The International Payments and Monetary System in the Integration of the Socialist Countries

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Economic cooperation among CMEA countries is governed by collectively developed monetary and financial regulations. These regulations outline the organizational structure for international settlements, currency selection for transactions, principles for international credit, and the exchange rate determination between national and convertible currencies. They also address international exchange and transfer rules, as well as currency allotment guidelines for citizens, highlighting the role of international transfers. Additionally, provisions exist for settlements and credit transactions facilitated by independent international banks. Together, these regulations and institutions create the CMEA's international payments and monetary system. The financial and monetary regulations evolved through several stages, shaped by prevailing conditions and objectives. From 1949 to 1963, economic cooperation primarily took the form of bilateral clearing agreements. In these agreements, the Soviet rouble served as the currency for settlements between the Soviet Union and other CMEA nations. Foreign trade prices were based on world market prices, not internal Soviet producer prices, and were expressed in roubles using the exchange rate of the Soviet rouble against the US dollar as quoted in the Soviet Union.