A monetary system is a type of money circulation device in a country that is enshrined in law and provides for the unity of the various elements of money circulation.
The monetary system establishes the metal of the currency, the monetary unit, the order of coinage, the order of circulation of money.
The basis of the system is a noble metal that performs the function of a universal equivalent. Foreign exchange metal is determined by the conditions of the historical era. Since the beginning of the twentieth century, in capitalist countries, it has become gold instead of silver.
National monetary systems began to take shape from about the 16-17th centuries. together with the affirmation of capitalism, centralized states and the formation of national markets.
The monetary system of any developed country includes such elements as the monetary unit, a certain type or types of money, the scale of prices, the issue system and the state apparatus for regulating the circulation of money.
Currency - the amount of precious metal taken as the price scale. The name of the currency is determined by the state. The scale of prices is the expression of the value of a commodity through a specific weight content of a precious metal in a monetary unit.
The types of money that are legal official means of payment are credit money and banknotes, coins and paper money.
Under the emission system is understood the procedure for the issue and subsequent circulation of banknotes, established by law. The issue is conducted by the central bank and the treasury.
The monetary system is characterized by such common features for all developed countries. This is the abolition of the official gold content in monetary units (demonetization of gold); transition to credit money; keeping in circulation along with credit paper money; the predominance of cashless cash; issuance of banknotes in the order of lending to the state, economy and against the growth of gold and currency resources; strengthening state regulation of the circulation of money.
A monetary system can be represented by one of its two types. The first is a system of metal circulation based on real money (metal of gold or silver), in which circulating banknotes can be exchanged for real money. The second is the paper-credit circulation system, when real money is replaced by cost signs, while only paper and credit means of circulation and payment remain in circulation.
The modern monetary system of the Russian Federation began to take shape after the collapse of the Union. Today, the monetary system and money circulation operates in accordance with the law on the Central Bank of April 12, 1995, which determined its legal basis.
The monetary unit of the Russian Federation (currency) is the ruble. The introduction of other units of money is prohibited by law. According to the law, the ratio between rubles and gold is not required.
The ruble exchange rate in relation to the currencies of developed countries is set by the Central Bank of the Russian Federation and officially published. This is necessary to maintain normal conditions for the country's economic activity.
The types of money that are valid in the Russian Federation are banknotes and metal coins. They are secured by assets of the Central Bank, which include gold reserves, securities, and reserves of credit institutions.
The central bank approves samples of banknotes. The release of new money is reported in the media.
In the Russian Federation, cash (and coins and banknotes) and non-cash (funds in the accounts of credit institutions) are in circulation.
Since the ruble is not associated with gold, there is no fixed price scale in the Russian Federation. The government formally sets the scale of ruble prices.
The central bank uses the following instruments to regulate the economy with the help of monetary policy: discount policy (discount rate), reserve norms of credit institutions, open market operations, regulation of standards for credit institutions, etc.
New money is issued on the basis of an issue permit issued by the Board of the Central Bank within the amount established by the Government of the Russian Federation.