International financial relations are relations regarding the provision of loans, loans and investment in the economy of other countries. The level of development of this type of financial relationship is determined by the degree of development of the national economies of the countries, the world economy as a whole, the political situation, the nature of relations between states. The higher the level of production of a country is characterized , the more perfectly the division of labor and the strong ties between states, the more significant are the flows of capital between them.
International financial relations unfold, first of all, in the form of currency transactions, during which part of the money capital of states is converted into currency or vice versa.
Currently, the main centers of international financial activity are the countries of Western Europe, the USA and Japan. Their income from financial transactions in the international arena often exceeds income from foreign trade.
International monetary and financial relations are formed with the direct participation of government and national institutions, international organizations and private enterprises. Relations in the economic sphere of a similar level are regulated by numerous international organizations specially created and operating in accordance with international agreements in the field of conducting joint economic projects.
The largest international financial organizations are the IMF, WTO, as well as a number of specialized funds and various international banks.
The content of international financial relations today implies a rather large circle of relations that play a particularly important role in a situation where the export of goods (services) is a strategically important area of economic development for states.
International financial relations take the form of international credit and financial relations, world trade, mutual provision by countries of international services, industrial cooperation, international tourism, scientific and technical relations.
Most of the countries involved in the world economy are now closely connected at the level of political, economic, scientific and other fields of activity. These ties are strengthened more and more over time, which leads to the expansion of cash flows, capital, credit resources between individual countries. In this regard, international finances are grouped in relation to business entities of the states, in relation to the states and governments of other countries with business entities of foreign states, regarding the relationship of states and business entities with world financial organizations (structures of a supranational level).
International financial relations by their purpose are mediated by cash flows between individual entities of different states. Such entities may be enterprises (purchase and sale relations), governments of different countries (regarding lending to other countries or state lending to foreign entities of another country), etc. Any international loans are bilateral relations (granting a loan - repaying it and paying interest on it).
International finance reflects the global integration processes in the modern world with their functioning. They support the activities of supranational structures through funds specially created for this by special international organizations.
Increasing the authority of existing international financial organizations leads to an increase in the level of financial centralization and the transition to a single monetary unit.