  We derive an effective dissipative quantum field theory for fluctuating
orbital currents in clean $CuO_2$ sheets of high-$T_c$ cuprates, based on a
three-band model. The Coulomb repulsion term between $Cu$- and $O$-sites is
decoupled in terms of current operators representing horizontal and vertical
parts of circulating currents within each $CuO_2$ unit cell of the lattice. The
model has ordering of currents at finite temperatures. The dissipative kernel
in the model is of the form $|\omega|/|{\bf q}|$, indicating Landau damping.
Applications of the effective theory to other models are also discussed.
