Means of international payment
The means of international payment are:
1. currency
2. international currency
3. foreign exchange.
1. The currency – national currency of international circulation The currency is classified by the way they are owned (cash or account), by the way the account currency may be used (visible currency and currency deposited at a deadline), by the method of currency exchange(convertible currency, transferable, free usable, non-convertible). The convertible currency is freely exchanged without any restrictions and the non-convertible currency is exchanged only with the approval of the able institutions.
2. International currency - it represents the currency that is used outside the country’s border. There are two categories of international currency:
1. The national currency of some countries that have the role of payment and reserve on the international market.
2. currency emited by institutions specialised as monetary tools and account units: DST, ECU, ASEAN- Assian Monetary Unit. In order for a national currency to be considered a international currency, it has to meet three requirements: - standard measurement – it has to be used in the quotation of products internationally. - exchange tool – it has to be used as a billing currency for merchandise in internationl commercial operations. - book value – the presence of the certain currency in the componence of bank reserves and in the volume of currency title emissions on a long and medium term.
3. Foreign Exchange – it has all the credit titles expressed in short term currency:
- Bills – direct commitment to pay
- Checks – payment tools through which the drawee, the owner of a bank account gives unconditional order that the bank pays a certain amount of money to a beneficiary from his available account.
- Promissory notes – a note to a certain person called emitter who commits to pay to another person or at his order a sum of money at a certain deadline
- Shares
- Bonds
- Treasury bills
