1. Means of payment: The main function of the world currency is to balance the trade balance as a means of payment. Foreign trade has two sides, that is, each country exports and imports goods, and it is mainly carried out by credit. So there is a mutual debt relationship between countries.

The settlement of these debt relationships can be carried out by offsetting credit instruments (such as bills of exchange, checks, etc.). ). For the offset difference, the real currency is used as the final settlement means for payment. At this time, the world currency performs the function of international payment means;

2. Means of purchase: When money is directly used to buy goods from abroad, it plays the role of an international means of purchase. At this time, it is not like a commodity exchange intermediary in domestic circulation, but as a monetary commodity to exchange with other commodities.

This situation mainly occurs when the normal commodity exchange between different countries is suddenly disrupted due to unexpected events (such as war and famine), and the balance is destroyed, so one country has to buy a large number of commodities from other countries; Or when a country unilaterally buys goods from another country, the sale and purchase are separated from each other;

3. Means of transfer: When wealth is transferred from one country to another, but for various reasons, it cannot or is not suitable to be realized in the form of goods, but in the form of money, money acts as the embodiment of social wealth, thus realizing the international transfer of wealth. For example, the defeated country pays monetary compensation to the victorious country, a country provides monetary loans to other countries, or capitalists transfer monetary capital from home to abroad, and so on.

Extended data:

World currency refers to the currency that transcends the domestic circulation field and performs the function of universal equivalent in the world market. The role of precious metals as a world currency is as follows: as a general means of payment, it is used to pay the balance of payments. As a general purchasing method, it is used to buy foreign goods. Act as the absolute social embodiment of wealth and transfer wealth from one country to another.

Marx believes that money has five main functions, namely, value scale, circulation means, storage means, payment means and world currency:

1, numerical range:

Meaning: Money is a tool to measure and express the value of all other commodities. Features: concept currency;

2. Means of circulation:

Meaning: Money acts as a medium of exchange in commodity circulation. Features: real currency; Money is fleeting when it performs the function of circulation means, so it must be paid in one hand and delivered in the other;

3, storage means:

Meaning: Money is out of circulation, in a static state, and preserved as an independent value form and a general representative of social wealth. Features: Full-value coins (from the perspective of capital theory);

4. Payment method:

Meaning: refers to the unilateral transfer of money as an independent movement form of value when buying and selling goods by deferred payment. Features: real currency; Unilateral transfer of value. Because the premise of payment means is deferred payment, its transaction is delayed, not instantaneous;

5. World currency:

Meaning: Money transcends the domestic circulation field, acts as a universal equivalent in the international market and performs the functions of the world currency. Features: the currency is stable, freely convertible and generally accepted. The unity of value scale and circulation means is money, which are the two most basic functions.

Baidu Encyclopedia-World Currency