.S. economic policy for a long time. In modern conditions, this is the reindustrialization of the national economy along with the fulfillment of tasks to ensure social sup-port and protection of the population, as well as to maintain dominance in the world community, and at any cost, including by rewriting the so-called no-where approved rules of the world order and the formation of coalitions of countries that share the political views of American politicians and economists who advocate planting a "moral" economy in the world and promoting its val-ues. The article analyzes the strategic economic priorities of D. Trump's policy and the last budget message of President J. Biden in 2023, identifies elements of continuity and reflects the specifics of the reindustrialization of America. Con-clusions are drawn about the continued growth of the US federal budget deficit, indicating the continuation of the implementation of the "life on loan" model in the economy, which is based on the dollar performing the functions of the world currency, a means of settlement and accumulation.

ОСНОВНІ ВИКЛИКИ ФУНКЦІОНУВАННЯ ІНДУСТРІЇ КРИПТОВАЛЮТ НА ФІНАНСОВОМУ РИНКУ

The article analyzes the rating of Ukraine according to the Global Cryptocurrency Adoption Index. It is noted that out of the TOP-20 countries in the rating, there are ten countries with below-average income, eight countries with above-average income and two countries with high income. This trend demonstrates the dominance of developing markets. The dynamics of the bitcoin and USD exchange rate are analyzed. Forecasting of the bitcoin exchange rate was carried out using the exponential smoothing method, because this method showed the smallest mean absolute error. The forecast results show the growth of the bitcoin rate. The interdependence between exchange rate of bitcoin cryptocurrency and pairs of the most influential world currencies, world prices for precious metals and securities rates on the largest stock exchanges is determined using correlation-regression analysis. The advantages of using cryptocurrencies have been identified, including high speed of transactions, reduction of the number of intermediaries and low fees. Also defined the threatening nature of the development of the crypto-industry for the economic potential of the state, taking into accountavailable withcurrent global challenges such as cyber-attacks and fraud and data theft. Real fraud schemes in the field of cryptocirculation are considered. The main challenges to the functioning of the cryptocurrency industry are analyzed, including volatility, uncertainty, risk of loss, insecurity of owners, lack of guarantees, large number of cryptocurrencies, technical risk, fraud and data theft. It is noted that without determining the clear legal status of cryptocurrencies in the country, it is impossible to resolve the legal, accounting and tax consequences of these transactions. It was determined that for the legal circulation of cryptocurrencies, the creation of a financial institution or a special state body, which should exercise control over the circulation of cryptocurrencies, must be ensured as a minimum; introduction of taxation for companies whose activities are related to the crypto industry; establishing the obligation of users to declare their income and profits from income regarding crypto-assets in the national currency, etc.

Hybrid Pointer Based Blockchain Solution and Ledger Data Services Interoperability

The Blockchain concept has erupted from decentralized digital currency world and has reached a high penetration in other areas where the certification of transactions and its immutability is required. The experience on elevated security to event time driven data assertion was transferred from the digital currency to the data driven enterprise world. In applications were highly regulated and certified data intensive systems are needed, Blockchain becomes a strong solution. Areas like the management of the lifecycle of reusable rockets, aeronautics, aerial surveillance, aviation safety, wind turbine and solar farms, electric grids and others, the amount of generated data to be registered and certified is considerable. Many implemented Blockchain solutions tend to register and add to the Blockchain, large amounts of data that reduce the Blockchain management and usability. This work proposes a Hybrid Pointer Based Blockchain solution to overcome the issues, by integrating several parallel services that work side by side with distributed, secured and certified peer node systems that guarantee the data immutability and interconnection to the different blockchains that interact with each other. The proposed Blockchain solution presented in this work interacts with the peer nodes edge services, from software services to hardware generated data and AI assessments.

SYSTEM ANALYSIS OF SUBJECTS CRYPTOCURRENCIES OPERATIONS IN THE CONDITIONS OF GLOBAL CHALLENGES

The article considers cryptocurrency as a new type of intangible assets and the regulatory and legal support for its implementation. Particular attention is paid to defining the content, legal status, features of accounting, and taxation of transactions with such assets. The market capitalization and bitcoin forecast are analyzed. The interdependence between the exchange rate of bitcoin and pairs of the most influential world currencies, world prices for precious metals, and securities rates on the largest stock exchanges is determined. The most significant influencing factors on the bitcoin price are determined using correlation and regression analysis. The advantages of using cryptocurrencies have been identified, including high speed of transactions, reduction of the intermediaries number, and low fees. The threatening nature of the crypto-industry development for the economic potential of the state is also determined, taking into account available with current global challenges such as cyberattacks and fraud and data theft. Real fraud schemes in the field of crypto-circulation are considered. It is noted that without determining the clear legal status of cryptocurrencies in the country, it is impossible to resolve the legal, accounting and tax consequences of these transactions. It was determined that for the legal circulation of cryptocurrencies, the creation of a financial institution or a special state body, which should exercise control over the cryptocurrencies circulation, must be ensured as a minimum; introduction of taxation for companies whose activities are related to the crypto industry; establishing the obligation of users to declare their income and profits from crypto-assets, etc. Because of this, the functions of state authorities in regulating operations with cryptocurrencies are characterized, and the changes that will be introduced to the Tax Code of Ukraine are analyzed, regarding the taxation of transactions with cryptocurrencies, which in the future will make it possible to increase budget revenues, regulate and facilitate accounting and taxation of transactions with cryptocurrencies, use legal remedies for virtual assets, reduce possible tax evasion, etc.

Создание стабильной финансовой системы с целью укрепления совокупной мощи государства (на примере Китая)

The authors have attempted to promote the conceptual views of Wang Yongli, a Chinese academic economist with extensive and authoritative practical experience, to the Russian audience of experts in the international monetary and financial sphere. The theoretical summary of the successful practice of China’s financial industry and the justification of the importance of urgent reform of the international monetary and financial system, presented in Wang Yongli’s book “China’s Choice in the Global Financial Turbulence” became the basis for this article. An informative translation of the book’s fragments dedicated to the reforms of the international monetary system highlights two areas, i.e. social positioning of monetary finance and reform of the international monetary system. The article analyzes the main issues identified as a result of China’s rapid financial development and determines possible ways to solve them. The purpose of financial development is to serve the real economy, and promote economic development for creating greater economic and social value through the examination of the relationship between the real economy and the virtual economy, the relationship between currency finance and real economy. The authors introduce a model of interaction of aggregate power and international influence of the country: the international influence of the country’s currency finances and its status in the international monetary and financial system. An appeal to various concepts explaining the global expansion of the US dollar leads to the conclusion that the International Monetary Fund (IMF) needs a deep reconstruction. A detailed analysis of the history of the formation, management and reform of the IMF is given, revealing its inconsistency with global development trends. The article shows the role of China after the 2008 financial crisis and the significance of the yuan in the currency basket. The study represents the author’s position on the transformation of special drawing rights (SDRs) into a super-sovereign world currency. By highlighting the issues Wang Yongli has foreseen many situations and events that are now taking place in the global monetary and financial system.

The impact of the development of the world monetary fund on international financial and economic relations

This article raises the issue of the development of the world currency market, as well as its influence on the development of international economic relations. For a deeper understanding of this problem, the author first of all considers the concept of a monetary and financial organization, the direction of its activities and lists the leading international monetary and stock organizations, namely: the IMF, WTO, World Bank. Further, the author proceeds to a more detailed consideration of these currency and stock organizations: their functions, goals and objectives are analyzed, the structure of organizations is indicated, and historical information is given. The author also draws attention to the fact that there are special currency and stock organizations whose activities are aimed at regulating the debts of foreign borrowers (for example, the London and Paris Club of creditor banks). The author comes to the conclusion that it is thanks to the functioning of currency and stock organizations that the regulation of credit activities, trade relations between countries, their debts and financial flows between them is carried out. The author then proceeds to consider the International Monetary Fund. The article provides the history of the emergence of this organization, the share of the authorized capital. In addition, the author examines the current structure of the IMF, its functions. Particular attention is paid to the role of the IMF in currency regulation. Within the framework of this aspect, the concept of SDR (special drawing rights), its course and purpose is revealed. The role of the IMF in providing short-term and medium-term loans in case of a deficit in the state's balance of payments is considered in more detail. Such aspects as the reserve share and its size, credit shares and its framework, stand-by stand-by loans are analyzed. In the final part, the author summarizes the importance of the world currency market in the global economy and international relations.

Theoretical Foundations of the Dependent Monetary Regimes

The purpose of the present article is to present a comprehensive framework to analyse main characteristics and institutional forms of the dependent monetary regimes. A country’s monetary regime is an extension of its geopolitical and geo-economic place in the international system. The dynamic monetary dependence/independence of a particular country is a direct continuation of, as well as ‘serving’, the (geo) political and economic dependence/independence of that country. That dependence does not mean that small countries do not benefit from this type of monetary and political regimes; on the contrary – in most cases it is the most appropriate, so to speak, “optimal” form which, if skilfully managed, minimises losses under a given external structural constraint. As a rule, in dependent countries, external sources of money supply dominate domestic sources. Peripheral and dependent countries cannot borrow on international markets in their own national currencies. They borrow in major world currencies and become vulnerable to currency (exchange rate) risk. The inflow of external capital, in turn, requires a corresponding stable institutional and political environment. Therefore, the external equilibrium (external stability), i.e., the state of the balance of payments and especially its financial (capital) account, as well as the dynamics of the exchange rate, become central parameters for the development of the peripheral countries. It is interesting to add that the imposition of a dependent regime in small and peripheral countries is accompanied by the imposition and dissemination of economic views, theories and ideas (“economic narrative”), which legitimise this new monetary regime and prepare the imposition of a certain economic development model.

Forex Investment Optimization Using Instantaneous Stochastic Gradient Ascent—Formulation of an Adaptive Machine Learning Approach

In the current complex financial world, paper currencies are vulnerable and unsustainable due to many factors such as current account deficit, gold reserves, dollar reserves, political stability, security, the presence of war in the region, etc. The vulnerabilities not limited to the above, result in fluctuation and instability in the currency values. Considering the devaluation of some Asian countries such as Pakistan, Sri Lanka, Türkiye, and Ukraine, there is a current tendency of some countries to look beyond the SWIFT system. It is not feasible to have reserves in only one currency, and thus, forex markets are likely to have significant growth in their volumes. In this research, we consider this challenge to work on having sustainable forex reserves in multiple world currencies. This research is aimed to overcome their vulnerabilities and, instead, exploit their volatile nature to attain sustainability in forex reserves. In this regard, we work to formulate this problem and propose a forex investment strategy inspired by gradient ascent optimization, a robust iterative optimization algorithm. The dynamic nature of the forex market led us to the formulation and development of the instantaneous stochastic gradient ascent method. Contrary to the conventional gradient ascent optimization, which considers the whole population or its sample, the proposed instantaneous stochastic gradient ascent (ISGA) optimization considers only the next time instance to update the investment strategy. We employed the proposed forex investment strategy on forex data containing one-year multiple currencies’ values, and the results are quite profitable as compared to the conventional investment strategies.

Taxonomy of Sustainable Finance and ESG Principles

In the context of intense external and internal economic and social changes, there is a high degree of uncertainty in the financial, commodity, stock and other markets both in individual countries and in the global economy. The consequences of these changes result in increase in the volatility of the exchange rate of domestic currencies of individual countries in relation to the leading world currencies, as well as local investment markets, real estate, business and other assets. The most important task of investors and companies, especially in times of uncertainty, is to make informed management decisions, its purpose is to increase the sustainability of business and investment in business projects. One of the strategies for increasing the sustainability of business and its sustainable development is traditionally compliance with ESG (Environment Social Governance) principles, the advantage of which is the combination and mutual influence in the areas of environmental, social and economic sustainability of activities. Since both enterprises themselves, countries, economies, societies and disclosure of information about them are in constant change, a unified classification system for identifying sustainable economic activity, or “taxonomy”, is important. World experience demonstrates, on the one hand, trends towards uniformity of the methodology and concept of the taxonomy of sustainable finance; on the other hand, the individual characteristics of the national economy of a country require adaptation of general concepts to its unique characteristics. Currently, Russian developments in the field of taxonomy of sustainable finance are actively developing, and in this article, research has been carried out on the steps taken in this direction in Russia and the world, and a simplified scheme for determining the areas that fall within the scope of various taxonomy terms has been proposed, modified taking into account Russian specifics.